Collection notice after 9 years?

Question

My car was repo'ed 9 years ago. I never received any word from the creditor after they got it back. Now, about every six months I get a letter from them offering to settle for $12,000. The account doesn't show up on my credit report. Can they collect? should I try to pay? Is the time limit up?

Answer 1

I don't know where the previous posters come up with a 7 year period for collecting on the debt.

I think they are confusing the reporting period with the collection SOL. Two seperate issues.

IF you had not received all of the required notices before and after the sale, which includes the deficiency notice - the repo would be considered an illegal repo and non collectible.
If you had moved shortly after the repo, the above statement may be a gray area since they could have sent the notices to the only address they had on you.

A repo voids the original contract - so the charge off that was reporting on your credit reports would have only been able to report for 7 years from the default.

If the original creditor had reported a trade line for the deficiency, it could only be reported for 7 years from the date the vehicle was sold creating the deficiency. If the debt was sold to a collection agency, it would still only be reportable for the same 7 year time span.

As for the collecting SOL, since the original contract was made void, the repo would fall under the UCC for a 4 year collecting SOL that would start from the date the vehicle was sold creating the deficiency.

IF they are collecting on the deficiency, and no judgment had been filed, then you are far past the legal collecting SOL.

IF a judgment was filed and they are actually collecting on the judgment - you would need to learn your states judgment collecting period to see if you are past it or not. You would also need to learn if a judgment is renewable in your state.
You should also check to see if there is a judgment, and if so, when the judgment was granted.

The collecting period on a judgment starts on the date the judgment was granted. If your state allows judgments to be renewed, then the collecting period will continue to run.

If you are unsure or want to check to see if they had gotten a judgment on you or not, call the county court clerk in every county you had lived in from the time of the repo (or the last address that the original creditor would have known), up until now. Ask if anything had been filed in your name.

If they are collecting on the deficiency, and no judgment was granted, you have a legal right to send them a SOL letter telling them the deficiency is no longer collectible.

You might click on my profile and click on the last link I have listed. Do some reading and ask any questions you may have in the Credit Forum.

Answer 2

This is much ado about nothing.

This is a zombie debt collector. All you need to do is "NOTHING".
Let them sue you in court if they persist, they very well should knwo they have no legal cause to bring this to you.

If they are foolish enough to actually take you to court..go with a smile on your face..once the judge tosses this outta court quicker than you can blink, you can then request a counter claim against them for damges/emotinal distress etc. And finally you may wish to report them to your local attorney general's office for fraud.

You might get a small financial reward for them waisting your time over this apparent fraud issue. Good luck.

I work at a major Law Firm.

Answer 3

I believe 7 years is still the limit of time for pursuing a charge off. If they received a "judgement" then I believe they can pursue and garnish for as long as it takes. If it is in fact a charge off, they may be fishing contact with you in order to renew the claim. Speaking with them to acknowledge the debt at this late date would return it to an active charge-off again, so I wouldn't speak to them unless you see court papers. I could be wrong, ask for a free consultation at a debt/credit service or an attorney.

Answer 4

If there's proof that the creditor is trying to recover money from you, you're liable to pay up even after the statutory lapsed of 7 years. Work out the final repayment plan with them and get yourself off the debt once and for all.

Answer 5

First of all, Echo is well versed and ready for any combat with these debt collectors.
Secondly, this link:
http://answers.yahoo.com/question/index;_ylt=AnHm9zo_ma1FGtn7sn61x3_sy6IX?qid=20070419184149AAlMFHc&show=7#profile-info-af326377759bb1f30ceac121e492719eaa

has an interesting running discussion on debt collection. I suggest reading Echo's comments, mine, and Studly.
Good luck!

Answer 6

There's something "fishy" about this... Go to wherever you bank- & ask them if there's a "statute of limitations" on that kind of debt. Someone may be trying to "scam" you... :(