Yes, they can put it on your credit if they report it to the credit bureaus. This is because the debt you owed to the dealership is still considered a valid debt, even if you voluntarily returned the vehicle.
If the dealership does report the debt to the credit bureaus, you can dispute the accuracy of the report with the credit bureaus. However, in order to successfully dispute the report, you will need to provide evidence that shows the debt is inaccurate, such as proof that you returned the vehicle voluntarily. Here's what you can do:
1. Contact the dealership. As soon as you voluntarily return the vehicle, reach out to the dealership in writing to let them know you are returning it due to the engine issues and that you expect the contract to be canceled. Keep a copy of all correspondence with the dealer.
2. Review your credit report. Get copies of your credit reports from the three major credit bureaus (Equifax, Experian, and TransUnion) to see if the debt has been reported. You are entitled to one free credit report from each bureau per year.
3. Dispute the incorrect information. If you see any inaccurate information on your credit reports, such as a debt that is not yours or that has been incorrectly reported, you can dispute the information with the credit bureaus. You will need to provide documentation to support your dispute.
4. Follow up with the dealership. If the dealership does not remove the debt from your credit report after you have disputed it, you can contact them directly and request that they do so.
5. Keep records of all communication. Keep records of all communication you have with the dealership and credit bureaus, including letters, emails, and phone calls. This documentation will be helpful if you need to escalate your dispute or take further action.
