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Posted in Auto Loans
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Question By
imreadytomoveon

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No activity on two year old debt. How should I deal with this?
This was a secured debt. Vehicle was reposed and sold then a balance due was left. To my knowledge I have not been contacted by original debt holder. Note: the debt has not been sold.

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Validation Letter

As far as the balance due on the Repo'd car.  Finance companies don't repo cars with out following their legal obligation to notify and attempt to collect. That aside, Yes they do have a legal right to try and collect what was owed, But if, as you say, they never notified you that they were trying to collect and  you may have a shot at trying to validate the account.  

Write a "Validation Letter"  Google it for a template and more info.  Mail to one of the Credit Bureaus.  They will ask the lender to prove that they have the legal right to collect.  Many times they won't have all the paperwork they need so they will have to drop the account.  Do not contact the lender directly as that can reset the "date of last contact" which means that it can stay on your report for 7 more years.

Good luck

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