The Complete Guide to Deleting Repossessions from Credit Reports

Hey credit heroes. Imagine waking up one day to find that your car is gone. Not just missing, but repossessed. A vehicle Repossession isn't just a bump in the road. It is a financial disaster that can cripple your credit and derail your daily life. But here's the thing. You don't have to accept it. You have the power to fight back. So buckle up, because today I'm going to share my three secrets to deleting repos from your credit reports. So you better stick around. My name is Daniel Rosen and welcome to Credit Repair Business secrets. In the 20 years since releasing my first credit repair software, I have helped thousands of businesses scale from the ground up. And I've experienced many of the same challenges that credit heroes face. And I've learned proven ways to overcome them and succeed. And of all the financial hardships you can face, the this one hurts a lot. It has a huge impact on your day to day life and it can tank your credit score. It's having your car repossessed. You not only lose your vehicle in the short term, but the hit you take on your credit report will make it harder and more expensive for you to get back on the road. But that doesn't mean you're powerless. Ok, let's get into exactly what a repossession is. It's when an auto dealer takes possession of your vehicle, sometimes without warning you in advance or without even having permission from the court. Vehicle repossession laws vary by state, and most vehicle purchase contracts include details about how and when your auto dealer can repossess your vehicle. Repossession usually occurs after you fall behind on your payments. You Now Depending on your contract, your lender may be able to start the repossession process after just the very first missed payment. Yeah, that's right. Now, there are two major types of repossessions, voluntary and involuntary. Voluntary is when you give your car back to the lender, usually because you can't afford to make the monthly payments. However, when people talk about repossession, they're usually talking about involuntary repossession. This is when the lender comes to take back the car. And if you've ever tried to dispute a repo on your credit report, you probably found out that they were generally pretty stubborn to get rid of. Repos are a little different from almost any other type of item on a credit report because of the little nuances that lie between the contract of the auto loans. But but as a credit hero, you have options. There are three Expert tactics that can really help you to permanently delete them. Number one, factual disputing. This typically works fairly easily, but it's a bit advanced. It only applies to loans that have gap insurance and that have been sold at auction after the repossession and then the balance is sold to a third party. It has to meet those two conditions or it doesn't work. Now, most vehicles finance from dealerships do have gap insurance. If you have gap insurance for the life of the vehicle, a prorated portion of the vehicle is covered if and only if the vehicle is considered a loss, a repossession is a loss. So when this happens, the refund is sent to the financing company. Now, the financing company receives this gap payment long after the account has been sold to the third party debt collection agency and it never updates the true balance of the loan on your credit report. And this means the balance is factually inaccurate. And that is the key to removing the repo using this strategy. Now, I know that's a lot of info, so I'm going to break it down into two steps. Now keep in mind, timing here is critical, so you need to complete both step number one and step number two on the very same day. Step number one is to demand the validation with a certified mail return receipt requested on the account with a third party debt collection agency. Chances are they'll 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 debt collector. For step two, you want to contact your gap company and request a refund for for the loss of the vehicle. Remember, you have to do this on the very same day as step one. They 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 that they made to the financing company. Still with me? Great. Next, you assemble a large certified mail envelope with several documents to send send to the credit bureaus. Be sure to include all these. A copy of the receipt from the gap company, A letter to the credit bureau explaining that the balance reported was not accurate. A copy of the validation demand that you sent to the third party debt collection agency. A copy of the signed return receipt from your debt validation letter and the response received from a third party debt collection agency that's showing the wrong balance. If the bureaus don't respond appropriately or if they respond with a stall letter, you may need to request a reinvestigation demand to know their method of verification or send them a Bureau warning letter. This process does take time and it usually works. But if you don't get the result you want, you may want to file a complaint with the cfpb, the FTC or or your state Attorney General, or even bring in an FCRA attorney and take them to court and you may wind up with a cash settlement. I mentioned a couple of specific letters that you should use and I want to make it super easy for you. The reinvestigation method of verification and Bureau warning letters are also free to download@creditrepaircloud.com discovery dispute letter templates and if this information is helpful for you, click down there on the thumbs up button so that more people will see this video Method Number two Credit Sales Discrepancy if the repo you're trying to remove doesn't fit all the criteria that I mentioned in Method Number one, a credit sale discrepancy is another proven removal option. It simply means that there's a minor detail issue in the terminology used to indicate the type of account listed on your credit report. So here's what happens. Auto dealerships are set up in one of two ways. Number one is an installment loan where your dealer lends you the money and then you pay the dealer in installments until the loan is paid in full. Or number two is a credit sale. This means the dealer sold the loan to a lender. Now, most dealers prefer credit sales because they get paid immediately as opposed to collecting interest over a long period of time with loans. So if you signed your documents at a dealership, there's about an 80% chance that this was a credit sale and not an installment loan. So take a good look at your credit report and see if it says loan. And if it does, which it usually does, you can factually dispute the repossession based solely on that specific factual error. For example, you might write that the account you're reporting is identified as an installment loan, which is factually incorrect. The true account type for this type of account is Credit Sale Agreement. State in your letter I have the right to an accurate credit file and discrepancies like this are unacceptable. Please remove this account from my credit file immediately. Be persistent and continue to follow up or file a complaint until that error is corrected. Method 3 post repo late Payment I jokingly call this the how the heck was I late Pay paying after you took the car strategy. If your vehicle has ever been repossessed, typically the vehicle is sold at auction for a fraction of what was owed. Once that happens, how in the world can the original creditor still report late payments? They shouldn't, but they often do, and that's the key to identifying a factual error and ultimately getting this removed. When this happens, simply dispute that error with pinpoint accuracy. Pointing out that the vehicle was repossessed and defaulting on payments at this point is inaccurate. It does take patience and pressure, but stay persistent and use these three secrets to delete repos and get back on the road to good credit. And here's my final point. Repossessions are some of the most damaging items that can appear on credit reports, but that also means that removing them can have the greatest impact. Disputing a repossession may not be the simplest process, but boosting a score and changing a life is always worth the effort. And I'll end by saying if you want to learn more expert strategies, check out my tips to remove late payments. And if you'd like to improve your credit score and discover how to earn extra income repairing Credit for others, check out my brand new Start Start Repairing Credit Challenge. So sign up right now@startrepairingcredit.com and keep changing lives.