Car Reposession

I live in Gaston County in NC, Approx. 12 yrs. ago I purchased a car from a local auto dealer, the financing was through a major corp., at the time I was young and didn't know any better. They charged me 18% interest. At the time I was making good money and didn't care what the interest rate was as long as my payments were low enough. I lost my job and couldn't make the payments so I voluntarily gave back the car and now approx. 12 yrs. later they are still trying to collect. Is that legal in NC and is there anything I can do to get them to leave me alone?

crk8766 said:

I live in Gaston County in NC, Approx. 12 yrs. ago I purchased a car from a local auto dealer, the financing was through a major corp., at the time I was young and didn't know any better. They charged me 18% interest. At the time I was making good money and didn't care what the interest rate was as long as my payments were low enough. I lost my job and couldn't make the payments so I voluntarily gave back the car and now approx. 12 yrs. later they are still trying to collect. Is that legal in NC and is there anything I can do to get them to leave me alone?

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My response:

The Statute of Limitations on Written Contract Debts is 3 years from the date of last payment. Even if the Contract had a Promissory Note in it that you signed, there's a maximum of 5 years from the date of last payment.

If the creditor has not filed a lawsuit against you within those periods of time, they are out of luck. You can tell the creditor / collection agency to go "blow it out of your ass".

It's all over for them.

They are trying to collect from you in the hope that you don't know the law, and in the hope that you'll make a payment to them so that the Statute of Limitations clock starts all over again.

Don't fall for it.

IAAL

Re: Car Repossesions

Thank you for your reply, I have another question for you, if you would be so kind as to answer, they filed a judgement against me after they auctioned off the car, but I never paid them another dime after they took possesion, now every few years I get served with papers that headline "NOTICE OF RIGHT TO HAVE EXEMPTIONS DESIGNATED" from and attorneys office. Can they keep renewing this and keep trying to collect money from me? Your reply is greatly appreciated. Thank you

Re: Re: Car Repossesions

crk8766 said:

Thank you for your reply, I have another question for you, if you would be so kind as to answer, they filed a judgement against me after they auctioned off the car, but I never paid them another dime after they took possesion, now every few years I get served with papers that headline "NOTICE OF RIGHT TO HAVE EXEMPTIONS DESIGNATED" from and attorneys office. Can they keep renewing this and keep trying to collect money from me? Your reply is greatly appreciated. Thank you

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My response:

Well, then . . . it appears that they do, in fact, have a judgment against you - - that they did file a lawsuit against you, and they won. What's being sent to you now are papers to tell them that certain property, wages, or bank accounts are exempt, by law, from attachment.

You are about to have a garnishment placed on your wages and / or you may be being Summoned to Court for a "Debtor's Hearing".

I would strongly urge you to have those papers reviewed by an attorney - - because it is apparent that you have no clue as to what's happened, or what's going to happen, to you.

You see, a judgment is good for 5 years from the date of the judgment, and renewable for another 5 years - - for a total of 10 years. And, that judgment accrues interest at the rate of 10% per year. So, the total amount just keeps going up and up. For them, it's better than having money in the bank because what bank, that you know of, gives 10% interest ?

Good luck to you.

IAAL