Skip to main content

Can I dispute a car loan off my credit report?

Mission, TX |

Last year I brought a car from this run down dealership. The car turned out to be a lemon but in the contact we signed it says that they would fix it if anything happened to it and I would have to buy the parts only... Well after 5 times in 3 months that I had been there and over 400 bucks in repairs I got fed up and returned the car now it's on my credit report and I was wondering if there is a way I could dispute since they were rude, and never wanted to help us with anything please if anyone can help I would appreciate it.

Attorney Answers 5

  1. Did you receive anything in writing from the dealership when you returned it?

    If you'd like to discuss, please feel free to call. Jeff Gold Gold, Benes, LLP 1854 Bellmore Ave Bellmore, NY 11710 Telephone -516.512.6333 Email -

  2. It is common for people to think that voluntarily returning a car is better a repossession, but it makes no difference. You had a duty to pay for the car and you did not. That entry is correct and will remain on the record.

    This comment is given for educational purposes only. No attorney-client relationship exists between us.

  3. You should definitely dispute it on your credit record. You can use this free online form letter to complain about credit record errors: When you can no longer stand to pay for a bad car that you bought, your best course of action is the one that does you the least future harm. If you surrender the goods to the seller and don’t get released from the debt, they can resell them and if they don't get as much as what you still owe then in most states (and if they did the initial paperwork right) they have the right to make you pay for their financial loss. It's called a deficiency. If it isn't much, they may not care and let it go. If it is a lot, then the rules on claiming a deficiency are the same as in a repossession. When your vehicle is repossessed for late payments, even if you voluntarily return it to the dealer, virtually every state has a law that says the lender must send you a specific notice of their intent to sell your vehicle, including when and where and for how much, if you don’t “redeem” it by paying them what they want to let you have it back, assuming the amount is legally calculated under your state repo laws. If you want the vehicle back then the lender usually has the right to make you pay the loan current plus the repo costs and sometimes one or more payments ahead - it all depends on your state’s laws and your finance contract. If you don’t pay it or work it out, then the lender usually will sell the vehicle at either a private sale or an auction. Often, though, they just sell it to a dealer - sometimes the same one you bought it from in the first place. Of course they hardly ever sell it for what is owed on it and you often will get a “deficiency notice” saying that you still owe the rest of the loan balance. Virtually every state’s repo laws say that they have to send you a written explanation of the sale proceeds and how they were used and what, if anything, you still owe them. That’s when you have to be very careful. The law in each state is a little different but they generally all require this very specific kind of notice to be sent to you, saying some very specific things, within a specific and limited time from when the sale occurred, or they can’t make you pay the loan balance. Many lenders, both big and small companies, just don’t send the right notices, saying the mandatory things that have to be said to you, at the right time. Or they may not make their calculations right in the deficiency notice letter. And if any of that happens, they may not be able to collect a dime from you. But it all depends on the paperwork and your local laws. To find out what all this means in your situation, you need to talk to a local Consumer Law attorney who deals with this kind of case. You can go to this web site page for a Free Online 50 State National List of Consumer Law Lawyers ( and find one near you (lawyers don’t pay to get listed here and most of them are members of the only national association for Consumer Law lawyers, You can also look for one here on Avvo under the Find a Lawyer tab. Or you can call your local attorney's Bar Association and ask for a referral to a Consumer Law attorney near you. But act quickly because for every legal right you have, there is only a limited amount of time to actually file a lawsuit in court or your rights expire (it's called the statute of limitations), so don't waste your time getting to a Consumer Law attorney and finding out what your rights are. If this answer was helpful, please give a “Vote Up” review below. Thanks for asking and Good Luck. Ron Burdge,

    Did a business treat you unfairly? See what your Udap rights are to protect yourself, click here

    For a Free Online 50 State National List of Consumer Law Lawyers, click here

    This answer is for general purposes only and does not establish an attorney-client relationship. The law in your state may differ and your best answer will always come from a local attorney that you meet with privately. For a Free Online 50 State National List of Consumer Law Lawyers, click on this link ( and find one near you

  4. You really need to talk to a local consumer protection atty about your rights...

    Find someone good here:

  5. You could always dispute it. The issue is whether is would be removed from your credit. If the contract had warranties and they did not fulfill the warranty and now are reporting it, then you may have a cause of action. First you would need to apply for credit and it would be denied because of the offensive report. If the creditor was in compliance with the contract, then you would unlikely have a cause of action.

Lemon law topics

Top tips from attorneys

What others are asking

Can't find what you're looking for?

Post a free question on our public forum.

Ask a Question

- or -

Search for lawyers by reviews and ratings.

Find a Lawyer

Browse all legal topics