It can be financially devastating to have a vehicle or other item repossessed, not to mention embarrassing! The repercussion of repossessed items can mean different things to different people. Repossession of a vehicle usually means loss of freedom to the owner. Repossession (foreclosure) of a home can mean the loss of family memories. Beyond these emotions, a repossession will trigger the downward spiral of your credit score!
It may seem like the end of the world, but it really isn’t! It does get better. And, when it does, you should consider beginning to rebuild your credit immediately. And, the place to start is your credit report. You should request copies of your credit report from the three major credit reporting agencies – Equifax, Experian, and TransUnion. These credit reporting agencies are legally required to provide you with one free copy of your credit history every twelve months.
When you have received all three of your credit reports, you should schedule some time to sit down with all three to review them. Repossession entries will include an itemized list of all fees related to the repossession, such as storage and towing. Gather all of the receipts you have which relate to the repossession and compare them to the amounts listed on your credit report. If any of these amounts are incorrectly reported on your credit report, you should dispute the items with the credit reporting agencies.
If you find any discrepancies on one or more of your credit reports, you should write a dispute letter to the relevant credit reporting bureaus explaining the errors and requesting removal of the repossession entry. You should include a copy of your credit report with the errors highlighted as well as the receipts which correspond with the errors on the credit report. Also, be sure to retain copies of all letters you send.
Upon receipt of your dispute letter, the credit reporting bureaus have 30 days to verify the repossession entry. The credit reporting bureaus will contact the creditor and attempt to verify that the information reported on your credit report is accurate. If the creditor cannot verify this information, for whatever reason, within the stated time frame, the credit reporting bureaus must by law remove the entry. A letter should be sent to you by the credit reporting agencies which explains what action was or was not taken and why. A repossession entry, if not removed, will remain for seven years on your credit report.
If disputing the repossession entry with the credit reporting agencies does not work, you might try contacting your creditor to negotiate the removal or improvement of the repossession entry. To do this, you would want to call or write your creditor and request removal of the repossession entry in exchange for partial payment or payment in full. If an agreement is reached, be sure to obtain the agreement in writing along with both of your signatures.
I know that it is hard to deal with the emotional side of repossession; however, you can get through this and, in time, regain your financial footing. Times are tough across the country and you are not alone. Just move past this and begin to repair your credit – the sooner, the better!
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