Voluntary Repossession Charge off / Bad debt

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Stormie Luebke

• March 15, 2023 07:21

I agreed to voluntary repossession because I fell behind on payments due to hospitalization. I believed everything was handled amicably and was told my car would go to auction to be sold after I gave it back. Car was sold for more than my balance and fees and lender sent me the surplus. I was told I no longer owed a balance and because of my situation it would be taken off of my credit reports. Here we are 7 months later and not only is it still on my reports but they have reported it as a charge off / bad debt with a balance still owed! The surplus check was almost 2k plus they sent a loaded debit card a couple months ago for another $117 for some fees that I was overcharged. What do I do? How do I get this fixed?

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• Official comment

  

  Victor D

  • March 15, 2023 19:11

  Thanks for posting to the NerdWallet Community Forum, Stormie!

   

  We're sorry to hear that there may be incorrect information on your credit report. We have a couple of informative articles that may help you: 

   

  • How Voluntary Repossession Works - When you return a car you can’t afford to the lender, it’s called voluntary repossession. It still hurts your credit.
  • How to Handle Vehicle Repossession - NerdWallet

   

  In general, if the derogatory mark or debt you're writing in about is valid, it can be difficult to have it removed from your credit report. Depending on the derogatory marks and debts, it may take seven to ten years for them to drop off your credit report. Here's a resource with more information: How to Get a Collections Stain Off Your Credit Report.

   

  However, if this derogatory mark is an error, you should be able to get it removed from your credit report. It can take some persistence and time, but it is possible to do. For more information on how to start a dispute, I recommend checking out this resource with more details: How to Dispute Credit Report Errors. 

   

  Best Regards,

  Victor

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