QUESTION
What legal action can I do if I am paying the car but it doesn't appear on my credit report? And is my bank fraudulent?
Asked on Jul 01st, 2013 on Bankruptcy - Arizona
More details to this question:
I purchased my car 2009. Filed partial bankruptcy December 2009. Went to court April 2010 and my debt was discharged. In my filing it was clear I was keeping my car - only filing credit for my recent divorce. In Jan 2011 I check my credit report and it showed my car was discharged. I called the bank and explained and they said they would correct it with the credit bureau to show I was making payments. I asked them for 2 years and nothing. In April 2013 I filed a correction through experience and they sent a request to the bank. The bank did not respond and in may my car was removed completely from Experian. I have been making $386.07 / month payments from July 2009 - present and it doesn't show on 1 credit report and shows discharged on the other 2. I tried to trade the car in today so I can build my credit and was told that if I did the bank would take it from the dealership because it shows discharged. I need to make a payment this week and I'm afraid I'm just paying to rent a car. Is this a losing battle? Or is my bank in the wrong?
5 ANSWERS
Bankruptcy Attorney serving Florissant, MO
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Law Offices of Thomas Corcoran Phipps
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You may have to file a lawsuit in state court to get the bank to give you title to the car after you have paid it off. If you don't make the payments, they may try to repossess the vehicle.
Answered on Jul 05th, 2013 at 4:50 AM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Nothing compels a Bank to report anything. Credit reporting agencies cannot print false information. You may have not signed a reaffirmation agreement with the Bank during the bankruptcy to say that you agree to pay the debt. Then technically it was discharged. Nothing however prevents them from accepting your payments and your keeping their collateral the car. However if it is not paid off you are not "trading in" anything but "rolling over" old debt into new debt. Not a wise decision. If your car is paid off then demand a sign off of the lien on the title and then trade it in.
Answered on Jul 03rd, 2013 at 7:38 PM
Deborah F. Bowinski
Your loan was discharged in your bankruptcy. That does not mean, however, that your payments since that time have not been properly applied to the loan balance. As long as you continue to make loan payments you get to keep the car, and eventually, when the loan is paid off you will receive the title. If you stop making payments the lender will have the right to repossess. You cannot sell or trade the car without paying off the remaining balance on the loan, since the lien still exists against the title to the car. You can surrender the vehicle to the lender and not have to pay another penny, or you can continue with the loan payments and eventually own the car outright.
Answered on Jul 03rd, 2013 at 1:38 PM
Unless you filed a reaffirmation with the court which the court approved on your vehicle loan, your lender is prohibited by law from posting any information about your payments to any of the credit reports. You do not have a case & you do not understand the consequences of bankruptcy. You do not get to pick & chose what debts were included in your bankruptcy, because federal law required that all of them were included. Further the FCRA makes no provision requiring any creditor to report to the credit bureaus in any event.
Answered on Jul 03rd, 2013 at 12:57 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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No your bank is not wrong. There is no law that requires a creditor to report any payment to the credit bureaus. Bankruptcy add even more complexity to the problem. I wish I had better news.
Answered on Jul 03rd, 2013 at 11:07 AM