[blissbear]

My question involves an auto loan or repossession in the States of: Illinois and California.

We purchased a vehicle from a used car dealership in Illinois in 1996. The loan was deferred for 45 days and no payment was due until these has had passed. We moved to California within 45 day period. The dealership initiated a repossession of the vehicle after we contracted them and notified them of our change of address before the initial payment was due and that we still intended to make all payments on the loan.

During a night time repossession of the vehicle without notice to us, the vehicle was damaged beyond the value of the vehicle.

When we contacted the dealership they told us they took our moving as attempting to flee the state without intent to make payments. They told us we could reclaim the vehicle from the impound yard, but upon inspection of the vehicle we declined the offer and notified the dealership that we no longer wanted the vehicle due to the damage incurred during repossession.

We received no further contact from the dealership or or lender until this last week, when we received contact from Vision Financial Corp in Purchase, NY.

They insist we owe an outstanding balance of over double the initial loan. They also say that an initial payment was made on the account. We can only assume it was made by the dealership to the lender due to the dealers gross incompetence. The dealership is now not surprisingly out of business.

I intend to send a letter disputing the validity of this debt, what information should I include? What other actions should I take to insure my rights are retained in this matter? How long can a debt sit like this before it is no longer actionable through legal course?

Thanks in advance for any general information you can provide relevant to the circumstances of this ludicrous situation.

Bliss

[josh208]

I wouldn't even bother arguing the validity of the original debt. The fact is they are beyond statute of limitations whether based on CA law, or IL.

1. Do NOT speak with them over the phone except to state that you will only communicate with them in writing.
2. Do NOT pay 1 penny (will reset statute of limitations)
3. Do NOT say / write anything other than the fact that they have no remedy for the alleged debt as it is beyond the statute of limitations.
4. If it reflects on your credit report, send notices to the reporting agencies stating the same (and if the inception date is inaccurate be sure to point out that this creditor has illegally re-dated the alleged obligation).

Send them a response stating only that the alleged debt can not be enforced due to statute of limitations therefor you will not entertain any negotiations nor threats nor harassment on their part.

Send it once, then ignore them if they continue calling note that date/time of every call, and if possible record. Let them know that you are doing so and if they persist that you will seek legal counsel as they are harassing you.


Illinois Statutes of Limitation

Breach of contract for sale under the UCC: 4 years.

Open account or unwritten contract: 5 years. NOTE: Except, as provided in 810 ILCS 5/2- 725 (UCC), actions based on a written contract must be filed within 10 years, but if a payment or new written promise to pay is in made during the 10 year period, then the action may be commenced within 10 years after the date of the payment or promise to pay.

Domestic judgments: 20 years, but can be renewed during that 20-year period.

Foreign judgments are the same time as allowed by the laws of the foreign jurisdiction.

Tolling: A person's absence from the state or during the time that an action is stayed by injunction, court order or by statutory prohibition tolls the time limit.

Non Sufficient Funds (NSF or Payment of Negotiable Instruments) checks: 3 years of the dishonor of the draft or 10 years after the date of the draft, whichever expired first: 810 ILCS 5/3-118


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California Statutes of Limitation

Written agreements: 4 years, calculated from the date of breach.

Oral agreements: 2 years.

The statute of limitation is stopped only if the debtor makes a payment on the account after the expiration of the applicable limitations period.

[deantanski]

There is a statue of limitations that any debt owed can only be reported on your credit reports for seven years. They can indefinitely try to collect the money. The big thing is selling your debt to collections agencies. No matter how many times it is sold or how many companies have their hand on it; it can only be reported once on your credit reports. Here is another trick that the collection companies will due, they will change the date of "First Activity" on you credit reports so the debt appears legit on your reports. There is a law that prohibits that from happening but it does happen all the time. If found guilty there are very hefty fines the company would have to pay. It is very important to get a copy of all three every year. If it is past the seven years that you owed the original debt collector then you can send a Cease and Desist letter to all other collection agencies. By Law they must stop the collection process. Here is the thing that will work in your favor; the debt is no longer a concern of the original debt collector and will not try to collect because they sold your debt for money to a collection agency. If done correctly the debt will be wiped clean off your credit reports and all attemps of collecting will cease. It is all a big game and you must learn how to play it. try downloading a book called "credit secrets" it may be a challenge to find it.

Here is a templet to use. copy and past into ms word. save it for LIFE.

Cease and Desist Letter


Your name and address Here.

Client reference # Account #



Attention: Name of Contact

Company’s name and address here


RE:

Dear Mr or Mrs

You are hereby notified under provisions of Public Laws 95-109 and 99361, also known as the Fair Credit Collection Practices Act, that your services are no longer desired or needed.

1) You and all employees of your organization must CEASE AND DESIST all attempts to collect the above debt. Failure to comply with this law will result in my immediately filing a complaint with the Federal Trade Commission and this state’s Attorney General’s office. I will pursue all criminal and civil claims against you and your company.
2) Let this letter also serve as a warning to you and your company that I may and will utilize telephone recording devices in order to document any telephone conversations that we may have in the future.
3) Futhermore, if any negative information is placed or has been placed on my credit bureau reports by your agency after receipt of this notice, this will cause me to file suite against you and your company, both personally and corporately, to seek any and all legal remedies available to me by law. Since it is my policy neither to recognize nor deal with collection agencies, I intend to settle this account with the original creditor.


Sincerely,

You’re Name Here
Remember to Sign your name.