Repossessions are a blemish on your credit report that you likely want removed. The first thing you need to know is whether the repossession was reported accurately. Repossessions can be legally removed from your credit report if the reporting was inaccurate.

Step 1: Pull your three credit reports and read the repossession report line

Go to www.annualcreditreport.com and pull your reports from the three credit bureaus. Look at everything reported about your repossession.

• The date your account was reported delinquent

• The account balance

• The creditor

• Did the Creditor change from the original lender

• Is the account reported multiple times

• Is the account reported more than once under different names

If you find something that does not agree with your account, then you have something you can dispute.

Step 2: Disputing errors you have found

• If you agree the repossession occurred, then a company can not remove it and it would be unethical for them to do so.

• Is anything in the reporting inaccurate? Inaccurate dates may lead to balance and/or listing errors. A deficiency balance may not match the balance shown in your documentation. There could be multiple listings for the same debt. These are all grounds for dispute even if the underlying debt is legitimate.

Identifying an error gives you the opportunity to correct the reporting.

Step 3: Submit a formal dispute to correct the inaccurate reporting.

You have the right to dispute the reporting for free.

• Equifax: https://www.equifax.com/personal/credit-report-services

• Experian: https://www.experian.com/disputes

• TransUnion: transunion.com/credit-disputes

Provide copies of supporting documents to help explain your position. Creditors must provide verification to the bureaus within the 30 day time frame. Absent verification, the disputed information must be removed.

Step 4: Correct Information? Offer Goodwill Letter to Original Lender

Only send this letter to the lender that repossessed your vehicle. This letter will not be effective if you send it to a collections agency that bought the debt later. This letter will not always work, but it will increase your chances if:

• You previously made on-time payments to the lender.

• There was an obvious reason for your inability to pay (i.e., job loss, illness, death, etc.)

• You work and live in the same area as the lender.

Step 5: Negotiate a Pay For Delete for Related Collections Accounts

Since the collections agency bought the debt for less than what the debt originally was, they may be willing to accept less than the full amount to remove the collection from your credit report. To attempt this:

1. Contact the collections agency.

2. Offer to pay a lesser amount, or the full amount, to have the collection removed.

3. Ask the collections agency to agree to this in writing. Representatives for collections agencies may make promises to you over the phone, but these promises may not be true.

4. After you pay the collection and it is removed, confirm removal in 30-45 days by checking your credit report and disputing it again if it is still there. Collection agencies sometimes fail to follow up with the credit bureaus to remove collection accounts after they have been paid.

Not all collection agencies are willing to remove collection accounts after they have been paid. This only applies to the collection accounts, not the initial collections or ‘repos’ themselves.

Step 6: Focus on lessening the effects of the repo while it ages

In the case that there is nothing else that can be disputed or negotiated to remove the collection account, there are other things that can be done to improve your credit in the meantime. These include:

• Continuously making on-time payments.

• Maintaining a low credit card balance

• Improving your credit score by obtaining new credit

• Avoiding new credit requests

While the repo collection will still be on your credit report for 7 years, there are ways to improve your credit score in the meantime by showing that you are financially responsible. Repo collections will be removed from your credit report after 7 years, even if they are still on your credit report. Therefore, it is not a complete loss.

Step 7: Weigh the costs and benefits of outsourcing

Nothing in this post requires you to spend money. Resolving disputes is free. So is writing a goodwill letter. Pay-for-delete negotiations require no financial outlay and are a simple matter of patience and agreeing to a contract. So when do most people enlist the aid of a credit repair company? When:

• They have multiple negative items on their report (not just the repo)

• They want to ensure that the Credit Bureau is working on their Good/Negative items.

• They are trying to rebuild their credit for reasons other than just the repo item. i.e., trying to build credit to take out a business loan, personal loan, etc.

If any of the above is the case for you, then a credit repair company like Heads Up Financials may be worth looking into because they craft a custom financial plan for you and include the removal of the repo item as part of that plan.

What to Expect at Each Step

Frequently asked questions

Can I remove an accurate repo by disputing it?

Not through a dispute. Only unverifiable info can be removed. The only way to ask a lender to remove info is through a goodwill adjustment. Goodwill adjustments are 100% discretionary and will not remove accurate info.

Will a dispute by a collection agency be treated differently than a dispute by me?

A collection agency dispute will be handled the same as an individual dispute. You are paying for time and hassle.

What should I do if a collection agency refuses to agree to pay-for-delete?

You should not pay for deletion unless there is a written agreement to remove the collection from your report.

Is it advisable to dispute something I am not certain is inaccurate?

Dispute only what you are certain is inaccurate. Disputing many things you are not certain about can be flagged as frivolous.