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LEARN HOW TO START, RUN, OR GROW YOUR CREDIT REPAIR BUSINESS

Remove Repossessions from Credit Reports with these Proven Strategies

By: Daniel Rosen May 17, 2022

Of all the financial hardships you can face, one stands out the most…

It stands out because it has the most immediate impact on your day-to-day life…

It’s VEHICLE REPOSSESSIONS 🚙🚚🛻

Having your car repossessed can be devastating! 😱😱😱

You not only lose your vehicle in the short term, but the hit you take on your credit report will make it harder and more expensive for you to get back on the road! 😤😤😤

So, in this week's podcast, I’m going to teach you all my secrets for removing repossessions from credit reports! 

 

Did you know there are roughly 288 million registered vehicles in the U.S?

In a country with 330 million people, that’s nearly one vehicle per person!

Now, for some of these people, having a car is a luxury, to play with on the weekends. But for most of us, especially people like me, living here in Los Angeles, you need a car to survive!

So, today I’m going to talk about repossessions and how to eliminate them from credit reports!

What exactly is a repossession? 

Repossession is when a bank or financial institution takes possession of your vehicle after you fall behind on your payments. 

It’s a reminder that you don’t actually own it…They do. 

Your vehicle purchase contract should include details about how and when your auto lender can repossess your car.

You can have your vehicle repossessed within three months of defaulting on your loan…

Depending on your contract, your lender may be able to start the repossession process right after the first missed payment! 😡

Sometimes auto lenders repossess vehicles without even warning the customer! 😡

And sometimes they repossess vehicles without even having permission from the court! 😡

Now, vehicle repossession laws vary by state…and there are two major types of repossession: VOLUNTARY and INVOLUNTARY.

Voluntary repossession is when you give your car back to the lender, usually because you can’t afford to make the monthly payments.

Involuntary repossession, the type most people are familiar with, is when the lender comes to take back the vehicle. 

That’s when you walk out your door and watch your car being towed away… 

Repossessions are different from almost every other type of item on a credit report because of the little nuances within the auto loan contracts.

Anyone who’s ever fought to remove a repo from a credit report knows how tricky they can be to eliminate. 

But it’s not impossible! 

You have options!

Here’s why this is important…

Depending on the source, there are between 1.5 and 2 MILLION vehicles repossessed in the United States EVERY YEAR.

That’s 4 to 5 THOUSAND repossessions EVERY DAY!

That’s an astounding number of potential clients in desperate need of credit repair! 

Some are parents who can’t drive their children to school…👪

Some are workmen who can’t take jobs because they no longer have a truck…🚧

But remember, repossessions don’t just leave you without a car…🚘

They negatively impact your credit score for years to come, making it harder to qualify for another car loan, credit card, or mortgage.

So, removing these repossessions will get your clients back on the road and back on their feet. 

Here are three proven tactics to help you permanently remove repos from credit reports:

The FIRST TACTIC is a FACTUAL DISPUTE

Factual Dispute usually works like a charm but it’s a bit advanced and it ONLY applies when:

  • The loans have GAP insurance
  • The vehicle was sold at auction after repossession
  • The balance was sold to a 3rd party

It must meet ALL of those conditions or you're wasting your time. 

Here’s the good news…

Most vehicles financed from dealerships have GAP insurance, and if you have GAP insurance for the life of the vehicle, a prorated portion of the vehicle is covered IF…and only IF…the vehicle is considered a loss. 

Now, a repossession is a loss, so when this happens the refund is sent to the FINANCING COMPANY. 

The FINANCING COMPANY receives this GAP payment long after the account is sold to the 3rd PARTY DEBT COLLECTION AGENCY and never updates the true balance of the loan on your credit report. 

This means the balance is INACCURATE…which means it is FACTUALLY INCORRECT

And THAT my friend is the key to removing the repo using the Factual Dispute strategy.

You might be wondering how you actually file the dispute.

Here’s how…

First, remember, with all credit repair strategies, timing is critical.

You must complete STEP #1 and STEP #2 on the same day!

STEP #1

Demand validation with certified mail, with a return receipt on the account, with the 3rd PARTY DEBT COLLECTION AGENCY. 

Chances are they will respond with the wrong balance because the GAP insurance paid the FINANCING COMPANY and the FINANCING COMPANY did not report the payment to the 3rd PARTY DEBT COLLECTOR. 

Do you see what I mean when I said this is a little advanced? 😅😅😅

It’s okay if you need to take a moment, scroll back up, and review. 

This is all very important and I want to make sure that you learn it.

STEP #2 (And be sure to do this on the same day as Step #1)

Contact the GAP company and request a refund for the loss of the vehicle. 

The GAP company will immediately tell you that a payment has already been made to the FINANCING COMPANY. 

You need to ask for proof and they will send you a receipt for the payment made to the FINANCING COMPANY.

STEP #3

Get a large envelope, and address it to the credit bureaus by certified mail with return receipt. Include:

  • A copy of the receipt from the GAP company
  • A letter to the 3 BUREAUS explaining the balance reported was not accurate
  • A copy of the validation demand you sent to the 3rd PARTY DEBT COLLECTION AGENCY
  • A copy of the signed return receipt from your debt validation letter
  • And the response you received from the 3rd PARTY DEBT COLLECTION AGENCY that shows the wrong balance

Now, this process usually results in a deletion…

But if not, you should file a complaint with CFPB. Then…

Resend EVERYTHING to the BUREAU AGAIN! 📨 📩 📫

But this time include a copy of the CFPB complaint to the bureaus and demand removal. 

You might also want to send the same to the 3rd PARTY DEBT COLLECTION AGENCY.

The SECOND TACTIC is “CREDIT SALE DISCREPANCY” 

If the repossession you're trying to remove doesn’t fit the criteria for the tactic I just went over, “Credit Sale Discrepancy” is another Factual Dispute tactic that is often very successful.

It simply means there’s a minor detail issue in the terminology used to indicate the type of account listed on your report. 

See, auto dealerships are set up to make sales in one of two ways: 

  • An Installment Loan
  • A Credit Sale

An Installment Loan means the dealer lends you money and you pay the dealer in “installments” until the loan is paid in full.  

A Credit Sale means the dealer sold the loan to a lender.  

Most dealers prefer “Credit Sales” because they get paid immediately, as opposed to collecting interest over a long period of time with loans.  

Now, if you or your client signed your documents at a dealership, there’s about an 80% chance it is a “Credit Sale”, not an “Installment Loan.” 

So take a good look at your credit report, if it says “loan” (and it usually does), you can factually dispute the repossession based solely on that specific factual error in how it’s listed on the report.

Remember, if you are confident about the fact that it is being misreported, don’t give up if they verify it. Ok?  Don’t give up. Sometimes this takes pressure and persistence. 

You can always send more letters. You can always follow up with a creditor or bureau warning letter. Warning them that you are going to report them.  

You can file complaints and follow up again, and even then, if they are still unwilling to correct your report – you always have the option of working with an FCRA attorney that may be able to not only permanently remove the repo but possibly settle and put cash in your clients pocket.

And I got one more for you…

I call the THIRD TACTIC…“How the heck was I late paying after you took the car?”

Removing ReposSo, if you’ve ever dealt with a repossession, typically, the vehicle is sold at auction for a fraction of what is owed…often leaving a deficiency balance. 

Once that happens, you ask yourself, how in the world can the original creditor still report late payments? 😖

Well, they shouldn’t! 🚨

But they often do and that is the key to identifying a factual error and ultimately, getting it removed. 🔑

The reporting of late payments after a repossession occurs… is an error!

When this happens, simply dispute the error with pinpoint accuracy. You want to point out that the vehicle was repossessed, and therefore, defaulting on payments at this point is inaccurate.

Pretty cool right? 

Anyway, these are three proven tactics for removing repossessions from credit reports. 

And they really work! 

If you didn’t catch everything I just covered, take your time, review it, relisten to the podcast, and take notes. 

Repossessions impact people's lives too much for this not to be handled quickly and with the best possible care. When you get your clients back on the road and back on their feet, they are going to be grateful.

Repossessions and other high-level negative items are covered in our Credit Repair Cloud Advanced Disputing Course! 

And we have all these letters I talked about inside Credit Repair Cloud. If you don’t already have a Credit Repair Cloud account, check it out. It’s the software that most credit repair businesses in America run on. Just sign up for a 30 day free trial at creditrepaircloud.com/freetrial

And If you’d like me to hold you by the hand as you launch your own credit repair business, check out our Credit Hero Challenge
Challenge-Stack-Mockup-Final

It’s an amazing program where you’ll learn the processes that have made millionaires, and it costs less than you'll spend taking your family to McDonald’s for dinner. 

We’ve got another challenge starting in a few days so grab your spot right now at CreditHeroChallenge.com!

Until then, remove those repossessions…

And keep changing lives!

Be sure to subscribe on your favorite platform below!

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Topics: Podcast

Transcript

Daniel Rosen  0:00  

Hey credit heroes, of all the financial hardships that you can face, the one that has the most immediate impact on your day to day life is vehicle repossession. Having your car repossessed. It can be devastating. You not only lose your car in the short term, but the hit to your credit report will make it harder and more expensive for you to get back on the road. Basically, repossessions start a domino effect that can take years to recover from. That's why today, I'm going to teach you all my secrets for removing repose from credit reports. So you better stick around. So the big question is this, how can we take our passion for helping people with their credit and turn it into a successful business without taking loans without spending a fortune by bootstrapping it from nothing? So we can help the most people and still become highly profitable? That is the question, and this podcast will give you the answer. My name is Daniel Rosen, and welcome to Credit Repair Business Secrets.

 

Did you know that there are roughly 288 million registered vehicles in the United States, and in a country with 330 million people, that's nearly one vehicle per person. Now, for some of these people, having a car is a luxury to play with on the weekends. But for most of us, especially people like me, living your Los Angeles, you need to have a car to survive. So today I'm going to talk about repossessions and how to eliminate them from credit reports. Now, before we get into this, this podcast is brought to you by the Credit Hero Challenge. If you want me to hold you by the hand, as you launch your very own credit repair business, go to credit hero challenge.com and sign up now. And I love this part. Every episode I am featuring one of our credit heroes inside our credit repair cloud Facebook community so that you can see first-hand what real people are doing as they launch and grow their business. And today's spotlight is on Tamra banks. Tamra recently announced in the community that she found her calling and she started her credit repair business, and she wrote this. My goal is to sincerely wholeheartedly change lives with credit repair. That's why I named my business sincere credit solvers. And I not only want to repair credit, but I also want to educate my clients we all know being knowledgeable about credit is the key to financial freedom. Wow, Tamra, Congratulations on starting your business. And I think sincere credit solvers is a fantastic business name. And I'm so glad that you took part in our credit hero challenge. And we're going to be here with you every step of the way as you grow your business. And you're right that big knowledgeable is the key to financial freedom. That's why today I'm going to give you some slightly advanced but essential info that can help you to remove repose from credit reports. So let's get into this. Now what exactly is a repossession? A repossession is when a bank or financial institution takes possession of your car after you fall behind on your payments. And it's a reminder that you don't actually own the vehicle they do. Your vehicle purchase contract should include details about how and when your auto lender can repossess your car, and you could have your car repossessed within three months of defaulting on your loan. And depending on your contract, your lender may be able to start the repossession process right after the first payment is missed. but also be aware sometimes auto lenders repossess vehicles without warning the customer at all okay? And sometimes they repossess vehicles without even having permission from the court. Now, vehicle repossession laws they vary by state and there are two major types of repossession voluntary and involuntary. Now, voluntary repossession is when you give your car back to the lender, usually because you can't afford to make the monthly payments and involuntary repossession is is the type that most people are familiar with. That's when the lender comes to take back your vehicle and you walk out your door and you see this guy here, rolling down the street with your car and you're upset, and it is horrible. Now, repossessions are different from almost any other type of item that are on a credit report because of the little nuances that are in the auto loan contracts. Now, anyone who has ever fought to remove a repo from a credit report, they know how tricky they can be to eliminate, but it's not impossible, you have options. Here's why this is important. repossessions don't just leave you without a car. No, they negatively impact your credit score for years to come, making it harder to qualify for another car alone, a credit card or a mortgage. Depending on the source. There are between one and a half and 2 million vehicles. repossessed in the United States every year. So that means there are between four and 5000 repossessions every single day. And that's an astounding number of potential clients who are in desperate need of help with their credit from you see these repossessions they impact lives in so many ways. It could be a parent who now can't drive their child to school or a workman who can't take a job because he no longer has his truck. So removing these repossessions they'll get your clients back on the road and back on their feet. So here's what you need to know. I'm going to give you three proven tactics that can help you to permanently remove repossessions from credit reports. Now the first tactic is factual dispute. factual dispute usually works like a charm, but it's a little advanced and it only applies when the loans let's clear this up. It only applies when the loans have GAP insurance. If the vehicle was sold at an auction, after the repossession, or if the balance was sold to a third party, it must meet all of these conditions, or you are wasting your time. Now, here's the good news. Most vehicles finance from dealerships they have GAP Insurance, okay, they have GAP insurance for the entire life of the vehicle, a prorated portion of the vehicle is covered if and only if the vehicle is considered a loss. Now a repossession is a loss. Okay, so when this happens, the refund is sent to the financing company and the financing company, they receive this gap payment long after the account is sold to a third party debt collection agency. And they never update the true balance of the loan on your credit report. So that means the balance on your credit report is inaccurate, which means it is factually incorrect. And that my friend is the key to removing the repo using the factual dispute strategy. Now you might be wondering, how do you actually file the dispute? Okay, here's how first, remember with all credit repair strategies, timing is critical. All right, so you must complete steps one and two in the very same day. So here's step one, you demand validation with certified mail return receipt, on the account with the third party debt collection agency. Now chances are they're going to respond with the wrong balance, because the GAP insurance paid the financing company and the financing company did not report the payment to the third party debt collector. Do you see what I mean when I said this is a little advanced. Now it's okay if you need to pause or rewind to review what I just said. This is all very important, and I want to make sure that you learn it and for step two, and be sure to do this on the same day. Contact the gap company and request a refund for the loss of the vehicle. Now, here's what's going to happen. The gap company will immediately tell you that a payment has already been made to the financing company. So you need to ask for proof and they will send you a receipt for the payment made to the financing company. And now we move on to step number three, you get a large envelope, send it by certified mail, return receipt, and send it to the credit bureaus. And in that envelope, you want to include a copy of the receipt from the gap company, a letter to the bureau explaining that the balance reported is not accurate, a copy of the validation demand that you sent to the third party debt collection agency, and also include the response that you received from the third party debt collection agency showing the wrong balance. Now this process, it usually results in a deletion. And if not, you should file a complaint with the CFPB and then resend everything to the bureaus again, but this time, include a copy of the CFPB complaint about the Bureau's, okay, and demand removal. And you might also send the same packet to the third party debt collection agency. Cool, right. Okay, I've got another one for you. And I like to call this second tactic credit sale discrepancy. Here's how this works. If the repossession that you're trying to remove if it doesn't fit that criteria for the tactic that I just went over the credit sale discrepancy is another factual dispute tactic that's often very successful. And it simply means there is a minor detail issue in the terminology used to indicate the type of account that's listed on your report. Okay, see auto dealerships, they're set up to make sales in one of two ways, an instalment loan or a credit sale. Now an instalment loan, it means that the dealer lends you money, and then you pay the dealer in instalments until the loan is paid in full. And a credit sale means the dealer sold the loan to a lender. Now most dealers prefer credit sales, because then they get paid immediately, as opposed to collecting interest over a long period of time with a loan. Okay, they want their money, so they usually do a credit sale. Now, if you or your clients signed your documents at a dealership, there's about an 80% chance that it is a credit sale and not an instalment loan. So take a good look at your credit report. Okay, and if it says loan, and it usually does, that you can factually dispute the repossession based solely on that specific factual error of how it's listed on the report. Now, remember, if you are confident about the fact that it is being misreported, don't give up even if they verify it, okay, don't give up. Sometimes this takes pressure and persistence, you can always send more letters, you can always follow up with a creditor or a bureau warning letter, warning them that you're about to report them, you can file complaints and follow up again. And even then, if they are still unwilling to correct your report, you always have the option of contacting an FCRA attorney who may be able to not only permanently remove the repo, but possibly settle and put cash in your clients pocket. Okay, and I've got one more for you this last tactic. I call how the heck was I late paying after you took my car? Okay, so if you've ever dealt with a repossession, typically, the vehicle is sold at auction for a fraction of what is owed, often leaving a deficiency balance. Now, once that happens, you ask yourself, How in the world can the original creditor still report late payments? Well, they shouldn't. But they often do. And that is the key to identifying a factual error and ultimately getting it removed. See the reporting of late payments after a repossession occurs? That is an error. And when this happens, simply dispute the error with pinpoint accuracy. You want to point out that the vehicle was repossessed, and therefore defaulting on the payments at this point is inaccurate. Pretty cool, right? Anyways, these are three proven tactics for removing repossessions from credit reports, and they really work and if you didn't get He everything that I just said, save this podcast and re listen to it. Okay, we listen and take notes. repossessions impact people's lives too much for this to not be handled quickly and with the best possible care. And when you get your clients back on the road and back on their feet, they are going to be grateful. repossessions and other high level negative items are all covered in our credit repair cloud advanced disputing course. And we have all the letters that I just talked about inside credit repair cloud. So if you don't already have a credit repair Cloud account, check it out. It's the software that most credit repair businesses in America run on. And you can have a 30 day free trial at credit repair cloud.com/free trial. And if you'd like me to hold you by the hand, as you launch your very own credit repair business, check out our Credit Hero Challenge. It's a live experience that has helped tonnes of credit heroes to get their first clients to get certified in disputing. And they gain confidence as they launched their credit repair business on a solid foundation. So they can change a whole lot of lives and make a great living in the process. And we're starting the next challenge in just a couple of days. So you want to join before the doors close, or you're gonna have a long wait until the next one. So sign up now at creditherochallenge.com. And if you're finding value in the things that I'm sharing on this podcast, be sure to click below to subscribe. And if you're feeling kind rate me, give me a review, give me five stars, ask a question, leave a comment, because I read each and every one of them. And I will see you on the next episode. And until then, be it credit hero and keep changing lives. 

 

Hey, everybody, it's Daniel again. And really quick, I'd like to invite you to join what I believe is the best thing we have ever created inside the Credit Repair Cloud Community. And it is a challenge that we call the credit hero challenge. If you're just planning out your business, or you're just getting started, and you dream of having a successful business of your own. So you can quit your nine to five and fire your boss and have financial freedom or so you can add another revenue stream to your existing business. If that's your dream, you need to get into this challenge. We created this challenge to help you to create and launch your very own credit repair business to build a proper foundation for a really successful business. This challenge is going to help you to understand the strategy, the tactics and all the things you need to be successful at credit repair. It really is the greatest thing we have ever built, and it will change your life. So I recommend you do it right now. Stop everything pause this audio go online and go to creditherochallenge.com That's creditherochallenge.com and join the next challenge. And there's a challenge that starting in just a few days. So go get started right now at creditherochallenge.com

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