Bad Credit Agency

Can a bike that was stolen, but paid off by the insurance be listed in adverse accts on my credit history???

I just got my annual free credit report. Last year my motorcycle was stolen. The loan was paid in full by my insurance. Now the loan shows up as an adverse account. Can they list it as a bad account even though it was paid in full by the insurance company??? Thanks for all the answers so far. Some details: I continued payments while the insurance worked on the claim. After 50 days the insurance paid everything except about $700.00. Then GAP kicked in . They gave me the runaround but I continued paying from the Harley Credit statements. After I threatened GAP with a lawyer they paid and I actually received a refund for an overpayment. On the credit report the account is listed under the adverse account section with a remark " paid by insurance". No late payments are listed on the account and the balance is zero and past due is zero. Pay Status shows as paid.

Public Comments

1. if you failed to keep the payments up while the insurance company was paying off the loan, yes they can report the missed payments as late.
2. not if it isn't insured
3. Yes they can, if there were payments prior to it being paid in full that were late it will still report as a delinquent trade. This will stay on your credit pay history for 7-10 years depending on your state guidelines. As far as if it was not paid off fully and there was a balance that could have been owed due to late fees that you might not have been aware of you need to contact that Company to go through what is let. If you have a deductible that was taken out of it per the insurance that could too have left a balance. Do be aware that if you had GAP insurance to cover what the insurance did not pay there are sometimes things that the GAP will not cover you will need to read your sales contract for that.
4. no! But many people assume it was paid in full. Sometimes there is a GAP between what you paid and the settled amount. If that is the case then yes. If not then look at the history and it may have been during the time that you were making payments. If Not and you are correct then ask them to remove the negative actions from the report and give them the proof needed. Also dispute this with the credit reporting companies. If they fail to remove and you are denied credit based on their reporting you can sue them for up to 3 times the amount of credit lost
5. What exactly does it say? At the time the loan was paid off, were you behind in payments? If you were, then that's probably what is showing up. If you owed more on the motorcycle then the insurance covered, e.g., you still owed $5000 but the value of the bike was only $4000 so that's what the insurance paid, there would have still been a balance on the loan. If you didn't pay it, then that's what is showing up. If you were current on your payments and the insurance paid off the loan, then file a dispute with the credit reporting agencies.