Is auto lender Legally obligated to

I had a repo of an auto. it was just over a 3 year old car. I recieved a loan of $20,000 for it. I made the first 8-10 payments at least at just over 500 a month. they eventuallu found it and snagged it. I look on the credit file and the trade says I owe them $25,200 for this trade. Now I would presume once they repo it it goes to the auto auction.. correct? or at the very least gets liquidated in some manner.
Is the creditor obligated to deduct that amount from my trade entry? and if they don't deduct the amount the resold the vehicle for are they in any direct violation of anything?
Any advise on the way to go about disputing this? I posted before about just seeing if it worthwhile to attempt disputing a repo. But am kind of irritated that the new balance is not recorded on any of the trades for this acct.

Any light shed on this would be a great help. thanks

 

The car purchased originated in Missouri, but they repod it in WA state. It seems at the origination of the note they instantly add the interest I will pay over time to the loan amount. summarily when i first took the note out the balance reflected around 29,000 give or take. after paying the payments I did the balance is as it still stands on the file now. about 4000 and change less. they made NO adjustment. This car should have wholesaled out in worst case scenario around $9000. they often resold their repos through their own offices as I remember each time I went there to make a payment they had a chalk board with current cars with prices available to buy. I presume they tried to sell them this way before wholesaling them out thru the auction. my point being that even with the cost of recovery, that balance should still be reasonably below 20 grand.
And another thing, Since I didnt keep the car for any more than a year, was the amount on the trade which had 5 years of interest built into it, is that even legal? shouldnt they have taken the remaining principal and left it on the file, then deducted whatever they sold the car for?? I am thinking the balance due should be a way bit less than 24K and change...

 

If I go to dispute this repo in the near future, will these inaccurate reportings by wells fargo finance co (not wells fargo bank,, tho im sure they are all connected) prove to be their downfall? Because Id just a soon let the errors stand until I am ready to get the whole trade line removed. or is this simply wishful thinking. But I do recall for a fact they added all the interest of the loan of 54 months and tagged it to the principal and that toal (near 30k) was the balance reflected on the CR entry.
any thoughts?

 

Re: Re: Is auto lender Legally obligated to

well, then that sounds like a good argument. is little violation that will result in little more than the correct balance getting reported or is this a larger violation? Is there any way they can say they incurred $10,000 to skip tace me 2,000 miles away and justify why the balance is still in the mid 20s? mean they are obviously slimeballs screwing the credit impaaired and nothing is beyond them. I presume though that they would have to validate the costs. though it would seem even then that fabrcation isnt beyond them...