Auto: Is DOFD the day the car was SOLD?

[woozy]

I was talking to a neighbor about credit, and something interesting came up.

He had an auto repo 5 years ago, and has the impression that it will be gone after 7 years/180.

BUT he says he never got a settlement statement. He tried to settle at some point, but they said that they didn't have the car. It evidently was towed, and there the trail ends except for the pop on his credit.

I fear that the UCC on an auto contract says that the time begins to tick on the day the car is SOLD.

Oops. 

Could this be bad, really bad?

[Anonymous]

The DOFD is the month he because 30 months late, that eventually led to the reposession. If he made a payment at some time, that brought the balance current... that would reset it, but as long as he never got current after that first missed payment, that is your DOFD. Doesnt matter when the car was sold, repo'd etc.

[woozy]

Evidently the SOL can start when the car is repo'd.

I read a little more about this, and an auto repo can be much more complex than a credit card default.  State law has a big influence. 

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[Tazman81]

You are thinking of 2 different things.

DOFD (Date of First Deliquency) is for the credit report.  An item will fall off of your credit report 7 years after the DOFD.

SOL (Statute of Limitations) deals with the legal system.  This is the legal amount of time that a company has to sue you in court to collect payment.  Each state is different.  I could be wrong, but I have not heard of selling the property as a legal way to reset the time on a debt.

[woozy]

Only on auto loans, when the UCC can be invoked.

I get the idea that this rarely happens, but can.