Debt Collection Attorney Attempting To Collect Auto Loan

I live in Georgia. In March 2006, I bought a car and in March 2007 it had severe uncorrectable problems and a dealer would not take it in trade so I bought a new car and turned the old one back to the lender. In June 2008, debt attorneys garnished my checking account, without telling me, for the old car and said they would not release it until I began repaying the loan. I agreed to that but the payment was too high so I only made a couple of payments. I never heard from them again. Today, 12-13-11, I received a copy of a letter they sent to my bank requesting confirmation of financial affairs I have had with the bank. What is the statute of limitations in Georgia for auto loans? At what point did the statute of limitations originally begin? Did it start over when I was forced to start payments in order to have access to my checking account? I am planning to move to Northern Virginia in January or February 2012. Will this make my SOL time longer or shorter? If the statute of limitions has expired, could they legally garnish my checking account again? Thank you so much for any information you can give me.

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Jul 25, 2012
Debt Collection Attorney Attempting To Collect Auto Loan
by: Debtcollectionanswers

Glen, based on the information you provided me in your question, there seem to be several issues at play here. First, it sounds like your first car may have been a "lemon." If it was a new car, then it would have been covered by your state's Lemon Law; if it was used and the dealer misrepresented the condition of the car, then the dealer may have committed fraud and so you may have legal recourse against the dealer. Whether the car was new or used, you should have consulted with an attorney in your area. I don't know if it is too late to do that, but you may still want to talk with an attorney who helps people who unknowingly buy cars with serious defects.

Second, I am unclear if you financed the purchase of the first car with the dealer who sold it to you. If you did, then if the dealer resold the car, it would have applied the sales money to your loan balance and asked you to pay any shortfall. If you did not, the dealer would have had to sue you for the money and you should have been notified of the lawsuit. If you were not notified then you should contact an attorney in GA or schedule a free consultation with a consumer law attorney.

The statute of limitations is the period of time that creditors and collectors have to file a lawsuit to collect a past due debt. It begins on the first day that a payment is missed. According to my information, the statute of limitations on auto loan debt in GA is 12 years. If a lawsuit was filed during that time and there is now a judgment against you, the fact that the statute of limitations may have expired does not affect the right of whomever won the judgment to collect the money. Also, moving to another state has no impact on the statute of limitations.

Given the complicated nature of your problem, I recommend that you contact an attorney to try to sort it out. Based on what you have shared with me, I am not in a position to provide you any additional advice. Good luck.

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