Legal Question in Credit and Debt Law in California

Credit reporting of discharged auto loan

Are creditors legally bound NOT to report that I have made payments on my dischareged auto loan? When I contacted this lender I was told that they were receiving my payments and applying to my loan, however they were not allowed to report this to the CRA's since the debt was discharged. I did not re-affirm the debt according to my attorney, in case I defaulted, to avoid liability in excess of auto's value. I have nearly paid off the 17,000 and yet have this reflecting negatively on my credit reports. I've tried reading the FCRA, and other resources but can not verify the statements of this lender. My attorney says they are wrong, but isn't offering any help.


Asked on 1/28/02, 11:49 am

2 Answers from Attorneys
Ken Koenen Koenen & Tokunaga, P.C.

Re: Credit reporting of discharged auto loan

Credit reporting agencies are required to report accurately. Send them a letter of dispute, and proof of the payment history, and demand that they publish it in any reports.

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Answered on 1/28/02, 12:01 pm
Robert Mccoy Law Office Of Robert McCoy

Re: Credit reporting of discharged auto loan

Ken Koenan is exactly right. And then if the CRA does not report the payements then sue the CRA and the finance company in small claims court for $5,000--I did the same thing myself a couple of months ago and got a $5,000 judgment.

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Answered on 1/28/02, 2:20 pm


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