Repossession of Vehicle-Cancelled Debt?

by Patty
(CA)

How do I know if my debt has been canceled from the collection agency? I have moved and they don't have my new address. I have not received a 1099 from anyone. How come they have not bothered me anymore? It was a loan through a credit union; the credit union reported as a loss, then collection agency started contacting me. The last time I was contacted was in 2009. The last payment on the loan was in Dec 2006/ The original loan was for approx. $32,000. They repossessed the car and auctioned it. They want me to pay for the difference. First it was $12,000, then they wanted to settle for $9,000.00. Then I didn't hear from them anymore. I live in California. How do I find out if it's been canceled? Every time the phone rings, I panic. Please help me.

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May 18, 2010
has your debt been cancelled?
by: Gerri

Patty,

Thanks for submitting your debt collection question on our Q&A page.

I understand that you are very worried about this debt, but please don't continue to drive yourself crazy about what may or may not happen here.

You didn't state whether you incurred the debt in California, but I am assuming you did. According to my sources, the statute of limitations for most consumer debts in California is four years. So it may be that the statute of limitations will expire at the end of this year. ( I am not an attorney, however, so I cannot give you legal advice.)

Unfortunately, I'm not aware of any central repository where you can find out the status of this debt. It may be in limbo right now and could stay that way for a while, or could be picked up by another debt collector at any time.

One thing you may want to do is review and monitor your credit reports and scores because sometimes collection accounts will show up at there first.

If you are called by a collection agency, you can simply ask them to put it in writing which is your right under federal law. You then also have the right to request written verification of the debt which will buy you some time to research your options. I would encourage you to at least read the first chapter of Debt Collection Answers online for free so you have an overview of your rights. In California, you also have a strong state law called the Rosenthal Act. We cover that in the California edition of our e-book.


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