What is the statute of limitations on defaulted car loan in Colorado?

Answer 1

When a car, truck, or other vehicle is financed, the finance company or bank retains significant rights in the vehicle, until the last and final payment is made on the note. The rights of both the "creditor" and "debtor" in this situation are established in the signed finance agreement and by state law. In Colorado, when a consumer debtor defaults upon an automobile finance agreement, the creditor bank must first send one notice of "right to cure" per 12-month period, before exercising its right to repossess the vehicle. The debtor must be in default for at least ten days, prior to the issuance of such notice. Thereafter, the debtor has 20 days in which to "cure" the default. If the consumer debtor does not cure the default on the note, the finance company or bank may then repossess the collateral. Consumer debtor rights continue, even after the repossession has occurred. A dealership or finance company that retains a lien on the secured collateral may exercise either of two options, upon repossession. Firstly, the lien holder may send the consumer debtor a notice of intent to retain the collateral in full satisfaction of the debt. If this option is exercised, the creditor bank releases the consumer debtor from any further obligation with respect to the repossessed vehicle and agrees not to pursue a "deficiency judgment" against the debtor. On the other hand, if the debtor objects to this course of action, or the dealer/bank elects, instead, to not release the consumer debtor from any further obligation on the finance agreement, the dealer/bank must comply with the post-repossession re-sale requirements of Colorado law. At which time, the consumer debtor must be notified of the date and time regarding a "commercially reasonable" sale. Upon the successful sale of the vehicle, the dealer/bank must provide the consumer with a detailed accounting of the proceeds of the sale. The debtor maintains the right to redeem the collateral up to the point of re-sale of the collateral.

Answer 2

In Colorado it will be at least 6 years. Promissory notes and Written agreements such as this last the longest. And the time starts from the last acknowledgement of the debt, such as a payment or phone call.