Legal Question in Credit and Debt Law in Florida

auto repo

I had a car reposessed in 1986. I received a call yesterday from a collection agency stating that I owed them $6,000 because they had been charging me 12% all these years on the amount that was still owed. They said they would settle for $1,400. I don't have the money and wonder if they can legally collect it. Also, this does not show on my credit report, I know because I just ordered and received one in the mail. Can they affect my credit rating with this? What should I do?


Asked on 1/12/03, 9:13 pm

2 Answers from Attorneys
Gregory J. Roth Gregory J. Roth, PLLC

Re: auto repo

The amount that the creditor seeks to collect is most likely a "deficiency"- i.e the difference between the amount you owe on the car loan and the amount the car was sold for after it was repossessed. Michigan does allow creditors to collect on such deficiencies. The delinquency might also appear on your credit report, and the creditor may attempt to take you to court to obtain a judgment. It appears that the creditor may be barred from legal action in this case due to a statute of limitations; however, I would have to see relevant documentation to advise you further. If you need assistance, please contact me at www.lawgreg.com.

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Answered on 1/12/03, 10:00 pm
Alexander M. Rosenfeld Rosenfeld & Stein, P.A.

Re: auto repo

It seems that the statute of limitations has barred further enforcements action on behalf of the creditor and its agents. Refuse to pay, do not acknowledge the debt, direct the collector to cease contact with you. If the collector persists, see counsel for a full explanation of your rights under the FDCPA and the FCRA.

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Answered on 1/14/03, 9:59 pm


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