 Repo
doesn't stop collection calls
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 Dear
Dr. Don,
I was wondering how long I should keep past statements from utilities
and credit card companies. Also, please tell what I can do about
an auto loan that went through voluntary repossession in 2002. The
auto company went into bankruptcy shortly after the voluntary repossession,
and the last activity was at that time as well, over four years
ago. I really do not have the desire to pay this auto loan. If I
could afford the payments, then it never would have gone into voluntary
repossession. However, the collection agency keeps calling and harassing
me and my wife about the loan.
-- Jeff Jettison
 Dear
Jeff,
It's easy enough to get the bill collectors to
stop calling. Tell them to stop calling. Granted, you have to do
it in writing, but the phone calls will stop. The Bankrate feature,
"Yikes!
Collectors are calling day and night," explains your rights
under the Fair Debt Collections Act, as does the FTC publication,
Fair
Debt Collection.
While a voluntary repossession is marginally better
than an involuntary repossession on your credit report, you still
owe any deficiency on the car loan. Laws vary by state, but in general
the creditor sells the car and you are responsible for the balance,
including repo costs, auction costs, etc. The negative information
about the repossession stays on your credit report for seven years.
Often, a collection agency makes a big push
just before your obligation to repay expires due to a statute of
limitations on the contract. The Bankrate article, "State
statutes of limitations for old debts," explains the statute
of limitations for delinquent debt. It's important not to reconfirm
the debt, because that could start the clock over on the statute
of limitations. When in doubt, talk to your attorney.
As for holding on to old bills, check out what the utility companies
and credit card firms offer in the form of online statements, and
that may be sufficient. In doing my taxes for 2005 I was able to
call up all my 2005 cell phone bills online, and it made chronicling
those business expenses a snap. The earlier Dr. Don column, "Home
records retention," provides a perspective on records retention,
but the GSA Publication, Keeping
Family/Household Records does an even better job in helping
you to organize your household paperwork.
To ask a question of Dr. Don, go to the "Ask
the Experts" page, and select one of these topics: "financing
a home," "saving & investing" or "money."
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