Car repo'd and charged off June of 2000, SOL is up for our state, collection agency called on it yesterday?

Question

Had a car repo'd in early 2000 and have not paid any money since, it was charged off in June 2000. The statute of limitations is up (6 yrs, for state of Maine). I understand that 7 years after the charge off occurs the bank has to remove it from the credit report. However a collection agency just called on it last evening, they do not own the debt are just attempting to collect it. If we refuse to pay them (as is our right being that the SOL is up), can the collection agency re-report it to the credit bureaus or are they unable to do so due to the fact that they do not own the debt? if they do report it does it have to come off in June of next year (when the neg. reporting deadline is up?) have heard conflicting information and need a clear answer, trying to get our credit square before home purchase....Thanks!

Answer 1

Since the SOL is up for you if they decide to sue you, you inform them that the SOL is up. If they try to sue, go to court, and state the SOL, and it will be thrown out of court. It will remain on your credit report 7yrs from the first time it was delinquent. If it does not fall off you credit report, you will need to call all the credit bureaus and dispute it as obsolete.

Answer 2

When a vehicle is repo'd the original contract becomes VOID !!!

A repo falls under UCC 9 for the statute of limitations - which is 4 years. You are long past the legal SOL for collections.

Also - if you were not sent ALL of the proper notices, or if you did not receive them in the legal time allowed - the repo would be considered an ILLEGAL repo. Any money due on the deficiency would legally be considered uncollectable.

If the call you received from the collection agency is the first time that you have heard from them, either by phone or mail, then they have 5 days to send a follow up letter. If they do not send a letter it would be considered a violation of your rights.

I would suggest that you do some reading on the sites I've listed. Learn your rights in dealing with not only the collection agency, but the original creditors tradeline on your reports.

Go to the first site and look under the Special Purpose Letters. Click on the link for Letter to Dispute Repossession Deficiency. Read the complete page and follow all of the steps listed.

If you have any further questions about dealing with this, go to the second link.
Do some reading in the newbie forum first, then go to the credit forum and either do a search for repo and read, and/or ask any question that you have.

Don't let them push you around for something that is legally out of SOL.

As for the reporting on your credit reports, if the original creditor has failed to send you all of the required notices, that item should be removed as it is no longer legally your debt. Also, if that was the case, the collection agency has no right to place it on your reports. (The letters on the first site I've listed will aid you in handling this.)

If the original creditor had sent you all of the required notices, then unless they are reporting correctly, it will remain on your reports for the 7 years. If they are reporting incorrectly, you have every right to dispute the inaccuracies and request correction or if not corrected, deletion.

If the original creditor had sent you all of the required notices, the collection agency can place it on your reports as long as they send you that letter within 5 days after their first contact with you. They must also wait a 30 day period to give you time to dispute before they report. If they do all of this legally and you don't send the dispute letter, then they can add it to your reports. They cannot reage the debt, it must fall off at the same time the original creditors report falls off.

The legal 'reporting' and 'collecting' SOL's for a repo starts the day the vehicle was sold that creates a deficiency.

If they call again - Do Not speak with them. The only thing you should ask them for is their address (if you don't have it) then hang up on them.

Answer 3

This is a good example of why you should not seek legal advice from Yahoo forums. These people simply never have a clue, and don't wish to take a few moments to research their responses. Instead they end up looking foolish.

When you discuss the Statute of Limitations, you need to remember that each state has differant laws governing it. And they also seperate types of contracts and debts.

Generally, credit card debt and other revolving charge accounts fall under "open" contracts, and the SOL is lower.

But written contracts will usually have a much longer SOL. Those are contracts for car loans, mortgages, promisory notes, or other types of secured loans.

In Maine, this is covered under Title 14 chapter 205.751 of the Maine law, and specified that the SOL on written contracts is 20 years.

You are confusing your car loan with a revolving account, which is 6 years.

Therefore your loan is nowhere near out of SOL, and they can continue to come after you.

However, regarding the credit reporting period, they can NOT post this to your account longer then 7 years, beginning on the date of delinquency. They can not repost this again, or it will be a violation of the Fair Credit Reporting Act.

But if they sue you, and win a judgement, they can place another report to reflect the judgement, and that will stay on for 10 years.

Sorry for the bad news....

Answer 4

Do not make any contact with the collection agency. Don't answer the phone or respond to their letters. If you do, they can open the account as a new debt.

Go to www.AnnualCreditReport.com and get your reports from the Big Three (for free). If the debt has been removed, you're good. If it hasn't then file a dispute online.

Answer 5

Call Clark Howard's consumer action center. You can find the number on his website http://clarkhoward.com/ It's free and they can tell you what you need to do. He's a consumer advocate and radio host. This sounds like a question he's dealt with before.

Many debt collectors use unscrupulous tactics and make threats they can't make good on. Likely this is a debt that was given up on and if they collect they get whatever you hand over. They'll tell you all kinds of things that may not be true. Make sure you know what the straight deal is before you hand over any money.

Answer 6

Instruct the collection agency that they are not, under any circumstances, to call you again, and if they do, you will report them to the state attorney general for prosecution for harassment. They are permitted to try to contact you by mail, but you are at liberty to ignore them. That said, you should consider whether there is justice in your non-payment of the debt. If you took money with an obligation to repay, but did not do so, it would be good to contact the original creditor to negotiate a payment plan.

Answer 7

they are hoping to get lucky by having you pay it. don't do it and don't talk to them. after 7 years they can't put the debt on your credit report. if they try to, then you can dispute it and have it removed. the statute of limitations just means that they cannot try to take you to court to try and collect the money. they can still "try" to call you forever. they are just grasping at strings. i would send the collection agency a cease and desist letter advising them that if they try to contact you via phone again then it would be considered harrasment. but otherwise don't tell them anything and don't admit that you owe anything. don't talk to them about the debt at all.

Answer 8

The agency can, and most likely will, report to a credit bureau. You need the charge-off documentation from the origianl lender, if you can get it, and send it to whatever credit reporting agency it shows up on. The bureau will do the investigation for you.
Good Luck.

Answer 9

The collection agency will only report you if you ignore them. If you tell them that this debt was settled with the loan company through a reposession, they will make a note and report it back to the originator of the debt.

They assume no communication is admission of guilt. If you actually talk to them they can note your objections.

Answer 10

Ok you probably have a scavenger collector after you. They will try to trick you with threats ect. But you are smart and you know the SOL. Car loans are concitered written contracts but i looked up Maine it is 6 years. If they continue to harass you, send out cease and disit letters out.. The will not even try to sue you. If they mess with your credit report you will have a law suit you can file against them.