Under "statute of limitations" a debt such as yours is recoverable for 6 years – you are therefore still liable for the debt. It is likely that your debt has been passed to any number of debt collection agencies over the last 3 years and that your outstanding debt has increased considerably due to various "charges" being levied by said agencies.

If you have paid more than 2/3 of the outstanding amount, the creditor cannot seize your car (if you still have it), however, if you have paid less than 2/3 of the outstanding amount, the creditor can, and will seize the car. You will still be liable for any shortfall once the creditor has sold the car.

Some creditors will accept a reduced payment as a full and final offer but this is not guaranteed.

Best wishes.Auto finance is what I do for a living and I agree with the first poster to a point.

The statute of limitations varies by type of debt and which State you live in.

Regardless as new as this debt is your still liable for it and yes they can repossess the vehicle and if they do they will sell it at auction for far less then it's worth and come after you for the difference plus all fees for towing, storage, reconditioning, auction fees, interest and anything else they can think of this will amount to several thousand dollars and if you don't come to some arrangement to pay them they can sue you in court get a judgment and at that point attach bank accounts, garnish wages (if your State allows it) and file liens on any real property you may own like cars, boats, land and homes.

All of this will show on your credit for the next 7-years making it very hard to get approved for any other types of loans without massive down payment, paying huge fees and State maximum interest rates.

I have posted a link in the source box so you can look up your State and see what the true S.O.L. is.

And to answer your question no your car loan is not considered unrecoverable under the Consumer Credit Act.This post only covers England and Wales.

Firstly you might want to check it was a credit agreement, I am not sure all HP is enforced under CCA1974.

You had a default notice in 2008. Even if this was the last collection notice on the account the creditor would have 6 years from that date to collect on the debt or obtain judgement.

A year is a short time, it is very likely the debt will be sold on to another company within the next 12-24 months at which point you can offer a short settlement. There is plenty of advice on how to do that on here.

From 2014, if there has been no collection activity on the account I would consider the debt "statute barred" unless they can prove otherwise by getting a court judgement.

 

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