How to Get a Car Repossession Removed From a Credit Report
If you want to purchase a car but don't have the cash, you can apply for an auto loan. This is an installment loan that allows you to make a set payment each month towards the outstanding balance. If you fail to make payments, however, the bank may take ownership of the car. This is called a repossession. It is a negative item on your credit report. Under the Fair Credit Reporting Act, negative account information can only remain on your report for up to seven years. If you have a repossession on your report that's past the statue of limitations, you have the right under the FCRA to file a dispute with the bureau and have it removed.
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Instructions
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Order your credit report. The Fair and Accurate Credit Transaction Act gives consumers the right to request one free credit report each year from the credit bureaus: TransUnion, Equifax and Experian. Order the report from annualcreditreport.com. You can also order it at the bureau's website, by phone or mail.
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Read the report and check for errors. Look over the "Negative Accounts" section to see if the repossession in question still appears on the report. Check back often as the bureaus frequently update their data.
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File an online dispute. The online form at the bureau's website allows you to specify the repossession you're disputing and why. You can also file a dispute by phone or mail. A mailed dispute should include a dispute letter that details the items in dispute, the reasons for the dispute and any supporting documentation.
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Print your dispute form if you filed online. Also print your credit report. FACTA gives you one free report but if you access it online yet fail to print it, the bureau may charge you a fee to view it again at a later date.
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Wait to hear back from the bureaus. Under the FCRA, bureaus have up to 30 days to investigate your dispute and make corrections. Results for a dispute filed online are sent via email. Results for a dispute submitted by mail or phone are sent by regular mail. The bureau will also include an updated copy of your report that shows the removal of the repossession.
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Tips & Warnings
By law, credit bureaus are not required to remove accurate negative information that is within the statue of limitations.
Never order your credit report using a public computer. You could become a victim of identity theft if you do. Only use a computer that you trust.
References
- Equifax: FCRA Summary of Rights
- Federal Trade Commission: A Summary of Your Rights Under the Fair Credit Reporting Act
- Federal Deposit Insurance Corporation: Credit Reports and Scores
- Equifax: Length of Credit History
- Privacyrights.org: Sample Dispute Letter
- Nolo.com: Repossession - What Creditors Can and Cannot Take
