Default Loan on Car purchased in 1992
Have a collection agency trying to negotiate a default loan of $7800 down to 1964.03 if we sign papers and commit to a payment each month. What is the statue of limitations on collections of this car loan made in 1992?.
1 Answer from Attorneys
Re: Default Loan on Car purchased in 1992
In response to your question, this is a general answer, since I am not able to ask about other facts. Regarding the stat. of lim., once a debtor acknowledges a debt, such as in this case where you agreed to a payoff plan, the stat. of lim. is tolled. I have not researched the law for this answer, but I believe the tolling means it starts over. I also, without researching the stat., submit the stat. of lim. for this type of contract would be 5 years.
You also should know this agrement may be recorded by the creditor with a neg. score for credit reporting. You can ask the creditor. You could slso ask creditor if they would agree to report the debt as fully satisfied at the end if you complete the agreement.
'Hope this helped. Tom Rosenblum