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When was the last payment made to the car loan company?
Given the information you provided, it is too late for this collection agency to legally collect anything from you, as the Statute of Limitations (SOL) is 6 years from the date of default, which is 30 days after the last payment, and has nothing to do with the charge-off date.
You can't believe anything a collection agency tells you, as they are notorious for lying. The truth is that they cannot legally collect anything from you, unless you volunteer to pay them something, because if you do, the SOL starts to run all over again. This is what they are hoping for, and they will tell you anything to get you to make just one little payment.
I think this is what you wanted to know. If not, please let me know.Thank you!
Although they can sue you, it is unlikely that they will, because once the judge finds out how old this debt is, the lawsuit would have to be dismissed. This means the collection agency will have wasted their money, as the court filing fee is a few hundred dollars, and they also have to pay an attorney.
No further damage can be done to your credit because of this debt. If the court proceeding shows up on your credit report, you can notify the credit bureau after the case is dismissed, and they will remove the court case from your credit report.