Repo'd/collection question

[Anonymous]

In 1998 I purchased a vehicle in Florida. It was repo'd later that year. The car was sold at auction, but the collection agencies came after me for the full purchase price of the car. It now has been 11 years. The car loan is not on any of my credit reports and I have very good-excellent credit.

I currently live in Pennsylvania. I still get phone calls at work, home, and on my cell phone from the collection agency. They never brought a lawsuit against me and the loan is not on my score.

Do they still have a right to the money or to continue harassing me with phone calls?

[Anonymous]

Yes and no.  Yes they have a right to attempt to collect the debt.  No they don't have a right to "harras" you.  They are required to follow FDCPA as well as state collection laws.

You may notify them to "cease and desist" any communication in all forms and they are required to stop calling and writing.

They may not sue you now because the SOL has expired.

However, you still legally owe the money, not for the full loan amount, but for the deficiency (loan minus auction sale price).  A debt is not extinguished by SOL.  SOL just prevents them from suing, garnishing wages or attaching assets after that time period.

Only payment/settlement or bankruptcy actually extinguish or discharge a debt.  The creditor may continue to attempt to collect it forever.

On the practical side, though, if you notify them to cease and desist communications, you effectively have eliminated their ability to collect, because they cannot sue and now they cannot contact. 

[guiness56]

Just for clarification.  They can file a suit and if you were to show up, beyond SOL would be your defense.

I know you should be notified of any pending law suits but, CAs are not exactly honest.  They file suits all the time without the knowledge of the consumer. 

[Anonymous]

valid point, they technically can file suit and if you fail to defend, even possibly get a default judgement.  However, the judgement can be set aside based upon SOL, even after the fact.  But this would be additional steps, legal costs and general hassle to clear it up and possibly have to work to get it removed from credit as judgement.

Message Edited by txjohn on 04-11-2009 05:34 PM