Legal Question in Credit and Debt Law in Texas
Voluntary repossession
In 1992 or 1993 I had to let a lease vehicle go back because I could not afford the property taxes. They would not allow me to make payments on the taxes. Just this week a collector called trying to collect $4,500. They were told couldn't afford it. They said they would take $1,200. Still told couldn't afford it. Was told they would report it on credit report. Can they still keep trying to collect on a loan from 1992?
2 Answers from Attorneys
Re: Voluntary repossession
The time for the statute of limitations to kick in may run from the date the last payment was due on the lease. That date, plus four years (in Texas) is the cut-off for legal action. Other states may have a longer span of time for a lawsuit on a debt, and the lease agreement would spell out the laws of the state that would apply.
Remember, even though it may be too late for a lawsuit, the debt is still there.
Re: Voluntary repossession
I would agree with Mr. Bradie; however, I suggest that you dispute the debt for the amount anf because it is uncollectible if the Statute of Limitations has run. This can keep it off your credit report. Keep copies of everything you do with the collection agency and keep a log of phone calls - time, date, who you talked to, and employee #. If they won't identify themselves, terminate the phone call and call the Better Business Bureau. Also there is a credit commission in TX. Look it up for additional information.
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