DO NOT ADMIT THAT YOU OWE ANYTHING if a collection agency contacts you. Also, you can demand that the collection agency stop calling you. You have to put that request in writing AND state that you do NOT owe any debt.
An auto loan is a legally binding contract
. It identifies the parties, as well as the terms and conditions of the auto loan. It also identifies the date of the origination of the loan, as well as the date that the first payment is due.
The clock starts ticking on an auto loan on the date of the last activity on the contract, such as a payment. To find the date your last payment was received or the discharge date of your auto loan, check your consumer credit report
. Written contracts remain on your consumer credit report for up to seven years.
In North Carolina, the statute of limitations
on written contracts is three years, which is the shortest in the country.
So, the auto lender CANNOT sue you if it has been more than 3 years since the date of your last payment.
According to North Carolina debt collection laws, a creditor must bring legal proceedings against a debtor before the statute of limitations expires or forfeit the right. In other words, if a creditor fails to sue a debtor for the repayment of an auto
loan before the statute of limitations expires, it forfeits it's right to do so in the future.
If a creditor did sue in court for an unpaid auto loan and won a judgment for the remaining money owed on the contract, the judgment will remain on your consumer credit report for up to 10 years. The clock starts ticking from the issue date of the judgment. To win a judgment, the creditor must provide the original signed auto loan contract and any canceled checks to prove breach of contract
I hope you find this information useful.
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