There is Credit Life after Auto Repossession
Repo Man, a true story
One Saturday evening the Johnson family entertained a house full of family celebrating their grandmother's 80th birthday when it happened. A burly man appeared at the door and explained to Mrs. Johnson that he had been sent by the bank to repossess the Toyota Van they had bought six months earlier.The repo man didn't care that a payment for the full amount due had been sent the week before; his job was to leave with the van.
No one applies for an auto loan and purchases a car expecting Repo Man to show up a few months or years down the road. But then, no one expects job loss, illness or other emergencies that can play havoc with their financial lives. All it takes is a brief period of financial stress and bang! Repo Man is pounding on their door.
Your Rights
Each state has its own laws regarding when, where and under what circumstances a creditor can repossess a vehicle. However, all states require that a loan must be in default and the borrower be notified in writing fifteen days before a repossession is ordered. It pays to contact the lender or a lawyer while the vehicle is still in your possession. Lenders will often allow you to catch up on late payments if you keep them informed of your progress. Do your best to deal with the credit problem as soon as it becomes an issue.
They Took My Car!
If an agreeable arrangement cannot be worked out and a repossession becomes necessary, you still have options. A lender must give you the chance to pay off the balance of the loan and any repossession fees incurred before the disposal of the car. This gives you one last opportunity to redeem your vehicle. If you choose not to take this option, the car will be sold and any balance remaining after the sale may still be due from you.How a Car Repo Effects Your Credit
Once a repossession occurs, it is recorded on your credit report and stays there regardless of whether you are able to reclaim the vehicle. This negative mark will last for seven years, making approval for future loans difficult and can result in inflated interest rates. Potential lenders see repossessions as a sign of financial irresponsibility, regardless of the circumstances behind them.
Removing Repossessions from a Credit Report
Many people have found that credit repair firms can provide the help they need in disputing mistaken credit report information. Disputing items on a credit report is a consumer's explicit right under the Fair Credit Reporting Act (FCRA.) Credit report repair is as legal as pleading "not guilty" in a court of law. It is entirely within an individual's right, and the freedom to do so is protected by law.For a repossession to be verified on your credit report, it must be 100% accurate. Adding pickup, storage, towing, sales and other fees, there are often errors and inconsistencies in the information that is reported to the credit bureaus. It is not unusual for a reputable credit repair agency to legally and successfully remove repossessions from a credit report.
Which Credit Report Repair company is best?
The Consumer Advocate Association has compiled a chart comparing the top Credit Report Repair companies in America. See their results below:
There is hope. Thousands of consumers have learned firsthand how legitimate