Auto Loan SOL for Arizona or Texas?

Discussion in 'Credit Talk' started by jjjaz, Aug 16, 2011.

  1. jjjaz

    jjjaz New Member

    Hello all,

    Several years ago my wife purchased a car in Texas. When we started dating, she moved to Arizona and ended up turning in the car which was then sold at auction around 10/2006. We received a few notices about dates to be sold and amounts due at that time. Other than a letter regarding balance still owed at the beginning of 2007, we had heard nothing else about this account. No phone calls or judgement filed to our knowledge. Recently, we got a phone call regarding the deficiency. It has been about 4years and 9 months since the auction.

    I have looked at the various ARS pertaining to contracts and limitations.
    A.R.S. § 47-2725
    A.R.S. § 12-548
    A.R.S. § 12-544

    I believe the consensus is that auto loans are written contracts which have a statute of limitation of 6 years here in Arizona. My confusion is that there is also a section that sounds to me like the limit becomes 4 years if the contract was not originated in Arizona. And then there is another section that I have heard interpreted as a 4 year limitation if the collateral has been sold. In Texas, I am pretty sure the SOL is 4 years. So I am trying to determine if the SOL has definitely expired regardless of which state law applies or if we still have roughly a year of gray area in which they could file and win a judgement.

    Based on what I have read for via link from this site:
    Open Acct.: 3
    Written Contract: 6 in Az. - 4 outside Az.

    Open Acct.: 4
    Written Contract: 4

    We are trying to clean up her credit and this is the only one that is holding us up from applying for a new line due to fears of giving out too much info.

    Thank you for any insight you might have.
  2. JoshuaHeckathorn

    JoshuaHeckathorn Administrator

    I'm not a lawyer or an expert on SOLs, but my understanding is that the original contract is voided once the vehicle was repossessed and sold. The UCC then applies, and I believe the SOL is 4 years in all states from the date it was sold, which means the SOL expired last year.

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