MN Statute of Limitations on Collecting Auto Loan

[Dantanamn]

I live in Minnesota and had a repossession a number of years ago. The last activity at all on the account was August 15, 2009. From my understanding the statute of limitations in Minnesota is 7 years.

My question is this. A few months back someone dropped off some paperwork with the intent to file a judgement against me, it was not anything that I signed. It was just left with my girlfriend at the time. I had called them and told them to see what was going on and explained that I do not have the $12,000 that they were looking for, so they asked what I can pay and I said I would get back with them. I contacted them a few weeks later and told them what I can do.

About a month and a half later, I receive a letter with another intent to file a judgement. I call them again and tell them what I can pay and then just tonight, I received an e-mail where they are asking for a financial statement from me as proof that what i say I can pay is accurate.

My question is, once the 15th rolls around does that mean that the statute of limitations has passed and they no longer have a case against me?

 

[FlyingRon]

Statute of Limitations goes out the window if you agree to a new payment plan. If you want to argue SOL you need to stop offering to settle with them.

I don't know where you get seven years from. Contracts have a six year SOL in your state.

Anyhow, are you sure they don't already have a judgement on you that they are not trying to perfect? Exactly what does this document that was served on you (which by the way just giving to an another adult residing at that location is fine)?

 

[adjusterjack]

First you need to understand that a Statute of Limitations mandates a time limit for filing a lawsuit but, as a legal practice, it doesn't prevent the lawsuit from being filed it gives a defendant an affirmative defense to raise if the lawsuit is filed late.

Next, I don't know where you got the 7 year thing. According to MN statutes it's 6 years:

541.05 VARIOUS CASES, SIX YEARS.
§ Subdivision 1.Six-year limitation. Except where the Uniform Commercial Code otherwise prescribes, the following actions shall be commenced within six years:
(1) upon a contract or other obligation, express or implied, as to which no other limitation is expressly prescribed;

https://www.revisor.mn.gov/statutes/?id=541.05

OK, I know you see the Uniform Commercial Code reference so I checked Part 6 Subpart 1. Default and Enforcement of Security Interest (secured car loan is that) and find no mention of a specific SOL for the deficiency so the 6 years limit applies.

https://www.revisor.mn.gov/statutes/?id=336

A statute of limitations runs from the date of default which might or might not be the "last activity" that you refer to. Generally the default date is when the first unpaid payment becomes past due. If the repo occurred in August 2009 then the default of the loan occurred before that and it's more than 6 years from the default.

Any lawsuit brought going forward would be dismissed once the SOL is raised as a defense.

Next time you are contacted by the collection agency you can tell them the SOL has run out so they are SOL.

However, FlyingRon makes a good point as to whether or not you have already been sued and have a judgment against you. Better check your credit reports www.annualcreditreport.com and court records.

 

[adjusterjack]

Statute of Limitations goes out the window if you agree to a new payment plan. If you want to argue SOL you need to stop offering to settle with them.

Good point.

541.17 NEW PROMISE MUST BE IN WRITING.
No acknowledgment or promise shall be evidence of a new or continuing contract sufficient to take the case out of the operation of this chapter unless the same is contained in some writing signed by the party to be charged thereby; but this section shall not alter the effect of a payment of principal or interest.