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Posted in Auto Loans
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Question By
matka4

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Question on auto loan and repo.
I could not pay my auto loan and the vehicle was repoed. That was over 1 year ago. It still shows as open and late. I thought it would show closed.

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If there is still a balance owed to them (because they sold the car at auction for less that the balance of your loan), then it will stay open and on your record for 7 & 1/2 years from the date it went delinquent.

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Reply by
Arlanna23

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There is a gap that may protect the consumer. If the car was sold they are to notify the previous owner of the sale and negotiate the repayment of balance if any. There could be a BIG negotiation if they sold the car for more than the KBB value vs the amount actually owed. One could argue that the car was not worth the amount owed and being that is was sold for higher than the KBB one should not owe a dime more. 

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Repo

There is a chain of events that have to happen in order for a repo to be a repo...

Did they send you notice that if you failed to by a certain time the vehicle would be seized? (They have to send out 3 attempts)

Who was the company that removed the vehicle from your posession? Do reserach to see if they have proper license and requirements to remove the vehicle from you via tow or whatever.

Was law enforcement present in order to file a report? They are required to file a report so that you know some random John Doe didnt just steal your car.

9 times out of 10 these procedures are not done thus meaning the repo is invalid although this was your debt. There are rules and even if you default they are supposed to follow proper protocals and do the necessary steps so that you cant dispute the claim.

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