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Monday, March 2, 2009

Repossession on Credit Report

By Justin Hutto

A repossession on your credit report is a very severe mark. It will cause you to pay outrageous interest rates and big down payments.

A repossession will remain on your credit report for seven years. Approval for any new lines of credit will be very difficult with this mark.

However you can remove this mark from your credit report. First let us explain how the repossession procedure works.

When your car is taken and then re sold if the lender takes a loss you will be responsible for repaying that. You will be sued and if you are found responsible a deficiency judgment will be placed against you.

The lender will report the repossession on your credit and if you have a deficiency judgment it also will be reported. Having either one of these marks on your credit will make it next to impossible to get approval for future lines of credit.

We suggest you wait until the car is resold to remove a repossession. Also, wait to see if the lender sues you for any damages or loss.

Then send a dispute letter to the bureaus to dispute the repossession on your report.

You can hire a service to do it on your behalf or write the letter yourself. This letter must present a reason as to why the mark is incorrect.

Once the bureaus receive it they will conduct an investigation into the listing. They will contact the lender and ask them to verify that the account is; yours, the reported dates, and the balance.

We advise waiting until the lender receives some type of payment. If some form of payment has been received, the lender is much less likely to spend the time or money verifying the item with the bureaus. In addition, an item must be removed from your credit report that is not verified.

Deficiency judgment marks should be disputed as well. It is reported that the bureaus do not check public records when investigating a mark, which is where the bureau would find verification of a deficiency judgment.

In summing up, repossessions are removed from credit reports every day. You do not have to feel embarrassed or pay high interest rates every time your credit is run.

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