mel asked:
I owned a vehichle that was repossessed 2 years and nine months ago. We received letters from the finance company after it was sold a t an auction, telling us that we owed the balance. I did not respond to the letters. It has been almost three years ago,and now I am getting phon calls from a collection agency that is has been turned over to, saying that they will collect the balance owed. With or without my help. Can they do that after almost three years has went by?
I owned a vehichle that was repossessed 2 years and nine months ago. We received letters from the finance company after it was sold a t an auction, telling us that we owed the balance. I did not respond to the letters. It has been almost three years ago,and now I am getting phon calls from a collection agency that is has been turned over to, saying that they will collect the balance owed. With or without my help. Can they do that after almost three years has went by?
It depends on the state.
But, I don’t know of any state who’s SOL laws are less that 6 years for this kind of debt. Time to pay up.
Yes. The limit in most states is seven years. Open your wallet.
Yes, you still owe the balance that you’ve ignored. Also, there will be interest on that unpaid balance that you legally owe also.
Well, since you didn’t pay according to the terms of the contract, then this would be a breach of contract. Each state has a different SOL regarding breach of contract. Some as little as three years, others as much as 10 years. Just pay what you owe. How could you think you would avoid paying your obligation?
7 years! That same thing happened to me. Yes they can do that. I just waited it out. I did not pay them. When the 7 years is up…dispute that claim to the credit bureau…if they do not respond within 30 days….that debt is thrown out. If you do not want to wait that long…you can try to get that expunged from your credit or just pay.
5 years in most states
Oh yeah.
You still owe the balance. They can continue to attempt to collect from you indefinitely. However, it can only be on your credit report for seven years from the date of last payment. They will likely sue you before that time, however, and once they have judgement, they can continue to attempt to collect from you until it is paid in full. A judgement is good for 10 years on your credit report UNLESS they renew it, which they will contiuously until you pay it.
It would be in your interest to pay it now. If they sue, then they will be awarded court costs, collection fees and interest on top of the balance. Many times, those fees can exceeed the balance to begin with. And since this is a contract that you failed to abide by, it has a lot more sticking power than most other forms of debt.
You owe the money. You need to pay it.
First, when you sign a car contract your legally bind to that. So even if you don’t make the payments and they reposes it and sell it. You still owe the outstanding balance.
Second, you could take it to court, it’s possible that you could appeal to get this debt removed since they did reposes the car and sell it.
Third, the only other legal way to legally erase this debt and not pay it is to file bankruptcy.