Secret Strategies for Removing Repos from Credit Reports

Hey, credit heroes. Of all the financial hardships that you can face, the one that has the most immediate impact on your day to day life is vehicle repossession. Having your car repossessed, it can be devastating. You not only lose your car in the short term, but the hit to your credit report will make it harder and more expensive for for you to get back on the road. Basically, repossessions start a domino effect that can take years to recover from. That's why today I'm going to teach you all my secrets for removing repos from credit reports. So you better stick around.

My name is Daniel Rosen, and welcome to Credit Repair Business Secrets.

Did you know that There are roughly 288 million registered vehicles in the United States? And in a country with 330 million people, that's nearly one vehicle per person. Now, for some of these people, having a car is a luxury to play with on the weekends. But for most of us, especially people like me living here in Los Angeles, you need to have a car to survive. So today I'm going to talk about repossessions and how to eliminate them from credit reports. Now, before we get into this, this podcast is brought to you by the Credit Hero Challenge. If you want me to hold you by the hand as you launch your very own credit repair business, go to creditherochallenge.com and sign up now. And I love this part. Every episode, I am featuring one of our credit heroes inside our credit repair cloud Facebook community so that you could see firsthand what real people are doing as they launch and grow their business. And today's spotlight is on Tamara Banks. Tamara recently announced in the community that she found her calling and she started her credit repair business. And she wrote this. My goal is to sincerely, wholeheartedly change lives with credit repair. That's why I name my business Sincere Credit Solvers. And I not only want to repair credit, but I also want to educate my clients. We all know being knowledgeable about credit is the key to financial freedom. Wow, Tamara, congratulations on starting your business. And, and I think Sincere Credit Solvers is a fantastic business name. And I'm so glad that you took part in our Credit Hero Challenge. And we're going to be here with you every step of the way as you grow your business. And you're right that being knowledgeable is the key to financial freedom. That's why today I'm going to give you some slightly advanced but essential info that can help you to remove repos from credit reports. So let's get into this now, what exactly is a repossession? A repossession is when a bank or financial institution takes possession of your car after you fall behind on your payments. And it's a reminder that you don't actually own the vehicle they do. Your vehicle purchase contract should include details about how and and when your auto lender can repossess your car. And you could have your car repossessed within three months of defaulting on your loan. And depending on your contract, your lender may be able to start the repossession process right after the first payment is missed. But also be aware, sometimes auto lenders repossess vehicles without warning the customer at all. Okay? And sometimes they repossess vehicles without even having permission from the court. Now, vehicle repossession laws, they vary by state, and there are two major types of repossession, voluntary and involuntary. Now, voluntary repossession is when you give your car back to the lender, usually because you can't afford to make the monthly payments. And involuntary repossession is the type that most people are familiar with. That's when the lender comes to take back your vehicle and you walk out your door and you see this guy here rolling down the street with your car, and you're upset, and it is horrible. Now, repossessions are different from almost any other type of item that are on a credit report because of the little nuances that are in the auto loan contracts. Now, anyone who has ever fought to remove a repo from a credit report, they know how tricky they can be to eliminate. But it's not impossible. You have options. Here's why this is important. Repossessions don't just leave you without a car. No, they negatively impact your credit score for years to come, making it harder to qualify for another car, a loan, a credit card, or a mortgage, depending on the source. There are between 1 and a half and 2 million vehicles repossessed in the United States every year. So that means there are between four and five thousand repossessions and every single day. And that's an astounding number of potential clients who are in desperate need of help with their credit. From. You see, these repossessions, they impact lives in so many ways. It could be a parent who now can't drive their child to school or a workman who can't take a job because he no longer has his truck. So removing these repossessions, they'll get your clients back on the road and back on their feet. So here's what you need to know. I'm going to give you three proven tactics that can help you to permanently remove repossessions from credit reports. Now, the first tactic is factual dispute. Factual dispute usually works like a charm, but it's a little advanced and it only applies when the loans. Let's clear this up. It only applies when the loans have gap insurance. If the vehicle was sold at an auction after the repossession, or if the balance was sold. To a third party, it must meet all of these conditions or you are wasting your time. Now, here's the good news. Most vehicles financed from dealerships, they have gap insurance, okay? They have gap insurance for the entire life of the vehicle. A prorated portion of the vehicle is covered if and only if the vehicle is is considered a loss. Now, a repossession is a loss, okay? So when this happens, the refund is sent to the financing company. And the financing company, they receive this gap payment long after the account is sold to a third party debt collection agency. And they never update the true balance of the loan on your credit report. So that means the balance on your credit report is inaccurate, which means it is factually incorrect. And that, my friend, is the key to removing the repo using the factual dispute strategy. Now, you might be wondering, how do you actually file the dispute? Okay, here's how. First, remember, with all credit repair strategies, timing is critical, all right? So you must complete steps one and two in the very same day. So here's step one. You demand validation with certified mail return receipt on the account with the third party debt collection agency. Now, chances are they're going to respond with the wrong balance because the gap insurance paid the financing company and the financing company did not report the payment to the third party party debt collector. Do you see what I mean when I said this is a little advanced. Now, it's okay if you need to pause or rewind to review what I just said. This is all very important and I want to make sure that you learn it. And for step two, and be sure to do this on the same day, contact the gap company and request a refund for the loss of the vehicle. Now, here's what's going to happen. The gap company will immediately tell you that a payment has already been made to the financing company. So you need to ask for proof. And they will send you a receipt for the payment made to the financing company. And now we move on to step number three. You get a large envelope, send it by certified mail, return receipt, and send it to the credit bureaus. And in that envelope, you want to include a copy of the receipt from the GATT company, a letter to the bureau explaining that the balance reported is not accurate, a copy of the validation demand that you sent to the third party debt collection agency, and also include the response they received from from the third party debt collection agency showing the wrong balance. Now, this process, it usually results in a deletion. And if not, you should file a complaint with the CFPB and then resend everything to the bureaus again, but this time include a copy of the CFPB complaint about the bureaus. Okay. And demand removal. And you might also send the same packet to the third party debt collection agency. Cool, right? Okay, I've got another one for you. And I like to call this second tactic credit sale discrepancy. Here's how this works. If the repossession that you're trying to remove, if it doesn't fit the criteria for the tactic that I just went over, the credit sale discrepancy is another factual dispute tactic that's often very successful. And it simply means there is a minor detail issue in the terminology used to indicate the type of account that's listed on your report. Okay, See auto dealerships. They're set up to make sales in one of two ways. An installment loan, a credit sale. Now, an installment loan, it means that the dealer lends you money and then you pay the dealer in installments until the loan is paid in full. And a credit sale means the dealer sold the loan to a lender. Now, most dealers prefer credit sales because then they get paid immediately as opposed to collecting interest over a long period of time or with a loan. Okay? They want their money, so they usually do a credit sale. Now, if you or your clients signed your documents at a dealership, there's about an 80% chance that it is a credit sale and not an installment loan. So take a good look at your credit report, okay? And if it says loan, and it usually does, then you can factually dispute the repossession based solely on that specific factual error of how it's listed on the report. Now remember, if you are confident about the fact that it is being misreported, don't give up. Even if they verify it. Okay, don't give up. Sometimes this takes pressure and persistence. You can always send more letters. You can always follow up with a creditor or a bureau warning letter warning them that you're about to report them. You can file complaints and follow up again. And even then, if they are still unwilling to correct your report, you always have the option of contacting an FCRA attorney who may be able to not only permanently remove the repo, but possibly settle and put cash in your client's pocket. Okay, and I've got one more for you. This last tactic I call how the heck was I late paying after you took my car? Okay, so if you've ever dealt with a repossession, typically the vehicle is sold at auction for a fraction of what is owed, often leaving a deficiency balance. Now, once that happens, you ask yourself, how in the world can the original creditor still report late payments? Well, they shouldn't, but they often do. And that is the key to identifying a factual error and ultimately getting it removed. See, the reporting of late payments after a repossession occurs, that is an error. And when this happens, simply dispute the error with pinpoint accuracy. You want to point out that the vehicle was repossessed. You want to, and therefore defaulting on the payments at this point is inaccurate. Pretty cool, right? Anyways, these are three proven tactics for removing repossessions from credit reports and they really work. And if you didn't catch everything that I just said, save this podcast and relisten to it. Okay? Re listen and take notes. Repossessions impact people's lives too much for this to not be handled quickly. Quickly and with the best possible care. And when you get your clients back on the road and back on their feet, they are going to be grateful. Repossessions and other high level negative items are all covered in our Credit Repair Cloud Advanced Disputing course. And we have all the letters that I just talked about inside Credit Repair Cloud. So if you don't already have a credit repair Cloud account, check it out. It's the software that most credit repair businesses in America run on and you can have a 30 day free trial at creditrepaircloud.com freetrial. And if you'd like me to hold you by the hand as you launch your very own credit repair business, check out our Credit Hero Challenge. It's a live experience that has helped tons of credit heroes to get their first clients to get certified in disputing and to gain confidence as they launch their credit repair business on a solid foundation so they can change a whole lot of lives and make a great living in the process. And we're starting the next challenge in just a couple days, so you want to join before the doors close or you're going to have a long wait until the next one, so sign up now. @creditherochallenge.com and if you're finding value in the things that I'm sharing on this podcast, be sure to click below to subscribe. And if you're feeling kind, rate me. Give me a review. Give me five stars. Ask a question, Leave a comment. Because I read each and every one of them and I will see you on the next episode. And until then, be a Credit Hero and keep changing lives. Hey, everybody, it's Daniel again, and really quick.

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And it is a challenge that we call the Credit Hero Challenge. If you're just planning out your business or you're just getting it started and you dream of having a successful business of your own, so you can quit your 9 to 5 and fire your boss and have financial freedom, or so you can add another revenue stream to your existing business, if that's your dream, you need to get into this challenge.

We.

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