Legal Question in Credit and Debt Law in Indiana
What is the limitations of collecting money ?
A car was reposessed in 1994 and the bank sold it. Bank has been bought out by another bank and can not provide me with any documentaion to prove how much I owe them except a final amount. The last time I had sent any money to them was in 1998. I told them that I will not pay any more until they can give me a statement for the entire account from the date of purchase. Before it was taken the amount owed was $1000 more than before. What is the statue of limitaions for this collection, can they liquidate my pay or property?
1 Answer from Attorneys
Re: What is the limitations of collecting money ?
The statute of limitations is ten years. However, before a bank can recover on a car loan deficiency, they must prove that they properly notified you of your right of redemption before the sale and then provided you with an accounting of the sale results.
I represent lenders and you may be fortunate in that the bank may not be able to prove that you owe the money- When banks change hands records get lost and since they have the burden of proof, you may luck out if they lost your records.
Dealing with this situation requires skills beyond a layman since you have to object to the debt in writing and then challenge them to prove they have the proper documentation and compliance with federal and state law-seek counsel asap!
Good luck!
John E Bator
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