quick question on collections of a reprocessed automobile

[bkbound63]

I am posting this for a friend of mine, he recved papers from an attorney. A bank in NC repocessed this car 20 years ago. He had gotten a DUI and could not keep the ins up, so they come and got the car. He had owed 2700.00 on this car. Today they say he owes 10000.00. I thought after so many years they could not collect.
any info is appreciated,
thanks

[SinkingFast]

What I'm finding on the Net is 4 years on UCC Sales Contracts, 10 years on Judgements.

http://www.acollectionagency.com/sta...thcarolina.php

Did friend maybe have some Judgement brought against him at the time the car was Repo'd?? Then his Creditor or a Collections Agency followed up with another Judgement before the previous one lapsed allowing for the extension of time??!!

It might be useful to spend some time digging around at the Court House to see what's been filed against your friend.

[lrprn]

I am posting this for a friend of mine, he recved papers from an attorney. A bank in NC repocessed this car 20 years ago. He had gotten a DUI and could not keep the ins up, so they come and got the car. He had owed 2700.00 on this car. Today they say he owes 10000.00. I thought after so many years they could not collect.
any info is appreciated,
thanks

"In North Carolina, the statute of limitations for collection on different types of debts are:
Oral agreements - 3 years
Written contracts - 3 years
Promissory notes - 5 years
Open accounts - 3 years
Sale of goods - 4 years

When there's been a judgment, the statute of limitations in NC is 10 years and the maximum interest rate that can be charged is 10%.

Exemption for out-of-state collectors: Contact state authorities. Unofficially, licensing authorities may allow out-of-state agencies to bypass requirements if they do not solicit in state and/or work for instate clients."

[from http://www.cardreport.com/laws/statu...mitations.html and http://www.ihatedebt.com/DealingWith...imitations.php ]

It's likely your friend has been contacted by a collections agency who bought up a bunch of junk debt and is hoping he'll just pay up without investigating after receiving a legal-looking notice. After 20 years, since his original car repossession was in North Carolina (and assuming he lived in NC at the time), then he shouldn't be liable for the debt unless the creditor or a collections agency filed another judgment to extend the time (he was supposed to be notified if that was done). He can go to the courthouse to request a copy of any judgments against him.

As unfair as it seems, a creditor or collection agency can theoretically continue with letters and telephone calls forever (although third-party collectors are subject to the "cease and desist" provision of the Fair Debt Collection Practices Act - http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm#808 .)

Suggest to your friend that along with a trip to the courthouse he should contact North Carolina's Attorney General Roy Cooper's office and file a complaint - http://www.ncdoj.com/consumerprotect...complaints.jsp . His staff could be most interested in this attempt at debt collection in their state long after the original SOL is up, especially if no judgments have extended the time allowed to collect.

Please tell your friend good luck and keep us posted on what happens.

[bkbound63]

Ok I have given my friend all of this info, as I was trying to find out what to do, he called this collection agency to question the amt owed, the woman that he spoke to, wanted him to agree to a payment plan, he told her that he was not going to agree with an amount, because when they took the truck, all that the bank resold the car for 2700.00 less than what he pd for the truck. So if he had to pay 10000.00 that someone had better be coming up with him a vehicle before he pd that. So I was happy that he did not agree to pay them anything, because i had gave him all of the useful info that i had recved on this board. He had called the FTC yesterday and they took all of his info, and than went on to advise him to go to the website and fill out a complaint, in which he had done, and i will update as soon as he hears anything.