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Auto Loan SOL


chaoticgrl81
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I had two cars repossessed. The first car was purchased from Toyota Motor Credit in California. The second car was purchased in Arizona from Chrysler Financial. After a loss of wages both cars were repo'd when I lived in Arizona. Does the SOL for the Toyota go off of California's SOL, where the contract was signed, or Arizona where it was repo'd? I know Chrysler would be under Arizona's SOL.

I'm new to all this, so would the SOL for the length of reporting time start on the first day a payment was late or missed? Or repo date? Both show "charge off/collection" on my reports.

Any info would help and be appreciated! :)

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By "deficiency" do you mean the first late payment or repo?

When the car is repossessed, it is sold off and the proceeds are applied against the outstanding balance of the loan. Any money left over after the sale must be returned to you. If the sale of the collateral (the car) is not sufficient to pay the loan balance, then a "deficiency balance" is created.

The concept of "deficiency balance" is a creation of the UCC and as such, it is generally held that the 4 year statute identified in Article 2 applies to deficiency balances.

The statute of limitations begins to "run" when the deficiency balance is created; that is to say, after the car is sold and it is determined that a deficiency exists.

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