Legal Question in Credit and Debt Law in South Carolina
Local Finance Companies and Credit Reporting
Shortly after having a Chapter 13 bankruptcy discharged, I was in need of a larger automobile. A bank would not finance the car, so I ended up going through a local finance company. The finance company has not reported my account or payment information in the 9 months I have had the loan with them. All payments have been up to date. Recently, this car had the transmission go out in it and it is in need of repairs worth more that the car is valued. I want to voluntarily repossess the car, aka give it back to the finance company. Since they haven't reported the ''good'' payment history, can they report this proposed ''bad'' payment history? And does returning the security (car) to them relieve me of my debt obligation under the law?
1 Answer from Attorneys
Re: Local Finance Companies and Credit Reporting
Yes, they can report the derogatory information, but you can request that the information be disputed. Too, the lender may be subject to any claims that you may have against the dealer if they sold you a piece of junk, knowingly. South Carolina has a Regulation of Motor Vehicle Dealers Act which prohibits deceptive behavior by an automobile dealer. Also, the dealer may be guilty of fraud and unfair trade practices, among other things, provided you purchased this vehicle from a dealer. If you voluntarily surrender the car, then they will sell it and more often than not it will bring less than what was owed on it and you may be liable for the deficiency. This will be on your credit report also (if they report it, which they probably will). You are invited to view our website at http://griffinfirm.tripod.com/ for further information.
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