The most common way dealers damage consumer credit is by failing to pay off a trade-in vehicle's outstanding loan. Under Florida Statute § 520.07, a dealer who accepts a trade-in with an outstanding loan is required to pay off that loan within a specified period. When the dealer fails to do so, the original lender continues reporting the loan as active — and if payments are missed on a car you no longer own, those missed payments appear on your credit report.

Credit damage from a dealer's failure to pay off a trade-in can be severe. A single 30-day late payment can drop a credit score by 50 to 100 points. A repossession of the trade-in vehicle — which the dealer was supposed to pay off — can remain on your credit report for seven years and make it difficult or impossible to obtain financing, housing, or employment.

In addition to the FDUTPA claim against the dealer, you may have a claim under the Fair Credit Reporting Act (FCRA) against any creditor or credit bureau that continues to report inaccurate information after you dispute it. The FCRA provides for actual damages, statutory damages of up to $1,000 per violation, and attorney's fees.

To pursue a credit damage claim, you will need documentation of the original trade-in transaction, the dealer's obligation to pay off the loan, and evidence of the credit damage — credit reports showing the negative entries, any denial letters from lenders or landlords, and records of any disputes you filed with the credit bureaus.

If a dealer's conduct has damaged your credit, contact an attorney promptly. The statute of limitations for FDUTPA claims is four years, and for FCRA claims it is two years from the date you discovered the violation. Acting quickly preserves your evidence and your legal options.