Legal Question in Credit and Debt Law in Connecticut

Motorcycle Loan

I co-signed for a motorcycle loan, recently it was stolen and not recovered. The insurance paid their portion, there was a balance due, which I paid off as soon as they contacted me. When I received my credit report, this account was reported deliquent with a comment ''settled for less than amount due''. They claim there had been a past due balance on the account, but never notified me at all. When I called them, they said it was my responsibility to call to check on the account. They said I could write a letter disputing this. What else can I do? My credit report has been perfect until this incident.


Asked on 4/14/09, 2:15 pm

1 Answer from Attorneys
Linda Subbloie Linda A. Subbloie, Esq.

Re: Motorcycle Loan

First, you should verify that there is, in fact, a past due balance that you didn't know about. If there is, then you should pay it in full. See if the lender will clear your credit report. If not, then write a letter disputing the negative report to the credit bureau to post to your account.

Unfortunately, the fact you didn't know about the past due balance is generally not a defense, so long as the past due amount is valid itself.

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Answered on 4/14/09, 2:22 pm


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