CHARLOTTE — A South Charlotte man used his car as collateral for a personal loan. Years ago, he was late on a loan payment, but no one contacted him about it, so he thought everything would be fine. Stolen without notice.
Embarrassed by what happened, “John” asked Channel 9 not to use his real name, but still hoped others would learn from his horror.
After paying off his 2007 Toyota Camry, John says he eventually took out a personal loan and used the car as collateral.
“My son was born prematurely and was in the hospital for three months, so[payment]was a little late,” he explained.
John says it’s been a while, but the personal loan lender hasn’t contacted him about it.
“I thought I was clear,” he said.
That was until one recent morning. “One night I went to bed and woke up and it was gone,” he said.
He thought someone had stolen it, but a collection agency eventually called to say his car had been stolen.
John says losing his car is bad enough, but to make matters worse, his apartment keys and work ID were in the car.
Action 9’s Jason Stoogenke emailed the company on his behalf.
For privacy reasons, I will not discuss this subject. However, John says a debt collector contacted him within 24 hours of him.
“I don’t know when you did it, but it was really quick and they said, ‘We’re going to return your car and release the title,'” he told Stoogenke.
Here’s what you need to know in both Carolinas.
– Most consumer debt such as credit cards and personal loans have a 3 year statute of limitations.
– Three years is up to interpretation, but a good rule of thumb is that the clock starts on the date of the last activity (usually the last payment).
– Collection agencies can still try to collect after 3 years, but if you are sued, it will be too late.
– However, in cases like this involving collateral, it may be possible to receive collateral without going to court. So read the contract carefully.
[ MORE ACTION 9: Drivers told they may lose licenses for traffic charges they thought were dismissed ]
This wasn’t a car loan, so it wasn’t technically a car foreclosure case, but your rights in these situations are:
– The lender reserves the right to remand your vehicle if you fail to pay or breach the contract in any way.
– Lenders are not required to notify you before remanding your vehicle.
– You are even allowed to seize vehicles on your premises.
– If you have personal items in the car, it can be difficult to retrieve them after the car has been recovered.
(Video: Wells Fargo pays $3.7 billion in consumer loan breaches)
This browser does not support the video element.
