When my car was repo-ed in 2010 they sold it for more than it was worth, so I got $800 back. I started monitoring my credit with equifax early last year (2014) and I've noticed my score fluctuating and having trouble going over a 680. I called equifax and they pointed out Wells Fargo was still reporting that account as a charge off every month to equifax since 2011. I'm not sure what is being reported to the other two (experian & transunion). This can't be legal, is it? They got their money that was due for the car and sent the rest to me. Can I sue? I've had to accept higher interest rates due to my lower credit score on my car purchases this year. I had another charge off on a credit card around the same time and they finished reporting it as a charge off when the balance was paid off.
If your credit report is not correct, file a dispute with the credit bureus. It should be reported accurately and the dispute will challenge and force them to make it accurate
This is for general information only. Nothing in this information should be construed as creating an attorney-client relationship nor shall any of this information be construed as providing legal advice. Laws change over time and differ from state to state. These answers are based on California Law.Applicability of the legal principles discussed may differ substantially in individual situations. You should not act upon the information presented herein without consulting an attorney about your particular situation. No attorney-client relationship is established.
A chargeoff implies a loss on the account and there isn't one in this case. Depending on what is being reported, Wells Fargo may be violating the Fair Credit Reporting Act. You need to first dispute the reporting with all 3 credit bureaus, in writing. Send a letter rather than use the online dispute process. Specifically point out that there was no deficiency and that you received money back from the sale of the collateral. If you have documentation of the fact, enclose a copy. Keep a copy of what you send to each bureau. It if is not corrected in 30 days, you can file suit. A consumer lawyer will generally take a good FCRA case for the statutory fee award available.
For future reference, if you cannot make payments on a car you are better off selling it yourself than allowing it to be repossessed. The creditors generally sell cars at auction for low prices. If you got $800 back from the creditor's sale you would have gotten more from selling it yourself, and not had the credit problem.
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