My motorcycle was repossessed and they never sent a notice of dispositon as required by Georgia law. I also requested an explanation of disposition within 14 days as required by law and never received it either. Spoke with Vice Pres. of finance company and he stated that even though the law states no deficiency, there is still a balance due although they can’t use the court to collect it.
If they are barred from collecting a deficiency because of their non compliance of Georgia law, can they still show a balance due on the account and can they still show a charge off and balance due on my credit report?”
Yes. The credit reporting of your repo is legitimate regardless of whether they can access the courts in an effort to collect from you. Many states have a statute of limitations less than the typical 7 year reporting limit for negative items to remain on your credit report. The charge off, repossession etc. will stick.
Be sure that you are paying attention to the reporting limit and the estimated time for it to fall off. Unpaid debts are sold and resold. You may find a collector/debt buyer later reporting the trade line. The newly reported negative item (were one to show up) is not allowed another fresh 7 years. It would have to fall off when the original falls off. This is not always going to happen correctly. You will have to be diligent in making sure it does and take corrective steps if it does not.
If the original creditor reports a balance still owed and later sells the debt and continues to report the balance owed while the new owner reports and shows a balance owed, it has the affect of “double jeopardy”. You will not feel as if you won a prize like on the trivia show though.
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Michael Bovee has worked with financially challenged consumers for the past 17 years and is a recognized expert in his field. Michael founded Consumer Recovery Network (CRN) in 2006. CRN offers debt settlement services and educational resources nationwide. He has served as its president since 2006.
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