can I still be sued for an auto repo after 5 years?

Question

I bought a new car in 2002. Within that year I unexpectedly had a baby and was unable to work because of child care issues. My husband was still in school, so there was no way to make the car payment, so we returned the car (voluntary repo).

Well, I never heard another word from the finance company, so I figured there was no residual on it. Fast forward five years...I am doing my annual credit report, and find my repo conveniently placed on my transunion report. It says it was placed on it in 2002, but for some reason, was never spotted by any other creditors (I was able to purchase another car -with a low apr, and have been approved for other credit cards).

Anyways now I find this on my report and am left wondering, can I still be sued for the residual ($8000) after 5 years. I never recieved a notice or a phone call. There was never a judgement placed against me either. Should I just wait and hope this falls off my report in 2 more years?

and I live in California

Answer 1

check your states "statute of limitations" on secured debt - it goes by date of last activity which could be last payment or the date of repo.

Answer 2

Acermill is totally incorrect about the 7 years starting all over again if this should go to collections. Collection agencies have to go by the original creditors dates and the statute of limitations and the 7 year drop off date still apply as if it never went to collections.

Answer 3

My guess is what will occur is the original lender will sell your unpaid residual to a collection agency within the next two years, and then your seven year love affair will start ALL over again.

The ability to file a judgment rests with your state's statute of limitations on such a debt.

Answer 4

If you never satisfied the debt owed, yes.

Answer 5

You sure can!