Legal Question in Credit and Debt Law in Utah

Used car financing - reporting

My mother purchased a used car from a lot where the offered onsite financing. She made all payments for over a year at some outrageous interest rate and was overcharged on the car in the beginning. She still owes more than the book value of the car. When she decided to look in to getting a new car she was upset to find out that the dealership did not report any of her payments to any credit reporting agency. She was trying to build credit. Now she would like the dealership to take back the car but doesn't want to ruin her credit. If they didn't report any payments, how can the report a repossession or non payment. Thanks for you help.


Asked on 11/27/00, 3:37 pm

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: Used car financing - reporting

The dealer undoubtedly sold the contract to another financial institution. Either the dealer or the new company has the option of reporting the credit history of the loan to credit bureaus. If your mother turns in the car they will have a new option of reporting the default. Her best option is probably to attempt to get the car refinanced or to negotiate for a lower rate with the present company. However, since she signed a contract, even if it is unreasonable, she will have to make the payments unless the loan is paid off in full.

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Answered on 12/04/00, 10:04 am


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