Is it legal for the finance company to list the car as a repossession on my credit report, if I’m still in possession of the vehicle?

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Is it legal for the finance company to list the car as a repossession on my credit report, if I’m still in possession of the vehicle?

I am 2 months behind on the payment. They’ve never taken possession of the vehicle and I am still paying on it.

Asked on September 20, 2011 under Bankruptcy Law, Georgia

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

This situation (wherein the credit report shows your car as a repossession even though you have possession of the car) may be easily addressed and fixed. Even if you are one day late on your motor vehicle loan, the sales finance company may be still able to come in without notice and repossess the vehicle. You can choose to immediately pay so you are not behind and address any finance charges or late fees assessed to your account. You can also contact all three credit reporting agencies that have listed this loan and in particular listed this loan as a repossession and dispute it with the credit reporting agency. Be careful because the proof you will show is that you are two months behind and it will require the credit reporting agency to investigate your dispute. Once you dispute and the credit reporting agency begins an investigation, it will be required to contact the sales finance company. If it is does contact the sales finance company, it may trigger the company to actually repossess your motor vehicle.


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