Hi Everyone,
What is the statute of limitations on an auto loan in New York?
Thanks
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Hi Everyone,
What is the statute of limitations on an auto loan in New York?
Thanks
Need more information please. Are you the owner of the car? Did you loan someone the money?
Thanks this8384 for your reply. In 2003 I took out a loan through BMW Financial in North Carolina for a used BMW. In April 2004 I made my last payment on the vehicle and I voluntarily turned the car to BMW; did a voluntary repossession of the vehicle.
I currently live in New York and am being sued in New York for the remaining balance of the car. That is, the difference the car sold at auction and the remaining balance owed for the car, approximately, $10,000.
As I am being sued in New York, I wanted to check on the NY statute of limitations the creditor has to sue me.
Also, the case is taking place in NY civil court
NY has a 6-year SOL:
Statute of Limitations - Open accounts for debt collection
Good luck with everything
Looks like you are out of luck. The SOL would start from the last activity on the account. The earliest date would be the date that they auctioned the car off which would be after April of 2004. So with a 6 yr SOL, they are within the time fram to file suit.
Quote:
Originally Posted by Hydropops
Everyone is right - they are within the NY Statute. I see no defense to this. Have you attempted to negotiate a settlement amount over the last four years or is it too late for that?
Thanks everyone.
My original understanding was that there was a 6 year SOL as well. However, upon doing further research it may be 4 year SOL under the Uniform Commercial Code. I wanted to see if my understanding of the laws was correct. 6yrs or 4yrs?
Under NY Civil Practice Law and Rules, Article 2--213, states the following actions must be commenced within six years 2. an action upon a contractual obligation or liability, express or implied, Excepts as provided in section two hundred thirteen-a of this article OR Article 2 of the Uniform Commercial Code or article 36-B of the general business law;
Uniform Commercial Code, Section 2-725 SOL
An action for breach of any contract for sale must be commenced within four years after the cause of action has accrued. By the original agreement the parties may reduce the period of limitation to not less than one year buy may not extend it.
Not sure about that. Judy is from NY and I'm pretty sure she would have mentioned if it fell under the Uniform Commercial Code. Also, most collectors are pretty good about making sure they stay within SOL; they don't want their money to slip away on a technicality.
But we aren't talking about a contract for sale, we are talking about a loan. The contract for sale is a separate part of the transaction. That contract simply states you would pay x amount and in return you would get a car. You then took out a loan where you agreed to pay the lender x amount over x years in return they would pay the loan amount to the dealer.Quote:
Originally Posted by Hydropops
So the sales part of the transaction was completed. It's the loan part that you are being sued about.
Quote:
Originally Posted by ScottGem
Scott beat me to it!
This isn't a contract dispute (that I can figure out). It's an auto loan.
Thanks everyone.
The UCC SOL makes sense now for a sales contract. Would an auto loan under NY Law then fall under Article 2 (Limitations of time) of the Civil Practice Law and Rules?
Specifically subsection 2, minus the exceptions, "an action upon a contractual obiligation or liability" making the SOL 6 years?
Article 2 (Limitations of time) of the Civil Practice Law and Rules, which states that the following actions must be commenced within six years:
1. an action for which no limitation is specifically prescribed by law:
2. an action upon a contractual obligation or liability, express or implied, except as provided in section two hundred thireteen-a of this article or article 2 of the UCC or article 36-B of the general business law;
3. etc.
More background on myself and the case:
I have a finance background, but was recently laid off due to the downturn in the economy. I am being sued for a BMW I owned in 2003. I have tried to settle with the collection agency, however, the amount they want me to pay per month to pay off the debt is more than I can afford. My fiancé, who was also recently laid off due to the economy, just recently had our baby. I guess when it rains it pours. We go to pre-trial conference on Monday, Jan 12. I spoke with legal aid here in NY and they informed me that the SOL for an auto loan was 4 years based on UCC SOL Section 2-725. I wanted to verify this information before going back to the plaintiff as more of a bargaining chip to try and get this case settled.
I would go back to the legal aid and ask why they feel 2-725 applies. I think an auto loan is a credit contract and not a sales contract.
Quote:
Originally Posted by ScottGem
Beat me to it unless I'm missing something here -
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