Legal Question in Credit and Debt Law in Indiana
car company is suing 12 years after reposessing the car
I just received a claim from a debt collector for a car company in which I purchased a car in 1995. The car continually broke down and I was unable to pay for the repairs and the weekly payment. After less than a year the car was repossessed due to lack of payment. I was told that the car company would sell the vehicle at the auction and I was responsible for the remaining balance from my original loan of $4700. Twelve years later I receive this letter stating that the original claim was for $2800 but now they want me to pay $5600 due to interest. I have a court date of later this month to contest this. Do I have any legal ground to stand on? Are there any statues of limitations here? This company has not shown up on my credit report and I thought I had taken care of this over 10 years ago. Can this company sue me now for double because they realize I am now in a better place financially than when I was a struggling single mother with a broken down car?
2 Answers from Attorneys
Re: car company is suing 12 years after reposessing the car
There is a six year limitation of actions on written contracts. So even if you did owe the money, the claim is unenforceable. I suggest you send them a letter advising that you do not owe the money for two reasons: you took care of the matter ten years ago, and the statute of limitations expired at least five years ago. Threaten them with civil action for libel if they report the debt to any credit agency, and tell them you are prepared to sue for damages under the Fair Debt Collection Practices Act. (Google that for more information.) Good luck.
Re: car company is suing 12 years after reposessing the car
I forgot that the rude barbarians already filed a complaint. So here is the code section for the limitation of action on such a case. Even if this is a small claims case, you should write a short motion to dismiss based on the following code section. Good luck.
IC 34-11-2-9
Promissory notes, bills of exchange, or written contracts for
payment of money
Sec. 9. An action upon promissory notes, bills of exchange, or other written contracts for the payment of money executed after August 31, 1982, must be commenced within six (6) years after the cause of action accrues. An action upon promissory notes, bills of exchange, and other written contracts for the payment of money executed on or after September 19, 1881, and before September 1, 1982, must be commenced within ten (10) years after the cause of action accrues. However, all contracts described in this section that have been executed before September 19, 1881, may be enforced within the time only as they have to run, before being barred under the law in effect at the time of their executions limiting the commencement of actions, and not afterward.
As added by P.L.1-1998, SEC.6.
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