Legal Question in Credit and Debt Law in California

Re: charge off

You need to do a few things. First, assert the statute of limitations as a defense to the collection efforts. Send them (everyone attempting to collect from you) a certified letter, return receipt indicating that you do not owe them anything as more than four years have passed since the default on the underlying vehicle loan (you can include the fact that you had paid for, and thought you had GAP coverage, but turns out the dealership failed to place the insurance), and that they must stop contacting you and attempting to collect the debt. This might not stop them, so when and if they file suit, you should do two things. First, you need to make sure that four years has actually passed from the time you stopped paying on the car loan. Then in response to the lawsuit you are going to assert the statute of limitations as a defense, and ask for your attorneys fees (because you should retain an attorney to defend you). Additionally, you need to cross-complain against Worthington Ford for breach of their agreement with you to place GAP coverage. You cannot simply ignore this because the Statute of Limitations appears to have run - if you do, they'll still get a default judgment against you and pursue collections. You might consider suing Worthington Ford anyway for their breach. Good luck with getting this resolved.

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Re: charge off

The statute of limitations for suing you is four years, so unless you volunteer to pay, or you don't respond to the lawsuit, you're off the hook. Consult a lawyer if you receive a lawsuit, the statute of limitations needs to be raised as a defense.