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Posted in Auto Loans
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jschraffenberger01

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Car loan reclaimed from collection agency
Original creditor has sent me a notice stating they have reclaimed my debt from a collection agency asking me to set up a new payment plan. Is this legal and should I fear garnishment if unanswered. The original debt is a car loan about eight years old

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First thing that you need to do is to look up the "Statute of Limitations" in your state to be sued for that type of debt. In most states it would be long expired leaving you legally off the hook for the debt. You do not want to enter into payment arrangements as that can reset the "statute of limitations". Most likely that is what they are trying to trick you into doing. DO NOT communicate with them. If the "statute of limitations" has expired on the debt you can send them a "cease and desist letter" or look for a consumer law attorney for further advice.

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