Dear Terry, I co-signed on a car loan for a family member. The car was repossessed and sold at auction by the sheriff's department for unpaid tickets. Payments were always made to the bank that issued the loan and the balance was paid off after the repo by the sheriff. Yet, a repo shows up on my credit report.What can I do to clear my credit, or to make them note that this was not a repo by the bank for nonpayment of a loan? -- MikeDear Mike, Your first step should be to contact the bank and show the proof -- receipts, canceled checks, etc. -- that you paid the loan in full. With such proof, they should be willing to correct the record. If there are payments in dispute, contact the credit reporting agencies and tell them the issue is in dispute.Here are this week's readers' questions:No-haggle pricing can mask hidden costsShould I use home equity to buy a car?How can I clarify why my car was repossessed?Will I get my down payment back after rescission?If you have a question for Terry, e-mail him at Driving for Dollars. Save money on your car -- sign up for Bankrate's new weekend Car & Money newsletter. advertisementRelated Links:7 best off-to-college carsNational auto loan averagesWhat changes auto loan rates?Related Articles:All new cars for 20105 steps to 'clunker' dealTake the 'cash back?'
Dear Terry, I co-signed on a car loan for a family member. The car was repossessed and sold at auction by the sheriff's department for unpaid tickets. Payments were always made to the bank that issued the loan and the balance was paid off after the repo by the sheriff. Yet, a repo shows up on my credit report.
What can I do to clear my credit, or to make them note that this was not a repo by the bank for nonpayment of a loan? -- Mike
Dear Mike, Your first step should be to contact the bank and show the proof -- receipts, canceled checks, etc. -- that you paid the loan in full. With such proof, they should be willing to correct the record. If there are payments in dispute, contact the credit reporting agencies and tell them the issue is in dispute.
If you have a question for Terry, e-mail him at Driving for Dollars. Save money on your car -- sign up for Bankrate's new weekend Car & Money newsletter.