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  1. #1
    Join Date
    Oct 2013
    Location
    California Redwoods
    Posts
    10

    Default How Long Does a Lender Have to Sue Over the Unpaid Balance of a Car Loan

    My question involves an auto loan or repossession in the State of: California

    I had a car repo'd which was sold at auction and I ended up owing the car finance company about 5,000. I made payments for a while then stopped, with the balance of $2500. I was recently contacted by a collection agency for the outstanding balance.

    It is my understanding the the time limit for suing someone over a collection account is 4 years in CA.

    My question is: does this apply to car loans? or do they have different criteria / time limits?

    It has been over 4 years since I last paid on this loan.

    Thanks for any advice.

  2. #2

    Default Re: How Long Does a Lender Have to Sue Over the Unpaid Balance of a Car Loan

    There are two issues. First did you enter into a written contract to pay the $5,000. 2nd when was the last time you paid them. The statute would start from the last payment you made. If that was more that 4 years ago as long as you don't reaffirm the debt you may be fine. No matter what don't send them any money because that is reaffirming that you are accepting that you owe the money.

  3. #3
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: How Long Does a Lender Have to Sue Over the Unpaid Balance of a Car Loan

    That is not correct.

    As the vehicle was repossessed and sold, if the seller complied with the law in conducting the sale and providing notice of the sale and deficiency, the cause of action accrued at the time of the sale of the vehicle. A deficiency claim is governed by a five year statute of limitations. See Barnett Recovery Corp. v. Fornasari, 655 So.2d 1274 (Fla. 2d DCA 1995).

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