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Voluntary Surrender

When you take out a loan for large purchases like a boat or new car, you agree to make regular payments with interest until the amount is paid in full. At that point you fully own the item and are no longer in any debt to a financial institution. Your credit report will reflect the loan as paid in full.

However, if you are unable to fully complete your payments and the loan becomes severely delinquent, not only will your credit suffer, your boat or car can be repossessed. Some people who know they are unable to fulfill a loan will decide to voluntary surrender and give the loaned item back, rather than force the lender to pursue a repossession.

The Impact of a Voluntary Vehicle Surrender

July 13, 2016

Dear Experian, I am considering a voluntary vehicle surrender. What ramifications can I expect, both financially and on my credit report and credit scores if I agree to surrender my...

Will Voluntary Repossession Affect Your Credit

August 7, 2014

Dear Experian, I bought a car about 2 years ago at a “buy-here-pay-here” lot. I have never missed a payment and have been a good customer. Since buying the car...

Voluntary Surrender Could Harm Credit Scores

February 26, 2014

Dear Experian, I recently co-signed for someone, and our relationship ended. They gave me the truck back and said they no longer wanted it. I have a car payment myself,...

Car Returned under Service Member Relief Act is a Voluntary Repossession

February 12, 2014

Dear Experian, I am in the military and currently serving in Afghanistan. Prior to my departure I turned in my car lease under the Service Member Relief Act. When I...

Voluntary Repossession Can Damage Credit Scores

November 20, 2013

Dear Experian, I am trying to trade-in my car; however, I am upside down on my current car loan. If I trade it, my payments will be really high. The...

Voluntary Surrender vs. Repossession

August 13, 2013

Dear Experian, If I voluntarily surrender my car to the financial institution carrying the loan, will it make a difference on my credit report? Or, is it a repossession no...

Voluntary Repossession Stays on Credit Report

August 3, 2011

Dear Experian, How do I get a voluntary repossession off of my report? It has been three months and the credit union has since sold the car. - OTT