Collection Notice over a city auto tax 13 years old?

Question

My wife received a notice from a collections agency over an auto tax for 1993 and 1994 from a city she used to live in, but moved away from. It also came along with $650 in penalty charges and interest over the principal. Why would a city wait 13 or 14 years before trying to pursue payment? What can we do about the penalties? Shouldn't have the city tried to find her sooner? My wife was unaware of the charges as she was working for a company that moved her around alot. Its possible that the bills were never forwarded to her.

Answer 1

The laws vary from state to state regarding the length of time a lien or debt can be active.

In California a judgement is valid for 7 years and can be renewed for another 7 after that its toast.

Taxes may present a different issue, however. BUT you have the right to request the collection agency for all documents which pertain to their claim. That should cite the law and from there you can find out about its viability and its enforceability since you apparently now live in a different jurisdiction.

You can also call the City directly and ask for copies of the laws and ordinances as well as ask them the question about the delay.

Until you get some explaination I would not pay anything.

.

Answer 2

Call them up and explain all this to them. Ask them to remove the penalties and then just pay the taxes.

The IRS will do this sometimes so I don't see why they wouldn't do it. But you never know until you ask.

If they insist on you paying the penalties consult an attorney about statue of limitations. And their lack of attempts to contact you.