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Question: Can a car finance company sue me for a car I don’t have? A loan company sued my husband and I for a car. We tried to return it to them in 2009 but it had broken down and they would not take it. After that we moved and were unable to afford to move the car. We informed the finance company where it was. They did not repossess it. Since then they have sued us. Can they do so?

Answer: They can sue and will win by default if you don’t defend the case. You need to comply with the instructions on the summons concerning defending the case.

The statute of limitations on a retail installment contract is four years, measured from default or last payment. It is possible that this debt is beyond the statute of limitations. If so, you have a defense, and may have a claim under the Fair Debt Collection Practices Act.

A creditor is not obligated to repossess collateral, at least if there is a good reason for not doing so, such as the fact that it is inoperable or in poor condition.

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