The amount of time that a repossession can linger on your credit report is seven years from the original delinquency date. This refers to the exact date you first missed a payment, not to the date your car was repossessed. The date that the lender ultimately took your vehicle has no bearing on the seven-year rule.
If your payments have been intermittent or if you have caught up on the back payments owed on your car or boat, it does not necessarily mean the lender can’t repossess it. Once you break the terms of your loan, the lender generally retains the right to repossess. In the end, there is no guarantee of a grace period unless it is spelled out in your loan contract.
The laws in each state vary, but most states don’t require lenders to give advance notice of repossession. The lender has the right to take possession of your car if it’s in your driveway. The Fair Debt Collection Practices Act (FDCPA), however, ensures that they can’t use physical force or break into your locked garage to retrieve it. Many U.S. states offer additional protections in relation to repossession, which makes it important to consult with a well-respected fair debt collection lawyer early on.
If your car or boat is repossessed, it will be included on your credit report. Repossession means your asset was seized due to missed payments, and it can be either voluntary or involuntary.
Voluntary repossession means that you voluntarily returned the vehicle because you could no longer afford to make the payments. Involuntary repossession, on the other hand, indicates that the lender had to take the vehicle from you physically.
While both can directly affect your credit score, the consequences of involuntary repossession are more significant. This can translate to a decrease of more than 100 points on your credit score, which can have long-term financial consequences.
Our seasoned fair debt collection attorneys at The Law Offices of Jibrael S. Hindi take pride in our reputation for sparing no effort on behalf of our clients’ rights and best interests, and we’ll do the same for you. The outcome of your case is important to your financial future, so please don’t delay contacting us online or giving our firm a call at 844-542-7235 for more information today.
Honor. Integrity. Care.
