A car was repossessed in April 2003 that I co-signed for. The owner passed away and I started to receive calls

Question

from a collection agency last Sept. and they quit calling in Jan. 2007. I got a letter from Honda that said Cancellation of Debt. Now today I get a call from another collection agency about this debt...saying that this debt wasn't cancelled..What can I do about it. I'm in PA and the statute of limitation runs out after 4 yrs. They repossessed the car the first week of April 4 yrs ago. When does the statute of limitations begin on car loans??

Answer 1

If Honda sent you a cancellation notice, they might also send you a 1099C. If they do, you would have to enter it on your taxes as income.

Slabberd is correct - repo's void the original contract and the deficiency falls under the UCC with a 4 year collecting SOL.
The SOL starts to run on the day the vehicle was sold creating the deficiency.

If you did not sign the "back" of the original contract - you are not liable for the deficiency. The front of the contract is for the original purchasers liablility in paying, the back is the co-signers liability in paying

Even though you were the co-signer - you still have the same rights as the person you co-signed for in a repo situation.

If the original creditor failed to send "you" all of the required notices before and after the repo and the sale (generally within 2 years of the sale), you are not liable for the deficiency. Legally the original creditor "must" send the notices to both the person who purchases the vehicle and the co-signer.

You might do some reading on the following
http://whychat.5u.com/repoltr.html

(that letter has a lot more teeth to it then a simple debt validation letter)

If you have any questions about how to use it, go to my profile and click on the last link I have listed and ask your questions in the Credit Forum.

Order your credit reports to see if the collection agency or the original creditor are reporting on them.

IF you did not sign the back of the original contract and/or if the original creditor failed to send you all of the required notices before and after the sale, you are not legally liable for the deficiency - (or the 1099C if one should be sent)
If that is the case and they do send a 1099C, I would suggest speaking to an attorney about it.

Answer 2

I would forward the cancellation of debt (not the original, but a copy) to the new collection agency, along with a letter explaining the situtation. They might not be aware of that cancellation. As far as the estate paying it off goes, that has to be listed on the estate's inventory, and filed with the county courthouse. If it wasn't filed as a claim against the estate, it wouldn't have gotten paid. I'd start there and see where you go. Good luck~

Answer 3

The owner's estate has to cover the liability first. When the estate has nothing left to pay down the bill, it falls to you.

Next time ANYONE calls on the debt, ask for documentation proving you owe the money, and don't take "no" for an answer. They're required to provide it.

When you get the documents, ask your original loaner about the balance and payments in detail. (They are required to provide it.)

If either of them refuse to give you full detail about what was owed and what was paid before it reached you, they have no grounds to collect. Both of them have a burden of proof, and they have to satisfy the burden within 60 days of your formal request (usually you don't have to put it in writing, but to cover yourself, you might have to, and if you do, make it a registered "return receipt" mailing).

Failure to provide evidence makes the debt legally uncollectible.

Answer 4

Repossessions are covered under UCC. The Statute of Limitation is four years.

Answer 5

you have the letter as proof of the cancellation of the debt, so i would cotact the atty general and ask. why should there be a car loan still when they have the car?

Answer 6

The first poster is correct.