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Should I dispute a repossession on my credit report?

Lecanto, FL |

I voluntarily turned my vehicle in to the lender after I found out it was up for repossession in 2009. I was looking at my credit report the other day in which the account says its charged off and I owe them over 10,000.00. They sold my vehicle at auction I'm assuming which brought my pay off down to 4,000.00 but over time it gained interest. The lender never contacted me to inform me of the sell or to set up any kind of payment arrangements with me. I just found this out the other day. Should I dispute this due to the fact I was not informed of this information or should I contact the lender and see if they could drop it back to 4,000.00 again and just make payments on that?

Attorney Answers 3

  1. Best answer

    The lender should not be entitled to a deficiency if you were not sent a notice of sale, etc. Thus, although the repossession reporting may be accurate, the amount of the debt may not be. If you would like an instructional dispute letter form, you can email me at You may also want to send the creditor a validation notice. Make sure you ask for a copy of that form as well. I wish you the best in the future.

    If this information has been helpful, please check the thumbs up tab below. Disclaimer: The above is intended to give you some insight into various legal topics. This information is not intended as legal advice, but rather an attempt to provide helpful topical information. Please consult a lawyer as to the specific circumstances of your case. Again, this is not to be considered legal advice nor does an attorney-client relationship exist. If there are more facts that you overlooked and did not include in your initial question and you would like to email me, you may send an email to Steven M. Fahlgren Attorney, Arbitrator and Certified Circuit Civil Mediator Law Offices of Steven M. Fahlgren, P.A. Phone: (904) 845-2255 Phone: (407) 852-1711

  2. No requirement exists that a creditor actually enforce its rights. As such, it really doesn't matter if the creditor informed you. The issue with a credit report is whether the entry is accurate.

    Having said that, no harm will come if you try to dispute the entry and roll the dice the creditor will not verify the information. Your first move is to dispute the entry with the credit reporting agencies and see what happens.

  3. It is an urban myth that there is something better about a voluntary return of property to a creditor than a repossession in the stealth of night. For credit purposes, it is a distinction with no real difference. Typically the creditor is required to inform you of the sale of the property but unless you can show that you were in a position to pay off the vehicle, it is a right without any meaningful remedy. If the statute of limitations hasn't expired on collecting this debt, I would wait until you have lump sum of cash before making a settlement offer. Settling this debt will not, surprisingly, help your credit. Hope this perspective helps!

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