Maricopa County Superior Court reaffirms Four Year Statute of Limitations in Deficiency Claim
In the Case of Autovest, LLC v. Randall, CV2014-013134, Maricopa County Judge Karen A. Mullins reaffirmed that the statute of limitations to collect on a deficiency balance for an auto loan after repossession is only four years. If the car was purchased using a Retail Installment Sales Contract, and the dealer arranged the financing, then the statute of limitations runs four years after the car is repossessed.
Complete Defense to Colleciton Action
In Arizona, if you are sued by a lender for a deficiency balance after repossession, and the lender has waited four years or more to file suit, they you should have a complete defense to the collection action. Meaning, you should be able to get the case dismissed and not owe anything.
My office recently filed suit under the federal Fair Debt Collection Practice Act or FDCPA against Commercial Recovery Systems, Inc. (“CRS”) for calling and harassing an Arizona consumer over a debt which was beyond the statute of limitations. The complaint alleges that the debt is stale and beyond the Arizona statute of limitation to collect by legal action, yet CRS telephoned and threatened this Arizona debtor with legal action, including threats of wage garnishment, freezing of her bank account, taking her income tax refund, and placing a lien on her current vehicle if she did not pay.
The FDCPA protects Arizona consumers from these types of threatening calls from collection agencies. In this case CRS’s alleged actions are even more egregious since the collector’s manager got on the phone and confirmed that these actions would in fact be taken unless the account was paid.
If you are an Arizona consumer who is receiving harassing or threatening collection calls from Commercial Recovery Systems, Inc. or other collection agency, please call Floyd W. Bybee at the BYBEE LAW CENTER, PLC (480) 756-8822 for a free phone consultation to see what your rights are.
Greater Glendale Finance, LLC, previously known as Walker Motors Financing, LLC, continues to file lawsuits against Arizona consumers well after the statute of limitations has run. Greater Glendale Financing is the finance arm of the J.D. Byrider dealership located in Glendale, Arizona. Over the years, J.D. Byrider has sold thousands of vehicles to Arizona consumers and financed those purchases through its financing arm which has gone by the names of CNAC, Walker Motors Financing, LLC and now Greater Glendale Finance, LLC.
Like its franchise twin Bartolini Finance in Mesa, Arizona, and Bartolini’s sister company Grace Finance in Chandler, Arizona, Greater Glendale Finance is the financial arm for the JD Byrider franchise in Glendale. When a car is sold by JD Byrider, the sales/finance contract is assigned to Greater Glendale Finance. If payments are missed, and the car gets repossessed, Greater Glendale has four years under Arizona law to bring a lawsuit to collect any deficiency it claims to be owed.
What Greater Glendale is doing, like Bartolini Finance has been known to do, is waiting until nearly six years after the repossession before bringing suit. Greater Glendale then tries to argue that the contract is covered by the six year statute of limitations for a written contract, when the law in Arizona is clear that the statute of limitations on a vehicle finance contract is four years.
If you have been recently sued by Greater Glendale Finance, LLC, I may be able to help you. Please call Floyd W. Bybee at the BYBEE LAW CENTER, PLC (480) 756-8822 for a free phone consultation.