Question about reporting...

[hopefulrelief]

We reaffirmed on both vehicles, discharged 6/07. Just, for the first time, pulled CR. Both cars are with Toyota and both say...

"Account Name: TOYOTA MOTOR CREDIT
Account Number:
Acct Type: Auto Loan
Acct Status: Closed
Monthly Payment:
Date Open: 7/1/2003
Balance: $0.00
Terms: 60 Months
High Balance:
Limit:
Past Due:
Payment Status: Debt included in or discharged through Bankruptcy Chapter 7, 11, or 12 "

I am concerned about the payment status...nothing indicated that we reaffirmed or are current...never missed or payed late. Any advice?

[HHM]

This is a tough one and I have not heard of any body being able to resolve this issue to their satisfaction.

Unless the reaffirmation agreement "specifically" states how the auto loan is to be reported, most car finance companies seem to be reporting IIB, notwithstanding the reaffirmation.

In my opinion, such an entry on a reaffirmed auto-loan is inaccurate and is probably a violation of FCRA. However, I have not really researched the case law. (I can't imagine that there has not been a lawsuit about this, especially with the current BK law now going on 2 years).

At this point, go ahead and issue a dispute with the Credit Reporting Agencies (CRA's).

[JollyGG]

I'm having the same problem with my reafirmed auto through Wells Fargo.
I already disputed with the CRA and it came back verified. I'm getting ready to send a letter to Wells Fargo asking them to report correctly. I'll let you know how that goes.

If anyone does know of a lawsuit or anything saying that they have to report per FCRA please let me know.

[DisneyGirl]

We had this problem on our reaffirmed car loan with Wells Fargo. I disputed it and it came back verified. I went through WF directly and they said they were allowed to report it that way even though we reaffirmed, always paid on time, and it was paid off (by the time I called them). It didn't matter.

Good luck on getting it changed. If you do, please let us know!

[HHM]

You know the intersting thing, I did a google search for
"Reaffirmation agreements and credit reporting", and the first hit was too THIS forum

That should give you some idea about the total lack of easily available information on this subject.

[hopefulrelief]

Wow...I knew this wasn't going to be easy but yuck. The crazy thing is that everything else looked good and the two things we actually reaffirmed, etc. are a mess!

[HHM]

Let's keep some perspective here, having those cars reported as IIB with a Zero Balance is not the worst entry you could have. It actually does wonders for your debt/to balance ratio (i.e. Used Credit / Available Credit).

Granted, its not the "best" entry, especially given that you reaffirmed, are making payments etc, you lose the ongoing positive payment history and the benefit of an "open", Auto Loan account, in good standing. (for purpose of variety of credit)

If you really want to press the issue, you may want to contact NACA, National Association of Consumer Advocates (www.naca.net)

[brainless twit]

I had the same thing happen with one of my student loans - of course, I didn't have to reaffirm because I couldn't discharge it, but it said IIB on my credit report. I disputed and it came back verified. I called the company and told them that if they were going to report IIB, I wasn't going to pay them any more. Magically, it was changed within a few days.

[Beach Bum]

According to the Fair Credit Reporting Act they are required to report it correctly. If after several disputes with no results, you may need to take legal action. Have an attorney send them a letter.

[Flamingo]

Reaffirmed Items and Credit Reporting

We also encountered what you did as to your vehicle and also as to our first mortgage and home equity line. Our vehicles were crammed into our 13 so we were just able to clean up the reporting on those to show included in BK. However, two of the reporting agencies were showing both mortgages as being included in bankruptcy, and even one reporting agency kept reporting we filed a Chapter 7. We had a mess to clean up and it took up several months with that one. Anyway, after discharge as to our mortgages which were paid outside the Plan and never late prior to going into the Plan, on our first dispute as to the reporting as being included in Bankruptcy, we found out that is actually correct for them to report as such because your mortgage(s), vehicles, etc. that are reaffirmed are part of your bankruptcy. All that information is filed with the BK Court and all creditors notified, including the reaffirmed ones. So it may be difficult to get it removed. In our situation, we kept disputing it and also wrote to each mortgagor stating we were never late with the mortgage and payments continued on time after filing BK. Nothing missed or late. We were able to get both mortgagors to remove the BK information and have those mortgages reported as normal.

The main thing here is that the creditor is correct in reporting as such and does not have to remove the "included in BK" from your credit report because that item is actually a part of your BK even if you made the payments outside of the Plan.