Why does my repossessed car appear on my credit report while I still have a right to redeem?

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Question:

The creditor reported a repossession on my credit report but did not sell the vehicle until two months later. I had the right to get the car back if I paid the late fees and charges, although I didn't do it. Can a creditor place a repossession report on a credit report before the vehicle is redeemed or auctioned?

Answer:

A credit report must be just that -- a report of what happened that affected the person's credit. In your case, the creditor repossessed the vehicle and was entitled to report that. The fact that you had the right to redeem or reinstate the contract does not change the other fact that the vehicle, in fact, was repossessed. Nor does the delay in selling the vehicle change the fact of the repossession.

If you had redeemed the car or reinstated the contract, your credit report would had to have been updated to reflect that. But the report could also still indicate that the vehicle had been repossessed.

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