Repossession
A repossession is the lender's recovery of collateral — typically a vehicle — after a borrower defaults on a secured loan. It is reported as a serious derogatory item and generally remains for about seven years.
Why it matters in credit repair
Repossession entries often contain disputable inaccuracies — wrong balances, deficiency amounts, dates, or status — especially after the collateral is sold. Inconsistent reporting across bureaus can support an FCRA accuracy dispute.
How it appears on a credit report
It appears on the underlying auto or secured-loan tradeline with a repossession or voluntary-surrender status and an associated balance.
Example
After a car is repossessed and auctioned, the tradeline still reports the full original balance rather than the post-sale deficiency — a disputable inaccuracy.
Common misunderstanding
Consumers think a repossession is unchallengeable. The event may be accurate while specific reported figures or dates are not.
Related terms
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