Auto Loans total loss payout. finance company hounds

[warrior64]

My question is in 2009 my vehicle was involved in an accident by my ex-fiance and the insurance paid the total loss of the vehicle which they said was worth less than the loan, the finace excepted the total loss payout, and then came after me two years later for the remaining balance on the loan deducting the total loss payout. 1. what are the statue of limitations on this case in california, 2. being that the finance excepted the total loss payout do i still have to pay the balance, 3. what was the sense for full coverage if my insurance compay paid less then what the car was worth, do i have any recourse not to pay the balance?

 

[army judge]

My question is in 2009 my vehicle was involved in an accident by my ex-fiance and the insurance paid the total loss of the vehicle which they said was worth less than the loan, the finace excepted the total loss payout, and then came after me two years later for the remaining balance on the loan deducting the total loss payout. 1. what are the statue of limitations on this case in california, 2. being that the finance excepted the total loss payout do i still have to pay the balance, 3. what was the sense for full coverage if my insurance compay paid less then what the car was worth, do i have any recourse not to pay the balance?

The SOL may have tolled on her ability to sue you!


http://www.bcsalliance.com/debt1_california.html

Read on:

Statute of limitations

According to California Code of Civil Procedure § 337, the statute of limitations for debt related to a written contract is four years, and an oral contract is two years from the date of breach. See the Bills.com resource Collection Laws and the Statute of Limitations for the rules in other states.

If you determine that your state's SOL for the collection of debts has expired, the likelihood of the creditor attempting to sue you to enforce the debt is much less. The fact that the creditor filed a suit indicates either the creditor believes the SOL has not expired, or the creditor believes you -- the defendant -- will not raise the statute of limitations defense.

The passing of the SOL does not mean that a creditor cannot sue you. If a lawsuit is filed, the defendant will have an absolute defense against the lawsuit if the defendant raises the SOL defense in a timely manner. The defendant must raise this defense -- a court will not do it for the defendant. If the defendant responds to the suit stating the SOL has expired, the judge should dismiss the case.

In most states, the SOL begins running from the date of the breech. In other words, the SOL starts running 30 days after the last payment. This means that if you paid just a few dollars to a collector a couple of years ago, the running SOL for that debt could have been reset.

http://www.bills.com/california-statute-of-limitations/

 

[mightymoose]

It sounds like the statute of limitations is not expired. The clock starts from the date of your last payment, which in this case would be the date the insurance payout was made. They then have 4 years to initiate a lawsuit if you fail to pay.
Like any other debt, you may be able to negotiate a lesser amount with them, but it seems you are still on the hook for the loan.