Legal Question in Insurance Law in Florida

Hi,

I financed a vehicle in 2007 , and purchased the optional GAP coverage from the dealer (chryslerfinancial). The vehicle was totaled in 2009, and after some time the GAP coverage took care of my outstanding insurance balance as agreed in the contract.

My question is: Why does this show negatively as a charge-off on my credit history? It was not my fault as a consumer (as I took precaution with the purchase of the GAP), and it shouldn't reflect me negatively on my credit history.


Asked on 6/24/12, 11:21 am

1 Answer from Attorneys
Barry Stein De Cardenas, Freixas, Stein & Zachary

I suspect it is due to the length of time it took to process and pay the claim. That is a guess without seeing the credit report. There are attorneys who specialize in this area of law and if you want to know how to handle it you should contact one of them. You can also provide an explanation to the credit report agencies which they have to append to any credit requests which are made. I would not do that though without speaking to an attorney first to make sure all appropriate information is contained in the letter.

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Answered on 7/09/12, 4:36 pm


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