Once you have a repossession on your credit report, you can only have it removed under specific conditions. Florida complies with the guidelines outlined in the Fair Credit Reporting Act for disputing information on your credit report. Florida's statute of limitation laws also impact your ability to have a repossession removed from your report.
Definition
The term "repo" generally refers to automobile or other vehicle repossession. Repossession is often the result of defaulting on a loan in which the vehicle was used as security. Specific credit agreements define the terms of default and give the creditor the right to repossess the vehicle as soon as a default occurs. In Florida, creditors may come onto your property without notice to seize the vehicle, but they may not use physical force or threats of force to do so. Florida laws consider physical force or threats to be a "breach of the peace." If the creditors commit a breach of the peace, they are liable for penalties and compensation for any harm.
Deficiency Judgment
Creditors who repo property in Florida may then resell the property and apply the proceeds to your outstanding loan. If the sale does not produce sufficient funds to cover what you owe, the creditor may choose to sue you for a deficiency judgment. Deficiency judgments are negative entries on your credit report in addition to the negative repo account entry. Florida judgments are valid and collectible through wage garnishment, property seizures and bank account levies for up to 20 years.
Statute of Limitations
Vehicle installment loans fall under the written contract statutes. The Florida statute of limitations for written contracts is five years. This means that the creditor has five years from the date of your last payment to sue you for a deficiency judgment. The creditor may file a suit if the repo account is out-of-statute, but you can present an SOL defense and block the deficiency judgment.
Dispute
To have a repo in Florida removed from your credit report, you must file a dispute with each credit reporting agency listing the repo account. According to the FCRA, negative account listings may be removed from a consumer's credit report after seven years. If the creditor won a deficiency judgment against you, the judgment is allowed to remain part of your credit report for as long as it is valid, or up to 20 years in Florida. If the deficiency judgment or the repo account listing is inaccurate, you may file a dispute to have them removed prior to seven or 20 years. Each credit reporting agency offers multiple ways to dispute the information on your credit report.
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