Actual Balance on Repossessed Vehicle

[SOGGIE]

I'm providing this example to understand what actual balance a lender is allowed to report to a CRA in this scenario.

Veh Condition: Sold as Lemon

Voluntary Repossession: Within 4 months

Status: Charge Off

Auto Loan: $7000

Payments on Loan: $1000

Adjusted Bal: $6000

Repo-Related Costs: $400

Adjusted Bal: $6400

Veh Sale (Auction): $4000

Adjusted Bal: $2400

Total Reportable Bal: ??

@RobertEG what say you sir or others who may know the answer.

[Horseshoez]

@SOGGIE, when you say "Payments on Loan" of $1,000, did you make that much in payments, or is that the total of the principal portion of your payments?

[SOGGIE]

@Horseshoez For this example, this would be the total payments a person made on the loan. I didn't include the interest. Just wondering whether or not the balance reported to the CRA should include a deduction for the sale (auction) of the vehicle after the voluntary repo.

[tcbofade]

Thankfully, it's been nearly 30 years since I've had any first hand knowledge of this, but when it happened to me, the updated balance (after the sale) was the balance reported to the CRAs.

That was in Arizona and may vary by state, lender, etc... and may have changed in the last 30 years...

[SOGGIE]

The balance to be reported is in accordance to State Repossession Law. I believe the deficiency balance is what can be both collected and reported, not the delinquent amount at the time the vehicle was repossessed.

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@tcbofade wrote:

Thankfully, it's been nearly 30 years since I've had any first hand knowledge of this, but when it happened to me, the updated balance (after the sale) was the balance reported to the CRAs.

That was in Arizona and may vary by state, lender, etc... and may have changed in the last 30 years...

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