I had an auto loan through a buy here/pay here dealership. Paid way more for the vehicle then it was worth. With just over $6,000 to go on the loan, I noticed on my monthly credit report notifications that the dealership had wrote off my loan, terming it bad debt. This is ridiculous since the last payment I made was done 20 days prior to this.
What are my options? I did not receive ANY notification from the dealership that they were doing this. Do I have any rights in this matter?
First we need to start with some questions and then some investigation. Have you always made your payments on-time and at least the minimum amount due? Have you ever missed a payment and not caught up on it?
I want you to call the dealership and ask them why the loan is reported as charged off. Honest mistakes happen all the time and if you are in compliance with the loan agreement then they can simply update the reporting of the loan to the credit bureaus and that will be that.
Make sure you have looked at a consolidated credit report to see which of the three main credit bureaus is reporting this error.
If you’ve made all your payment on-time this issue is unfortunate, but can be corrected.