In 2005 I financed some furniture and was making the payments on time for a while. Money got tight and I was late in payment for a couple months in a row. I ended up moving out of state and didn’t need the furniture anymore so I returned it. A while back i found out that it’s considered a repossession. What can I do, besides wait 7 years, to get it removed from my credit report because it’s brought my score down a lot. Thanks
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You cannot remove that from your credit report.
Sorry but as long as the information is correct it can not be removed per the Fair Credit Reporting Act (Federal law) derogatory accounts show for 7-years from the date of first delinquency which works out to 7-years and 180-days weather the accounts are paid or not.
This is why they call it credit history.
Well, here’s the thing:
Let’s say you bought the furniture for $5000. You paid $1000 on it, then you returned it. They furniture company now sells it for $2000. That means that the furniture company must report that they sold it, and for what amount they sold it, which means you no longer owe $4000 on it, but $2000.
If you can pay the $2000, or even perhaps make an offering comprise to pay $1000 to settle the account, that will show on your credit that even though it is a voluntary repo, it has been paid for settled. This may NOT raise your FICO, but creditors who look at your credit report will see it and take it into account.
I know with vehicles, that if you have a car that you owe $5k on, you return it as a voluntary repo, the car company sells it for $7k, that repo is supposed to come off of your credit because the debt has been satisfied, and then some.
Do look at the fair debt collections act of 1974, as well as the fair credit reporting act of 1974 online. Then you will know what you can and cannot do in this case, and in the future.
Good luck to you. That really sucks.
Sorry you are in this bind. However, there is really no way to get this off of your report. The bottom line is that you borrowed money, entered into a contract, and did not live up to the agreement. The bank loaned you money, not furniture. They really have no interest in getting back the goods. All they want is repayment of the debt. This will be on your credit report for 7 years has a loan default.
Also in the future, please note that there is no difference between a voluntary repossession and a repossession. They only difference is that they don’t have to come get it.
You mentioned in your questions that you “financed some furniture” but you ended up returning the future because you moved. Was this a regular finance contract that you signed to purchase furniture, or was it a rent-to-own place that you were making payments on, but did not fulfill the obligations that you would pay them $X.XX for some many months and you returned the furniture? If they are showing a repossession and you owe a balance, you have a few options that have not been mentioned in prior posts.
You can call the company that has reported the repossession on your credit and offer to pay them, only if the remove the negative mark. Don’t pay them and have your credit report showing as a “paid repossession.” While this will look better to new creditors, it still will show on your credit report for years. If you agree to pay the balance, tell them you will do so only if they will remove the negative mark. Make sure if you get this agreement, it is in writing prior to you making the payment.
Ifyou have not disputed this item with the credit reporting agencies, I would do so. While it’s not illegal for you to dispute what are valid and legitimate items on your credit report, you may be able to have the item removed without having to pay.
You can contact any of the three credit reporting agencies and ask for the written contract for that transaction. The company that reported this has 30 days to provide you with this information. If they cannot, the item has to be removed under the Fair Credit Reporting Act (FCRA). And, then you can have all three reporting agencies update your credit report.
If the company does provide the documentation within 30 days, then you should negotiate with them.
Also, if the repossession item is with a collection agency, and not the original lender, you should also dispute the item, and ask for the original documentation. If they cannot produce the original signed contract/document within the 30 day period, the item has to be removed. However, at a later date, if they can prove the item is yours, it can be returned to your credit report. However, that rarely happens.
In todays tough times in this recession, credit is your most precious commodity. Keeping stellar credit or repairing your credit is the most important item a consumer can do. With poor or dinged credit, car loans become much more expensive, and it becomes almost impossible to obtain credit cards (or any other unsecured debt), and mortgages to purchase a home are much more difficult unless you have 20% down.
Good luck! Tim