rules for creditors reporting negative info.

My info:

At the time of the auto purchase, I lived in Illinois. I now live in Missouri.


My scenario:

In 1994 I defaulted on an automobile loan that was co-signed by my father. The car was repossessed shortly after. The bank sold it at auction for $3,500 but I still owed about $15,000. In Feb. of '95, my father filed for bankruptcy and the auto loan was included in his bankruptcy. The bank has never attempted to collect any monies from me, but have always reported it to the credit bureaus. The way it stands now is two listings stating "Paid or Paying As Agreed" with a $0 balance and one listing that states "Status as of 04/1995: Charged Off as bad Debt" with a balance of $10,038.

My questions:

Does the fact that the car was included in his bankruptcy mean anything from my end (responsibilities)? Is it true that this type of debt, whether paid or not, can only be reported for seven years from the month it was first delinquent? If so, why is it still appearing on my credit report? Is there anything I can do to remedy this situation?

Thank you in advance for any help you can offer!

Does the fact that the car was included in his bankruptcy mean anything from my end (responsibilities)?

No.

Is it true that this type of debt, whether paid or not, can only be reported for seven years from the month it was first delinquent?

Yes.

If so, why is it still appearing on my credit report?

Because the finance company is making a mistake.

Is there anything I can do to remedy this situation?

Yes, you should send the finance company a letter via ceritified mail, return receipt requested demanding that they remove this information from your credit report at once. Should they fail to do so within 60 days, file a lawsuit agaist them in small claims court for $1,000.00. Hopefully they will remove it in response to your letter. Advise them in your letter that you intend to sue them if they do not update your credit file.


[email]JASON@LEGISLATOR.COM[/email]