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Repossession and the deficiency balance

The car is gone, but the remaining balance keeps reporting — and it's often wrong.

After a repossession, the lender sells the vehicle and applies the proceeds to your loan. Whatever's left is the deficiency balance, and that's what should show on your report. The tradeline should reflect the sale, the credit for the proceeds, and the actual remaining amount.

Errors cluster here: balances that never got credited for the auction proceeds, a deficiency sold to a collector while the original lender still shows the full amount, and repossessions listed as voluntary or involuntary inconsistently across bureaus. All three are specific, checkable inaccuracies.

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