REPO REPORTING

[Anonymous]

In June of 2008 I voluntarily surrendered my car. During that year and never thought to check my credit report because I wasn't planning on purchasing are applying for credit for anything. Now I am trying to purchase my first home, when I put my credit report I realize from June of 2008 till August 2009 the company I purchased my car from is reporting me as late payments starting from 30 days late to one hundred and eight days late. Under the fair credit reporting act after a voluntary surrender are they still allowed to report me of having late payments to vehicle was voluntary surrender?

If anybody out there has some idea on this question and really appreciate an answer if they are allowed report it a my credit report as being late after receiving vehicle for voluntary surrender.

[SCF]

Welcome to the forums!

I believe that even if you give the car up, they can still hold you liable for the difference between what they sold it for and what you owed on the vehicle and they can note that you are late on payments for the difference.  It sounds like you need to do some homework to figure out when and how much they sold the car for and what they are holding you responsible for.  You should definitely start by checking the paperwork they gave you to make sure the amounts match.

You should also try to get this resolved, because if they did sell it for less than you owed, you are legally liable for the difference and it could be sent to a collections agency or you could be sued.  Others will offer more advice, but I would start by digging up every piece of paperwork you have from the loan and the surrender so that you can answer their questions and start getting this sorted out.

Good luck!

[llecs]

Unfortunately it appears to be reporting correctly. Whenever you return a car to the dealer, it is considered a repo. The bank would have sold the car at auction and you'd have to pay a difference between the balance of the loan vs. the price they sold it for. They would then report it late every month that the balance is unpaid up to the point you pay the balance or they sell the debt to a CA.

If you have the $$$ to PIF the reported balance, then consider sending them a PFD. If they agree, then you could get it deleted.

ETA....I am the slowest typer in the world. SCF beat me to it.

Message Edited by llecs on 08-26-2009 11:01 PM