Atlanta, GA asked in Consumer Law, Contracts, Banking and Collections for Alabama

Q: New question statute of limitations Alabama

7 years ago in Alabama I bought a car through the dealership and they sold the loan to AlabamaTelco Credit Union. AlabamaTelco is now Avadian Credit Union. I never stepped foot in the credit Union and was never a member. I lost my job and returned the car to Avadian. Now almost 6 years later Avadian is suing me. Are the rules for statute of limitations different if the loan was from the dealer then sold to a credit Union? Thanks.

1 Lawyer Answer
Nelson Craig Johnson
Nelson Craig Johnson
  • Birmingham, AL
  • Licensed in Alabama

A: General statute of limitations for debt collection actions on a contract is six (6) years. If it is a credit card or open line of credit then it is potentially three (3) years. It seems likely that your loan would be a six year statute. Now because your loan has been transferred between different entities it means they have to have done the transfers correctly or you may have the ability to get out of the debt. Additionally, if you surrendered the car to the credit union there would be questions about what the paperwork you signed said. It may be that they waived a right to bring claim against you for the excess balance or the failed to comply with repossession notice requirements.

The only way to know the answer to these questions is to consult with an attorney in Alabama who handles debt collection cases. Many times you are able to negotiate with these companies and work out a payment plan or pay a bulk payment for a fraction of the debt to resolve it.

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