Legal Question in Credit and Debt Law in Indiana
Bad credit reporting by a bank
My stepdaughter surrendered a motorcycle because she couldn't afford the payments. After the bank sold the bike they informed her she still owed money. I spoke with the bank rep an reached an agreement that she would pay $75 a month and the bank would not file bad credit with the credit bureaus. We have since found that the bank filed with each agency a repossesion of the bike and a write-off for bad credit. The bank has refused to correct the reporting and the credit agencies won't change their report. Is my stepdaughter still obiligated to continue making payments if they have turned it in as a profit/loss bad credit write off. My feeling is that as long as they refuse to make a correction that my stepdaughter should cease payments. They broke the agreement. Also, the rep told me that once she made substancial payments they would consider it finalized. That tells me they are not concerned about collecting in full. What are my stepdaughters legal rights to the bank or fixing her credit report.
1 Answer from Attorneys
Re: Bad credit reporting by a bank
If your daughter doesn't make the payments the Bank will definately sue. The credit reporting has nothing to do with the money still owed. Do you have anything in writing where the Bank agreed not to report the deficiency/reposession.
The Bank is obligated under federal law to report the reposession and deficiency sale but they then can report the workout and satisfaction once paid which is better than a collection.
The credit bureaus cannot change anything without the creditor requesting the change, unless there is a court order
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