How would the SOL work when it comes to CA's? for example if a car loan was signed back in 1995, then the car was repossed and the amount charged off, then comes along a CA who buys the account. would the SOL start from the original signing of the contract with the OC, or once the CA aquires the account ( could be 3 years later), does the SOL start over again from the time the CA reports it to the CRA's. kathy
The SOL starts from when the debt first went delinquent with the OC. A CA cannot reage a debt, and if they are doing so, that is a violation.
ok, let me make sure I have this straight in my head. I have the OC listed as date opened: mar 1996. which I 'm assuming that is when it first went delinquent. Then I have the CA listed as date opened 1999, which I'm assuming again that is when they are saying it went delinquent. I'm assuming with that info that the CA has re-aged the acct??? I'm sorry bear with me I'm just really confused on this one. kathy
On a repo, assuming it was done legally by your State laws, any deficiency from the resale is collectible for the statutory period in your State's repo laws, some have a separate SOL, others put it in with written contracts, it starts for SUING purposes,from the "cause of action" which is NOT your first delinquency on the account, but the repo sale that produced the deficiency. IF you didn't get all the paperwork done according to your State's laws on repos, the creditor or his assigns has NO claim for any deficiency.In fact, in many States they can be fined and sanctioned under the State's usury laws. The "reporting " SOL first date still remains as the first delinquency on the original account.
Check very carefully to make sure your creditor followed the law in regards to your reposession. Here in Pennsylvania the car is required to remain in the county in which it was retaken for 15 days. Did you get the name of the company that repo'd the car? Did you ask where it was being taken? After the repo the creditor has to provide an opportunity for "redemption." (Again in PA) This doesn't mean that you can pay them the past due amount and have your loan reinstated, it means that they have to provide you the opportunity to pay off the loan in full and get the car back. Some creditors fail to provide this opportunity and thus are specifically excluded from legally claiming a deficiency, ergo no law suit could be sustained if you can show the violations. It is likely that insurance paid out on the default anyway, and since the default is usually paid by insurance the creditor has no real motivation to obey the law in regards to doing a proper repo. If your creditor did not obey the law you likely have a scenario where they are reporting incorrectly, such as indicating a balance or past due amount. The question comes down to how to approach it. You could dispute the balance using the argument that they aren't entitled to claim a deficiency but be aware of what reprecussions this could have. If they report back that the balance is correct you now have FCRA violations and others can tell you how to proceed from there. Be careful and be sure about your legal position. I am not a lawyer, so check with someone who is legally competent to be sure. You don't want to poke a sleeping tiger unless you're sure you can win.
