How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask xavierjd Your Own Question
xavierjd
xavierjd,
Category: Consumer Protection Law
Satisfied Customers: 3400
14261217
Type Your Consumer Protection Law Question Here...
xavierjd is online now
A new question is answered every 9 seconds

Can a collection agency place a title lien on my house for

This answer was rated:

Can a collection agency place a title lien on my house for an unpaid auto loan that was opened in 1996?
Thanks for using JustAnswer.com It will be my pleasure to assist you today.

Were you sued for the unpaid loan?

Was there a judgment obtained in court by the auto loan lender?

Thanks
Customer: replied 4 years ago.

No is the answer to both questions.

Hi Mike,

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.

My goal is to provide you with excellent service – if you feel you have gotten anything less, please reply back. I am happy to address follow-up questions. If you are satisfied with my answer, please rate it as "excellent" or in another positive manner. That is the only way that I can get credit for answering the question.

Thank you for your business!

XavierJD








Customer: replied 4 years ago.

You didn't answer my original question.. Can a collection agency place a lien on my house for an unpaid auto loan that was opened in 1996..

Hi Mike,

If you were never sued and the lender never obtained a judgment against you in court, then the answer is NO.

I provided the information in the prior answer to give you all of the information regarding the statute if limitations for suing on a contract theory.

I hope you find this information useful.

My goal is to provide you with excellent service – if you feel you have gotten anything less, please reply back. I am happy to address follow-up questions. If you are satisfied with my answer, please rate it as "excellent" or in another positive manner. That is the only way that I can get credit for answering the question.

Thank you for your business!

XavierJD

xavierjd and 3 other Consumer Protection Law Specialists are ready to help you
Hi Mike,

Do you have any other follow up questions?

My goal is to provide you with excellent service – if you feel you have gotten anything less, please reply back. I am happy to address follow-up questions. If you are satisfied with my answer, please rate it as "excellent" or in another positive manner. That is the only way that I can get credit for answering the question.

Thank you for your business!

XavierJD