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this8384 · Sep 27, 2007, 08:58 AM

I have a friend who had a car repossessed quite a few years back. The amount that they used to claim was $9,341 but they're claiming that he now owes them almost $12,000. He doesn't have $12,000 lying around and he says the car wasn't worth even $3,000.

I'm wondering how they can continue to sue him if the car was repossessed, how they can add nearly $3,000 to the balance owed, and what he can do to get this off his credit. He had another debt that was much, much smaller which was written off because (I think it was called)the Wisconsin statute of limitations is only 6 years; they thought he lived in Texas and the limitations down there are apparently longer. How long ago does this repossession need to have been in order to get this debt erased?

tickle · Sep 27, 2007, 09:17 AM

If the car was repossessed, then they got their money back. The amount is more because they added interest. Where are they getting their figures from ? They have to tell him this or 'no ticky no laundry' as the saying goes. Proof, proof, and more proof. It would be interesting to find out where they bought the claim from, possibly the dealer who sold your friend the car.

kanicky73 · Sep 27, 2007, 09:28 AM

Here is how that works. If he owes $9341 and they reposess the car and resell it to recover some of their money, chances are they only got 4 or 5 thousand for it. Leaving a balance of about $5k. On that amount they will tack interest, late fees etc. He needs to call them and get it straightened out and hope maybe they will "settle" the account for a lesser amount. Just because the creditor reposseses something, doesn't mean you don't owe them anything anymore.

this8384 · Sep 28, 2007, 08:11 AM

He only owed about $4,000 at the time of repossession. I understand the addition of interest and other fees like that but $8,000 in interest seems a little excessive.

I'm still wondering about the statute of limitations. Like I said, in Wisconsin, you're only allowed to collect for 6 years; he's been living here for over 9 years. Shouldn't that in itself exempt him from payment?

ScottGem · Sep 28, 2007, 09:09 AM

He borrowed a sum of money agreeing to pay that money back with interest. The car was put up as security for the loan. When he default the car was repossessed and sold at auction. Generally, the car would not have been sold for more that the outstanding balance. So he was now responsible for that balance. If it wasn't paid, then interest and fees continued to accrue on it.

No, the SOL has NOTHING to do with his obligation to pay. The SOL only controls the time frame the creditor has to use legal means to collect. The obligation to pay NEVER expires.

However, there may be extenuating circumstances that allow them to sue. The SOL goes from the last activity on the debt. So there may have been some activity that restarted the SOL.

this8384 · Sep 28, 2007, 03:36 PM

I get what you're saying but that's not the situation. He didn't put the car up as collateral for another loan; when he purchased the car, he got a loan for it. He defaulted on the loan, thereby leading the dealership to repossess the car. When they repossessed the car, they obviously sold to to another purchaser, which would have cleared what he owed to them.

I'm still not able to figure out how they can add that much to his balance. The car wasn't worth $9,000 when he bought it; like I said, he had a loan on it for about $4,000. It wasn't like he completely trashed the car before repossession; he keeps his vehicles in immaculate condition.

I don't understand how they can keep coming after him for something that they've already gotten their money out of. I get what you're saying about him having an obligation to pay his debts, but these people have already gotten paid and they're still trying to collect more. That's why I asked about the SOL. What types of activity could keep renewing it?

ScottGem · Sep 28, 2007, 04:08 PM

No. You don't get what I'm saying. When someone takes a car loan the lender puts a lien on the car. Which means the car is used for collateral. That's SOP.

And no, the only way the resale of the repo vehicle would cancel the debt is if the sale amount was more than the debt. If it didn't then They haven't gotten remibursed for the amount they lent him. And interest compounds causing the balance to rise to ridiculous amounts.

this8384 · Sep 28, 2007, 04:33 PM

So what can cause the SOL to keep renewing?

ScottGem · Sep 28, 2007, 04:36 PM

Depending on where one is located, just an acknowledgement of the debt could restart it. Definitely any payments.

this8384 · Oct 1, 2007, 08:19 AM

He hasn't acknowledged the debt or sent a payment because he's always said that they got their money out of it. That's why I don't understand how they can continually keep this on his credit after almost 10 years.

kanicky73 · Oct 10, 2007, 02:40 PM

Did he ever call anyone to ask them what the balance was? That in itself will start the whole date over.

this8384 · Oct 10, 2007, 03:48 PM

Nope; like I said, he still contends that he doesn't owe them anything. That's why I don't understand how they can keep charging interest and keep it on his credit

excon · Oct 12, 2007, 06:23 AM

Originally Posted by this8384

That's why I don't understand how they can keep charging interest and keep it on his credit

Hello again, this:

You don't understand, because you don't listen. ScottGem told you exactly WHY they keep charging interest. I guess you don't like that information, so you reject it - just like you did with me.

I don't understand why you ask questions, and ignore the answers??

excon

this8384 · Oct 13, 2007, 05:12 AM

No, I don't ignore the answer. If you bothered paying attention to what was said, I stated that the Wisconsin SOL is 6 years and he has lived here for 9. With the SOL at 6 years and him not acknowledging the debt, I repeat again: I do not see how they can keep this on his credit. It is not collectable anymore.

Go answer someone's question rather than stalk me just because I don't agree with you.

excon · Oct 13, 2007, 05:54 AM

Hello again, this:

If you don't like what I'm saying, complain to the management. However, if you continue to post on a public board, I'll continue as well.

Believe me, I'm not doing this for YOU. I got it. You will NOT be convinced of anything! However, it may surprise you, in your arrogance, to learn that you're not the only one who reads these boards.

You must understand the difference between a collection agency and a credit reporting agency. They're not the same. Like McDonalds and Zale's Jewelers aren't the same. One has one business - one has another. The credit reporting bureaus don't care whether a collection agency collects. They don't care that they can't sue. They don't care about anything at all except reporting someone's credit history. That's their job.

Go read the Fair Credit Reporting Act if you're interested in finding out what the law is on the matter.

You also don't understand how the Statute of Limitations work. They run from the date of last activity - NOT the date he decided not to pay.

I know you want things to be different than the way they are. You're not the first like that here, and you won't be the last. Have a nice life.

excon

ScottGem · Oct 13, 2007, 07:00 AM

Originally Posted by this8384

I do not see how they can keep this on his credit. It is not collectable anymore.

That's not correct. A valid debt is ALWAYS subject to collection. A debt is a person's promise to pay. That promise never goes away. The only thing that changes is what methods the creditor has to force them to pay.

this8384 · Oct 13, 2007, 02:48 PM

I get what you're saying about debt always being subject to collection because it's technically a promise to pay and no, a promise does not void itself. I'm just a 3rd party trying to get all information. I'm not sure how else to word it... I guess what I'm really trying to find out is how they can continue to call him and try to collect when it's past the SOL. I didn't think that was legal to do; I thought once the timeframe for SOL ran its course you pretty much lost your chances of legally recovering the debt... am I completely retarded about that? *lol*

Again, I know that the SOL is renewed when any type of admission of debt is made(i.e.: payment, verbal admission or inquiry as to the amount, etc.). However, he hasn't done any of this and they still try to collect. That's why I keep asking: since the SOL has come and gone, how can they legally keep calling him? Are they just trying to get a verbal admission on tape so that they can renew the date? And is there any way to clear this off his credit report?

excon · Oct 13, 2007, 03:11 PM

Originally Posted by this8384

I thought once the timeframe for SOL ran its course you pretty much lost your chances of legally recovering the debt....am I completely retarded about that? *lol*

Hello again, this:

No, you just don't understand. Hopefully, now you will.

With an expired SOL, they can't sue. That's ALL they can't do. It doesn't mean they can't try to collect. Calling somebody up on the phone and hassling them about the debt is NOT suing. Putting a black mark on their credit report is NOT suing. Sending them nasty letters is NOT suing.

excon

ScottGem · Oct 13, 2007, 05:53 PM

When the SOL expires the creditor loses the ability to use legal means to recover the debt, That means they can't bring suit in court. That's all! They can still dun the debtor.

JudyKayTee · Oct 14, 2007, 08:43 AM

If this went into collection some years ago the interest and fees would add up very, very quickly, interest upon interest. And, again, as others have said - once the car is repossessed it can be sold for any amount and your friend owes the balance between what was received at sale and the loan. Nobody says the car has to be sold for what it's worth - somewhere your friend has paperwork indicating how the current balance was arrived at. (And these things can and often do stay on your credit report for 10 years; every time the collection is reopened the time is extended.)