Legal Question in Credit and Debt Law in Texas
Charged Off Loan Debt
In 7-96 we sold a truck/trailer combination to a guy in Texas. It was financed in our name with a large Houston Credit Union and we later found out that the name on the loan was never changed. We left the state to move back to KS in 9-96. A week ago local business in our area that use Tele-check started refusing to take our checks. After a dozen phone calls or so it was discovered that the reason is a charged off loan from November 1999. Evidentally the guy we sold the rig to defaulted in our name. We have received nothing to notify us of this mess prior to having our checks refused. Is there anything we can do at this point short of paying the $7000+ charged off loan amount to get our checking account accepted again in our living area? Is there any recourse for us at all? And why, after all this time is it showing up now? Thank you for any advice you can offer at this time.
2 Answers from Attorneys
Re: Charged Off Loan Debt
Your problems may be greater than you anticipate. Selling the truck without getting the buyer to refinance it or getting the bank to release you from liability may have left you open to a collection action from the banker. The banker would probably like to collect the outstanding debt.
With regard to the credit problem, you may want to obtain your credit report and find out what has been reported. If it is factually in error, then you can request to have it corrected.
Re: Charged Off Loan Debt
You can get an explanation added to your credit report explaining how the debt came about.
When was the last payment due on the note, or when did your buyer default? That may be the starting point from which the statute of limitations runs on the debt.
If the debt is still within limitations, the credit union may still go after you on the charge-off.
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