I was recently contacted by a debt collector about a debt from a car that was repossessed 7 years ago. I did not know that a financed car had to have full coverage insurance on it at all times and had the car parked in a neighbors driveway at the time it was taken. My (Allstate)insurance was cancelled (as per my agent) because I had had an accident after being covered less than 3 years (which was supposedly company policy). I was informed that this was the reason the car was repossessed. This is the first I am hearing of any debt (after all these years) being owed. I had always assumed that they sold the car to recoop their money since the car was in perfect working condition and even had upgrades installed. Can they still legally pursue this debt after all these years? Car loan originated in 2000 and was repossessed in 2002. If the SOL is 6 years, how are they still able to pursue this.

SOL varies from state to state. Which state do you live in? What is the date of the very last payment they received from you?

When a car is repossessed, it is typically resold in an attempt to recover the money originally owed on it. However, the creditor rarely gets enough money from the sale to pay off the loan, which leaves the debtor - in this case, you - to repay the balance. You have neglected to do so, which is why they're trying to collect.

How long have they been contacting you regarding the account?