Daniel RosenCredit Repair Business Mentor | Insights from 250+ Podcasts

Use this to remove a repo from your credit report 👀

5 Feb 2025 · 1 min

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Short explainer by Daniel Rosen on how dealer-sold gap insurance interacts with vehicle repossession and credit reporting. He states that gap insurance pays the financing company when a vehicle is declared a loss (including repossession), but lenders may receive the payment after the account is sold and fail to update the loan balance on the consumer’s credit report — creating a factually inaccurate balance that can be used to challenge and remove the repossession entry.

Chapters

Most vehicles financed 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.