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?

UPDATED: Sep 20, 2011

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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


MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 11 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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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