Free Credit Dispute

Guides

After a vehicle repossession

The notices you may be owed, how a remaining balance is figured, and how to check that your credit report is right.

2 min read · Last reviewed

General information, not legal or financial advice. Disputes correct errors; accurate negative information generally stays on a report until its reporting period ends. No result is promised. Check the official sources and your state's rules for your situation.

Notices you may be owed

State law and the Uniform Commercial Code (UCC) set the rules for repossession. The details differ by state.

  • Some states require a right-to-cure notice before repossession. It gives you a chance to catch up on missed payments.
  • Many states require notices both before and after the vehicle is sold.
  • Under UCC 9-611 and 9-614, the lender generally must send you a notice before it sells the vehicle. For a consumer loan, the notice should describe the sale and say whether you may owe a remaining balance.
  • UCC 9-616 says the lender must explain how it calculated any remaining balance (called a deficiency) or any surplus, when it asks you to pay or when you request it.
  • Under UCC 9-210, you can request an accounting of what you still owe.

Ask for the records

Ask the lender in writing for copies of every notice it sent, the sale details, and how it figured the balance. Our records-request letter is built for this.

  • The date the vehicle was taken
  • Every notice the lender says it sent, with dates and addresses
  • The sale date, the sale price, and the costs charged for repossession and sale
  • How the remaining balance was calculated

Check your credit report

  • The account should show the right dates, including the date of first delinquency.
  • The balance should reflect the sale proceeds and any payments you made after the sale.
  • The same debt should not be reported twice with a full balance on both accounts.
  • If something is wrong, dispute it with the bureau and with the lender.

Get help with state rules

Your state attorney general or consumer protection office can explain the rules where you live. If you are being sued, or you think a rule was broken, legal aid may be able to help for free.

Letters that can help

  • Request the lender's records and notices
  • Dispute directly with the lender that reported the account
  • Make a settlement or payment offer on a remaining balance

Related letters

Related definitions

Sources