Sample Letter to Remove Repossession from Credit Report (and how to use it)
A repossession on your credit report can cause serious problems. Loan denials, higher interest rates, and lost job and housing opportunities are all real risks when you have this type of negative mark.
That’s why it’s important to know exactly what your options are for getting it removed. In this guide, I’ll explain your rights under the Fair Credit Reporting Act (FCRA), how your strategy changes if the repossession is accurate versus inaccurate, and how to get my free sample dispute letter you can customize for your own case.
If the Repossession Is Inaccurate
If the repossession on your credit report is unverifiable, outdated or inaccurate, then you have strong legal protections under the FCRA. The law is on your side in this situation and the key is to understand what you need to do in order to get the error fixed.
The first step is to dispute the error directly with the three major credit bureaus - Equifax, Experian and Trans Union. This will start the statutory clock of 30 days for the credit bureaus to investigate your dispute. If they cannot verify the repossession with the lender, they must delete it from your file.
The dispute process is not overly complicated but there are certain best practices you should be aware of if you’re going to do it yourself. I break the steps down in my article How to Fix Credit Report Mistakes which I recommend you check out. If the repossession is still reporting on your credit report after the 30-day statutory period, you can file a lawsuit against any credit bureau or lender reporting the inaccuracy.
Sample letter to Remove Repossession from Credit Report
The sample provided below is just that - a template, and using it does not create an attorney–client relationship. You are using it at your own risk.
Disclaimers aside, this letter should give you what you need to properly dispute an inaccurate repossession on your credit report. Be sure to replace the placeholders with your specific details where indicated.
Keep in mind that the above dispute letter only applies to inaccurate repossessions. As explained in the previous section, if the repossession never happened, contains incorrect information or is outdated, then disputing the trade line is the correct course of action.
If however, the repossession is accurate then you need to change your strategy and the way you think about this problem.
If the Repossession Is Accurate
If the repossession on your credit report is accurate, you are unlikely to succeed in demanding the credit bureaus to remove it. Your time and energy will be better spent exploring alternative options.
First, determine how much longer the repossession will remain on your credit report. Under the FCRA, negative information such as a repossession may remain on your credit report for only seven years. After this period, it must be removed. If the date on your repossession is more than seven years old, you can dispute it.
The clock begins on the date of the first missed payment that led to the repossession, not on the date the repossession itself occurred. This distinction matters. The Consumer Financial Protection Bureau (CFPB) has found cases where lenders reported the repossession date instead of the date of first delinquency, which improperly extended the time the item remained on a credit report.
The “date of last activity” shown on your credit report should match the date you first missed a payment, not when your car or other secured property was repossessed. In many cases, the first missed payment occurs months or years before the repossession, which means the tradeline should drop off sooner. If you discover that the wrong date is being reported, you should dispute it.
If the information is both accurate and within the allowed reporting period, your focus should shift from removal to damage control. Some consumers try a goodwill letter, asking the lender to remove the entry as a courtesy. Others attempt a pay-for-delete arrangement, where the lender agrees to delete the trade line in exchange for payment of the remaining balance. For more on these strategies, see my article on how to remove negative marks from your credit report.
Closing Thoughts
Whether a repossession can be removed from your credit report comes down to accuracy. If it contains errors or cannot be verified, the FCRA gives you the right to dispute it and have it corrected, and in many cases, deleted. If it is accurate, removal is unlikely, but there may still be ways to reduce its impact.
If you are dealing with a repossession on your credit report and want to understand your options, contact Reznik Consumer Law. We can review your situation and help you decide on the best path forward.