Car totaled five years ago. Claim was never filed. What can happen?

[aadam101]

I have a friend who went through some troubled times.  His car was totaled five years ago through no fault of his own.  Someone else was driving.  He wasn't even there.  Because my friend was going through such a tough time, he never filed a claim for the car.  He still owed $15K on this vehicle through a certain Japanese car makers auto finance division. It shows up on his credit report as a Charge-Off.  How likely is it that the Japanese car maker auto finance division may sue him at this point?  Anything else he needs to consider?

[StarkRaven$]

Depends on if it is still with SOL and that is state specific. Has your friend pulled their paper reports to see how the CO is listed? You can check the state SOL under WhyChat.

 

 

[MarvBear]

If the accident and resulting charge off has been more than two years, then in my opinion you probably are not going to get sued for the deficiency.

[hegemony]

WTH does the fact it is a Japanese manufacturer have to do with anything??????

[centex]

Those consumer finance arms are in the United States.  Those consumer finance arms employ attorneys licensed to practice in the United States. 

 

Makes no sense not to have filed the claim unless this is a tacit acknowledgement of driving without the insurance that was likely required by the Agreement related TO the financing of the vehicle.  Good insurance carriers would have made their client whole and then gone after numbnuts behind the wheel.  But the time to file that claim has long since passed.

 

If it has truly been five years with no litigation commencing, then the SOL has likely expired, but they would need to check their local laws since limitations is a State by State thing...

[cv91915]

3 hours ago, hegemony said:

WTH does the fact it is a Japanese manufacturer have to do with anything??????

I read that as an attempt to differentiate the type of lender in case there were any nuances compared to, say, a bank or an abusive credit union.

 

 

Edited November 3, 2020 by cv91915

[hegemony]

2 hours ago, cv91915 said:

I read that as an attempt to differentiate the type of lender in case there were any nuances compared to, say, a bank or an abusive credit union.

 

 

that makes no sense. it is not as if the captive finance of Honda is regulated by the BOJ and MOF. The laws and regs are the largely same whether the lender if Honda finance, USAA, or Ford finance. Moreover, it makes no sense as it assume Toyota finance would behave the same as Honda finance just because of the perceived nationality of brand. The OP's post sounds like a scene from the film Gung-ho.

[cv91915]

3 hours ago, hegemony said:

that makes no sense. it is not as if the captive finance of Honda is regulated by the BOJ and MOF. The laws and regs are the largely same whether the lender if Honda finance, USAA, or Ford finance. Moreover, it makes no sense as it assume Toyota finance would behave the same as Honda finance just because of the perceived nationality of brand. The OP's post sounds like a scene from the film Gung-ho.

One might believe that an automaker's captive finance company is less likely to sue than another type of creditor who doesn't care which brand of vehicle a consumer buys in the future.  I'm not advancing that theory, that's just an example.  

 

Obviously some clarification from OP would be helpful.

[IndyPoolPlayer]

6 hours ago, centex said:

Makes no sense not to have filed the claim

Unless the owner knew the person driving should not have been driving (suspended license, no license, habitual traffic offender, etc) but allowed it anyway

[aadam101]

The Japanese part didn't matter.  I just didn't want the say the name but was trying to allude to who the lender was.   Honestly, I didn't realize there was a Honda Auto Finance.  

 

I am pretty sure that there are lenders who are more likely to sue than others.  That was all I was saying.

 

 

 

The credit report shows "Charge-off" and the last update was February 2016.  

 

Whychat shows this:

Quote

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct. other than Sales: 6

Contract: 6

Sales (UCC) Contract: 4

 

So 4 years applies to this situation?  

 

 

 

[StarkRaven$]

2 hours ago, aadam101 said:

The Japanese part didn't matter.  I just didn't want the say the name but was trying to allude to who the lender was.   Honestly, I didn't realize there was a Honda Auto Finance.  

 

I am pretty sure that there are lenders who are more likely to sue than others.  That was all I was saying.

 

 

 

The credit report shows "Charge-off" and the last update was February 2016.  

 

Whychat shows this:

 

So 4 years applies to this situation?  

 

 

 

I "think" a auto loan would fall under written contract. Someone more knowledgable may correct me though.

 

Is this info from a paper report you bought directly from one of the three major credit bureaus (EX, TU or EQ)? That is the report that shows all the vital information.

[aadam101]

4 hours ago, StarkRaven$ said:

\

 

Is this info from a paper report you bought directly from one of the three major credit bureaus (EX, TU or EQ)? That is the report that shows all the vital information.

Yes. 

 

 

What do you think a tow lot does with it? They eventually send it off to the scrap yard?

[StarkRaven$]

1 hour ago, aadam101 said:

Yes. 

 

 

What do you think a tow lot does with it? They eventually send it off to the scrap yard?

I don't know. Sorry. 

 

@Marv might know.

[centex]

19 hours ago, aadam101 said:

The credit report shows "Charge-off" and the last update was February 2016.  

 

Whychat shows this:

 

So 4 years applies to this situation?  

 

NEVER rely upon a website for legal information, whether procedure or limitations.  If someone is concerned about a matter of law, then they owe it to themselves to do their own due diligence to confirm the current state of the law for their jurisdiction...

Edited November 6, 2020 by centex

[centex]

15 hours ago, aadam101 said:

 

What do you think a tow lot does with it? They eventually send it off to the scrap yard?

A vehicle that was totaled was likely towed from the scene and sat in the wrecker lot for a period of time.  At some point, either the lien-holder takes possession (in which case it probably went to someplace like copart) or it was subject to auction as an abandoned vehicle (there is a specific process for titling such vehicles).  In some jurisdictions, storage lots run such auctions on a weekly basis while others may just run them monthly...it all depends on how many they have to get rid of to pay past-due storage fees. 

 

Other variables will include the reason FOR the declaration of a total loss.  After all, some are totaled simply because the airbags popped or the vehicle saw a little water.  I've seen exotics that were totaled because of wrinkles in the aluminum bodies even through the frame and most of the glass remained intact.  However, they still ran and could be brought back to life.  And then there are the ones that got rolled or have substantial damage to the frame or engine.  How those get titled after rebuilding, if they are rebuilt, depends entirely upon State law and whether branded titles are a thing in the jurisdiction...

[StarkRaven$]

On 11/5/2020 at 5:27 PM, StarkRaven$ said:

I "think" a auto loan would fall under written contract. Someone more knowledgable may correct me though.

 

Is this info from a paper report you bought directly from one of the three major credit bureaus (EX, TU or EQ)? That is the report that shows all the vital information.

Okay, I was a little timid in my response above but I did some research for YOU aadam101.

 

You signed a contract when you financed your vehicle so it falls under a Written Contract. It would not be a Open Ended Account because a Open Ended Account would have varying revolving balances like a credit card.

 

Open Date on a credit report means nothing in regards to the statute of limitations. 

 

Statute of Limitations or SOL begins the first time your financed vehicle went 30-days late. 

 

Centex is correct you need to order your paid credit reports directly from the credit bureaus so you can see everything listed under that delinquency. You will never get enough vital information from online reports.

 

 

[aadam101]

Thank you for all the help.  

 

 

 

This is how it is listed on my credit report.  The "Date of Last Payment" shows 11/2018.  I have definitely not made a payment since 2015.

 

 

 

Account Owner: Individual Account. High Credit: Type of Account : Installment Credit Limit: Term Duration: 71 Months Terms Frequency: Monthly (due every month) Date Opened: 08/17/2013 Balance: $ 19,114 Date Reported: 9/30/2020 Amount Past Due: $ 19,114 Date of Last Payment: 11/2018 Actual Payment Amount: Scheduled Payment Amount: Date of Last Activity: N/A Date Major Delinquency First Reported: 04/2019 Months Reviewed: 72 Creditor Classification: Activity Description: N/A Charge Off Amount: $ 21,670 Deferred Payment Start Date: Balloon Payment Amount: Balloon Payment Date: Date Closed: Type of Loan: Auto Date of First Delinquency: 06/2015 Comments: Charged off account, Fixed rate

[centex]

15 hours ago, aadam101 said:

Thank you for all the help. 

 

This is how it is listed on my credit report.  The "Date of Last Payment" shows 11/2018.  I have definitely not made a payment since 2015.

 

Account Owner: Individual Account. High Credit: Type of Account : Installment Credit Limit: Term Duration: 71 Months Terms Frequency: Monthly (due every month) Date Opened: 08/17/2013 Balance: $ 19,114 Date Reported: 9/30/2020 Amount Past Due: $ 19,114 Date of Last Payment: 11/2018 Actual Payment Amount: Scheduled Payment Amount: Date of Last Activity: N/A Date Major Delinquency First Reported: 04/2019 Months Reviewed: 72 Creditor Classification: Activity Description: N/A Charge Off Amount: $ 21,670 Deferred Payment Start Date: Balloon Payment Amount: Balloon Payment Date: Date Closed: Type of Loan: Auto Date of First Delinquency: 06/2015 Comments: Charged off account, Fixed rate

Is that from a paper report or is that from online reports? 

 

Yes, it matters. 

 

Remember ALSO that payment can include payment made by a third-party.  It is ALSO not the field that is controlling in most purposes, particularly with the claim that the date of delinquency is purportedly five and one-half years ago. 

[aadam101]

It's from an online report that I paid for.

[StarkRaven$]

2 hours ago, aadam101 said:

It's from an online report that I paid for.

You absolutely need to obtain directly from each credit bureau (EX, TU and EQ) paid copies of your credit reports. 

Edited December 6, 2020 by StarkRaven$

[aadam101]

Is the online report that I paid for different than the report that I would receive in the mail?

[StarkRaven$]

1 hour ago, aadam101 said:

Is the online report that I paid for different than the report that I would receive in the mail?

Not sure. I only meant to get them directly from each credit bureau.  

[MarvBear]

3 hours ago, aadam101 said:

Is the online report that I paid for different than the report that I would receive in the mail?

Yes.  

[hegemony]

5 hours ago, aadam101 said:

Is the online report that I paid for different than the report that I would receive in the mail?

Order paper reports from the big four

https://creditboards.com/forums/index.php?/topic/590506-ordering-paper-credit-reports-information-inside/&tab=comments#comment-5623246

 

IDS: https://www.innovis.com/personal/creditReport