Process Terms
Repossession: Definition
The act of a lender reclaiming property used as collateral.
Definition
Repossession occurs when a lender reclaims property (typically a vehicle) that was used as collateral for a loan after the borrower defaults. Repossession is reported using specific Account Status codes and can significantly damage credit scores. It remains on credit reports for 7 years.
Examples
Account Status 78 = Repossession
Usage Notes
- Remains on report 7 years from event
- May result in deficiency balance owed
- Voluntary surrender still counts as repossession
Related Terms
More Process Terms
Dispute
A consumer's challenge to the accuracy of reported information.
ACDV (Automated Consumer Dispute Verification)
The system used by bureaus to process consumer disputes.
e-OSCAR
The industry system for processing credit disputes electronically.
File Submission
The process of sending Metro 2 data to credit bureaus.
Credit Report
A detailed report of a consumer's credit history.
Credit Score
A numerical representation of creditworthiness.
Tradeline
A record of a single credit account on a credit report.
Soft Inquiry
A credit check that doesn't affect credit scores.
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