topic Re: Repo Deficiency Question in Rebuilding Your Credit

Repo Deficiency Question

baller4life — Sat, 22 Feb 2014 21:06:35 GMT

I had a vehicle voluntarily repossessed in August 2011 and never received notice of the sale or any deficiency balance left. I wasn't made aware of this $7k balance until I pulled my credit reports. I successfully disputed it off of Transunion. However, it was verified by EX and EQ a few times. I wasn't properly notified of sale ever. Is the SOL from the date of repo or date of deficiency? My last payment was December 2010 and the SOL in Texas is 4 yrs. I don't want to stir the pot and end up getting a judgment filed for the balance. Thanks in advance for your help. This is one of three baddies left on EX and EQ and I need it GONE!!!!

Re: Repo Deficiency Question

baller4life — Sat, 22 Feb 2014 20:57:55 GMT

Anyone? Mods?

Re: Repo Deficiency Question

gdale6 — Sat, 22 Feb 2014 21:02:44 GMT

Anything to do with Why Chat cannot be discussed on this board per his request.

Re: Repo Deficiency Question

baller4life — Sat, 22 Feb 2014 21:04:41 GMT

My deepest apologies. I had no idea. I will edit that part out. But, I do still need an answer. When does the SOL start? From date of first late or from repo?

Re: Repo Deficiency Question

juggalo9er — Sat, 22 Feb 2014 21:05:41 GMT

can someone pm as to what whychat is?

Re: Repo Deficiency Question

baller4life — Sat, 22 Feb 2014 21:08:27 GMT

@juggalo9er wrote:
can someone pm as to what whychat is?

Edits have been made. You can google it. Credit repair letters that apparently cannot be discussed here.

Re: Repo Deficiency Question

gdale6 — Sat, 22 Feb 2014 21:15:29 GMT

It is the DOFD just like a CC account for the SOL.

Re: Repo Deficiency Question

baller4life — Sat, 22 Feb 2014 21:18:46 GMT

That is my confusion. I have read that and then I have read the repo voids that and it then becomes from the date of the actual repo. Confused!!

Re: Repo Deficiency Question

Anonymous — Sat, 22 Feb 2014 23:22:39 GMT

As far as how long it will remain on your CR it is 7.5 years from the DoFD, just like any CO or collections.

Re: Repo Deficiency Question

baller4life — Sat, 22 Feb 2014 23:29:41 GMT

That part I understand guiness56. My question is when the SOL starts. Is it from date of last late or date of repo?

Re: Repo Deficiency Question

gdale6 — Sat, 22 Feb 2014 23:50:47 GMT

I think I was in error about the SOL running from DOFD, I believe it would be the date of repo, excerpt of TX SOL law:

§ 16.004. Four-Year Limitations Period

(a) A person must bring suit on the following actions not later than four years after the day the cause of action accrues:

I believe the cause of action would be the repo in this case.

Re: Repo Deficiency Question

baller4life — Sat, 22 Feb 2014 23:53:04 GMT

Thx gdale6 that's exactly what I needed to know!!

Re: Repo Deficiency Question

Anonymous — Sat, 22 Feb 2014 23:54:48 GMT

From the TX AG:

Under Chapter 16.004 of the Texas Civil Practice & Remedies Code, Four-Year Limitations Period, the statute of limitations for filing suit to collect a debt is no later than four years after the cause of action accrues. An example of when the cause of action accrues is the date on which the debt is declared to be in default”

To me that sounds like the DoFD of the account and not the date it was repoed.

Re: Repo Deficiency Question

RobertEG — Sat, 22 Feb 2014 23:57:12 GMT

My take.......

Two separate issues.... credit report exclusion, and expiration of the SOL.

As for credit report exclusion, I can see your dilenna as to what is the relevant date of a repo, as the statute itself is not clear.

A repo is not explicitly listed under FCRA 605(a) as having its own, separately-identified exclusion period.

Any item not having its own, separate exclusion period listed under one of the other sub-paragraphs of section 605(a) falls under the "any other adverse item of information" catch-all provision of subsection 605(a)(5). Under that provision, the exclusion period is set as 7 years from the date of the adverse action itself.

Thus, it would be 7 years from the date of the repo.

However, subsection 605(a)(4) could possibly take precedence, which relates, to an account "charged to profit and loss or subjected to any similar action."

as stated in clarifying secton 605(c).

Under that provisioh, the date of exclusion would be 7 years plus 180 days from the DOFD on the OC account.

So the question is whether the repo constitutes any action for which they charged a part of the debt to profit and lsss.

That brings the issue back to your question of how they disposed of the vehicle, and thus whether they sustained any loss that could be charged in their books to profit and loss. Thus, your question as to their final accountng of the vehicle is, in my opinion, critical to the determination of the relevant credit report exclusion date.

A creditor who reports any information to a CRA incurs the continued obligation to promptly update that information so as to reflect its current accuracy. FCRA 623(a)(2).

They most likely were requried under the pertinenet repo requirements of your state to have provided such an accounting, but they are certainly required under the FCRA to promptly update the current debt balance so as to reflect its current amount.

I would thus send the creditor a direct dispute of the accuracy of the current balance being reported on the debt, which clearly is dependent upon what they recovered after taking possession of the vehicle. They may also have been obligated under your state repo statute to have provided a detailed, final accouting.

As for SOL, the date your first became delinquent would define the date that they were first entitlted to bring legal action, and thus would most likely set the period for running of the SOL, assuming that your state has no other relevant reset provisions, such as a payment on the debt.

If their repo is considered as a similar action to a charge to protit and loss, then DOFD would also be relevant to credit report exclusion.

If the repo is not considered as a similar action to a charge to profit and loss, then the DOFD would not be relevant.

In summary, in my opinion, it all seems to depend upon the one item they have not provided...... a final accounting of their disposal of the vehicle, and thus an accounting of the debt and any associated business loss they may have incurred.

Re: Repo Deficiency Question

Anonymous — Sun, 23 Feb 2014 00:09:42 GMT

No, Texas does not restart SOL upon payment after it has been repoed, CO'd or sent to collections.

They are clear that the cause of action is when you became delinquent on the debt. A repo is a status of the debt, just like a CO.

And for what it is worth, I know first hand having been raised in TX and have a repo from the state.

Re: Repo Deficiency Question

baller4life — Sun, 23 Feb 2014 00:22:30 GMT

The OC is Mid-Atlantic Finance and I sent them a direct dispute in December and they responded with a copy of my original contract and a statement of my account. They sold the Isuzu Rodeo for $811 at auction. Of course far below fair market value. And never sent me any paperwork regarding the sale. They charged off the remaining balance of $6700. Never updating that amount until my first dispute through the CRAs back in October. Every since they have updated monthly the Past Due amt of course including interest. I knew it would be reported on credit for 7yrs. My concern was my states SOL for the the account. Dofd or date of repo. Have read so many conflicting answers. I want to fight this account head on but I don't want to bring on a lawsuit either. I feel as though the simple fact they did not notify me of the sale gives me leverage against a possible lawsuit because they were in fact required to notify me. Correct?

Re: Repo Deficiency Question

gdale6 — Sun, 23 Feb 2014 00:23:57 GMT

@Anonymous wrote:
From the TX AG:

Under Chapter 16.004 of the Texas Civil Practice & Remedies Code, Four-Year Limitations Period, the statute of limitations for filing suit to collect a debt is no later than four years after the cause of action accrues. An example of when the cause of action accrues is the date on which the debt is declared to be in default”

To me that sounds like the DoFD of the account and not the date it was repoed.

Ok if this ruling is from the TX AG then I would take it to be the guiding law & since you have been thru it in TX (guinness56) I would take this to be true OP.

Re: Repo Deficiency Question

RobertEG — Sun, 23 Feb 2014 00:31:10 GMT

Check out your state code regarding obligations of a creditor following a repossession of property.

You might have your own cause of action against them, totally apart from any credit reporting issues.

In view of the facts, I would agree that the DOFD would be the relevant date, both for credit report exclusion and running of the SOL, as it is the date at which they first had a cause of action against the debt. The debt was clearly delinquent at time of repo, and thus would not set the first date upon which they could have brought their suit.

The determination of the SOL issue would ultimatley be decided by the judge at trial. I think you have a good case for DOFD.

Re: Repo Deficiency Question

baller4life — Sun, 23 Feb 2014 00:50:25 GMT

Thanks everyone for your help. So now that I am clear on the actual SOL, should I wait till December to continue fighting this account? That is the 4yr mark from the dofd. And if so, what recourse do I have to get this account removed from Equifax and Experian?

Re: Repo Deficiency Question

Anonymous — Sun, 23 Feb 2014 00:56:42 GMT

In Texas they are bound by law to notify you of the disposition of the vehicle. If they don't they are barred from trying to collect the deficiency. You could also claim statutory damages.

They were supposed to notify you no later than 10 days before the sale of the vehicle in case you wanted to redeem it.

If they didn't do any of that they could be in a heap of trouble.