topic Re: Unique Situation - Best Way to Resolve in General Credit Topics

Unique Situation - Best Way to Resolve

Anonymous — Thu, 05 Dec 2019 02:40:43 GMT

Hi all, I am so impressed by the credit knowledge here and would love your input on a situation I am trying to resolve. I had an auto lease through Chase Auto Finance. It was a 3 year lease that I extended for an additional 6 months because the newest version of the car I was leasing was due to be released a few months after the lease was scheduled to end, so I wanted to be able to test drive that car to decide whether I'd lease the newest version of the same vehicle or do a lease buy-out. At the end of the 6 month extension, I decided to buy my current vehicle. I called Chase to let them know and they informed me over the phone that they'd mail me buy-out paperwork. Well, about 8 weeks later I walk out of my front door to find that the car was gone. I instantly thought it had been stolen. I came to find out that Chase had repossessed the vehicle. Now, a few important things to note:

I continuted making payments on the car for the 8ish weeks between the call about the buy-out paperwork and the repossession. I continued to received email reminders from Chase that my monthly payment was due, and paid them all on time.
The most recent payment was processed 12 days prior to this happening.
I did not receive one email or letter about a pending repossession, and considering I was still making all payments, I never thought that this would happen.
I have never been in bad standing with Chase or any other bank. Before this, my score across all three bureaus ranged from 780-800, and I have been very careful about maintaining a solid credit score.

In the aftermath, through many calls with Chase Auto, they tell me that the car was repossessed NOT due to lack of payment, but due to lack of turning the car back in at the end of the lease term. Some of the agents I spoke with quoted the original end date of the lease (without the 6 month extension), incorrectly saying I was overdue turning in the car by 8 months, whereas other agents quoted the revised end date that did include the extension, saying I was overdue turning in the car by 2 months. I received inconsistent information depending on which agent I spoke with that day. I told them that I was not overdue - I had requested lease buy-out paperwork over the phone and provided them with the date of that conversation, and let them know that I had never recieved the requested paperwork. I mentioned that I believed the calls were recorded so there should be evidence of this. They basically admonished me for not following up sooner, but I truly didn't know that I should have received the paperwork much sooner - I had always owned cars in the past rather than leased them and this is my first time going through this process.

I financed the balance on the car through a credit union that was wonderful to work with. Chase has been fully paid and I have the car back. The "repossession" has now hit my credit report and absolutely tanked by scores across the board to ~648. Chase is still accurately reporting that I did not miss any payments, but the status on the account is "Closed - Derogatory" or "Closed - Repossession." Remarks were added "Paid Repossession" or "Paid after Repossession." This is incredibly frustrating to me because I didn't miss any payments, nor did I only pay after a repossesion! And I thought I was doing the right things, in good standing with them. If it matters, I also have a Chase Sapphire card and have never missed a payment on the card or anything like that.

I don't think this repossession is valid, and am worried that any lender will see a repossession on my report and instantly assume it was due to non-payment, disqualifying me from the best interest rates if not rejecting me from loans altogether. My finace and I are planning on buying a home within the next year and I am terrified that this will derail our ability to get a mortgage. Please advise me on the best way to resolve this issue, or any thoughts/suggestions you may have. I greatly appreciate it!

Re: Unique Situation - Best Way to Resolve

ldkcivilservant — Thu, 05 Dec 2019 15:27:46 GMT

This is a mess... I'd be talking to an attorney first and formost to get their opinion as it will destroy your home buying power if not resolved.

Re: Unique Situation - Best Way to Resolve

Trudy — Tue, 10 Dec 2019 15:51:31 GMT

I've not heard of such a thing. But I'd find every possible higher up to write to explain the situation. Show proof of payments, acknowledging that you weren't fully aware of the lease to buy process and trusted what one of their employees told you over the phone. To prove your point about intending to buy note this is proven by your later purchase of the vehicle. I'd supply proof of every payment particularly highlighting those sent after the lease was up to show there was no intent to keep the car for no other reason than your request to do a lease buy out. I'd bring up the long good history with them and that this mark on your credit report may create financial challenges for you in the near future, namely purchasing a home. That this could impact your MTG approval and/or interest whether that be with Chase or someone else. Good to mention this so they know they may lose you as a potential MTG customer. Note everything you mentioned here, including the number you called about the buy out and if you can remember the person you spoke with. Ending with a plea that a correction is sent to the credit bureaus.

I'd start there before paying for a lawyer, even going into some branches if Auto financing is affiliate with the bank, particularly any major branches like many have at a downtown office. I'd bombard them with letters on the lines of a goodwill campaign.

Re: Unique Situation - Best Way to Resolve

Anonymous — Sun, 08 Dec 2019 09:02:40 GMT

Yeah, you need to speak to someone in the executive office level; gotta escalate this. No way should you be penalized for their employees negligence and ineptitude.

You requested the paperwork, and while you should've followed up, they should've sent the paperwork. There are obviously notes in the file on the 6 month extension, and there should be notes from the conversation about the buyout.

First, I'd send a certified letter requesting all data regarding this account be preserved, to include recorded phone conversations, file notes, ect..Then contact EO and give it a go.

If EO fails, its time to file a dispute with the CRA (with all documentation) to meet procedural requirements.

If no results, it may be time to file a FTC/CFBR complaint or speak with a consumer rights attorney.