The Car Dealership Wrote Off My Loan I’m Paying On. – Kyran

“Dear Steve,

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?


Dear Kyran,

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.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

Do you have a question you'd like to ask me for free? Go ahead and click here.
Damon Day - Pro Debt Coach

Follow Me
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
Steve Rhode
Follow Me

Leave a Comment