Does A Reposesssion Effect My Credit Rating?

Repossessions and credit ratings

New Jersey Consumer Lawyer and Repossession

One of the most troublesome aspects of repossession is a consumers’ credit rating. Under the Fair Credit Reporting Act and all applicable industry standards, a finance company is obligated to report information to the credit reporting bureaus if they in fact report information. This means that if a finance company has not received payments, has received late payments or repossessed the vehicle, they are required to report this information accurately and completely to the credit reporting agencies, whether it is Experian, TransUnion or Equifax. Thus, a repossession or late payments seriously affect one’s credit rating and seriously affect the ability of an individual to obtain a loan or obtain a lower interest rate. This is why if a consumer has a dispute with the finance company, it is better to pay the difference and sue the finance company rather than be late on a payment from either repossession or otherwise get into a dispute which ultimately will be reported on the consumers’ credit report. It is much easier to keep this information off the credit report and sue the finance company than attempt to remove it from their credit report after it has worked its way through the system.