Will they still come after me?

Question

I bought a car from Ugly Duckling in 2001. It fell apart in 3 months, and we gave it back to them. My last payment was in Feb.,2002. There is a statute of Limitations in Ga, of 6 years. The Duck sold their Accounts Receivable to Associated Receivables, in Augusta Ga, in 2005. We have gotten Interrogitories from them in Feb. of 2007. Can we expect that they will come after us before March when the SOL is expired?

Answer 1

If the repo happened in late 2001, early 2002 then you are already out of the collecting SOL

A repo voids the original contract. Since the original contract is void, it no longer falls under the states written SOL statutes. The repo deficiency falls under the UCC for a 4 year SOL. (Article 2, § 2-725(1) of the UCC)
The 4 year SOL starts to run on the date the vehicle was sold that created the deficiency - which is generally a month or so after the repo.

If Ugly Duckling failed to send all of the required notices or failed to sell the vehicle in a legal and timely manner, then the deficiency cannot be claimed and repo becomes void and no longer legally collectible. (Article 9, §9.506 of the UCC and your states RISA & MVISA statutes)

Have they already filed suit ?? Were you served ??
I ask because creditors and collectors generally do not send out interrogatories unless it is for a filed law suit.

If you were never served, you should contact your county court clerk and ask if anything had been filed in your name.
If there is a suit filed in your name, go to the court clerk and request a complete copy of the file. BE SURE the service papers are included in that copy !!!

If you had been sewer served, you may want to find a lawyer.
To not only have the case dropped for improper service but to also request a counterclaim against them for their violation.

If they followed your states service laws and the suit was filed "after" 4 years had passed since they resold the vehicle, you can still use an affirmative defense of SOL (plus file a counterclaim against them for filing suit on a time barred debt)

If there is no suit filed, I don't know why they would send you a Discovery (maybe they are just weird) you might send them a letter informing them the collecting SOL had passed.

You might click on my profile on here and click on the last link I have listed. Go into the Credit Forum and ask where you can find the Repo Letter sample template.
The repo letter has all of the info on it - UCC, case law to back up the SOL, etc. (if they had filed suit, that case law may also help you)
The site is a free site and the sample letter is also free.
If you have any problems understanding the repo letter or you are unsure of exactly what to do, feel free to ask in that forum.

Answer 2

Try to resolve the issue with them because if you don't it will never end. This collection company will sell your account to another one and on and on.

The best way is to simply work out a deal with them -- offer to pay so much within a certain time frame in exchange for a letter from them saying you have satisfied the indebtedness. Also, require that they report the payoff to the credit reporting agencies.

Even with all of the above you will still have a collection on your credit report but you will also have on file with the credit reporting agencies that you took care of it.

Answer 3

Quite possibly.

If they do and they end up suing you, the court could order your wages to be garnished.

Also, the SOL is a defense against someone suing you. If the SOL has passed they cannot sue you, BUT, just because the SOL has passed doesn't mean the debt goes away. They can still attempt to collect forever.