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Can I take action against a finance company for reporting a settled debt to credit bureaus for 3 years as unpaid?

Massillon, OH |

I bought a car at JD Byrider years ago, fell behind on payments and they wouldn't repossess the car. CNAC, the finance company, then hired an attorney and sued me which resulted in wage garnishment. The car was eventually paid off (March 2010) and the title was mailed to me. I've since sold the car and no longer have a title. I received a letter this week stating that they are willing to settle my $3077 debt for $750. So this has been reported to all major credit bureaus for 3 years. I am outraged! I called CNAC and they are asking me to prove by show of paystubs or title that the car is paid off. Is there anything I can do to redeem my credit rating. This company put me through the ringer for years and now this. I thought it was all behind me! <SMH>

Attorney Answers 3

  1. Contact a Fair Debt Collection Practices Act attorney. It sounds like you may have a claim under that Act, or possibly the Fair Credit Reporting Act.

  2. If the debt is listed on your credit report, you can dispute the debt with the CREDIT BUREAU. The credit bureaus will send a response. If it is not removed from credit report, contact a consumer attorney at you can sue for damages.

    The answer given is for informational purposes only and does not constitute legal advice. Dwight Bowen is a bankruptcy and consumer attorney and may be contacted at (404) 880-3310.

  3. Frankly, I think you are making a mountain out of a molehill. It is the fact that you originally got behind on payments that has done the major damage to your credit, and this minor dispute over whether or not you owe additional money can easily be resolved by filing a dispute with the credit bureaus. The Fair Credit Reporting Act places the burden on you to correct inaccurate information before you are able to sue. I am posting a link to this law below so you can review it for yourself. Hope this perspective helps!

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