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kayleecheryl91

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Repo showing on credit 2 years after it happened
A few years ago I had an auto loan through California Auto Finance. They did not start reporting any info to my credit report until about 6 months into the loan and they only reported to Experian ( when they felt like it ). Eventually the car was repossessed without any written notification. Then the loan showed as repossessed on my experian report.

Now, 2 years later, they've sent the account to collections and it's now showing on my equifax and transunion reports as well (not the payment history just the collection account). They haven't tried contacting me or made any collection efforts.

I'm trying to clean up my credit. What's the best course of action? Would it help my credit if I paid it or would it just cause it to remain there longer?

Any advice is appreciated!

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The Repo is going to show

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It will be on your credit report for a total of 7.5 years.  Thats not going away, it's part of your credit history.  Finance companies are not required to report  loan activity to the Credit Bureaus, They have to pay for the service each time they report. So some only report quarterly or randomly. Auto finance is one of the worst industries at consistent reporting in my experience.  

As far as the balance due on the Repo'd car.  Finance companies don't repo cars with out following their legal obligation to notify and attempt to collect. That aside, Yes they do have a legal right to try and collect what was owed, But if, as you say, they never notified you that they were trying to collect and then sold the account to collections, you may have a shot at trying to validate the account.  

Write a "Validation Letter"  Google it for a template and more info.  Mail to Experian.  They will ask the collection agency to prove that they have the legal right to collect.  Many times they won't have all the paperwork they need so they will have to drop the account. 

Good luck 

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