“Who is Cascade Capital and why are they suing me?”
They may be claiming that you owe them money from an old car loan, where there was supposedly a repossession.
You may be wondering, “What should I do?”
Here are some things you need to keep in mind when you’re dealing with this company.
You most likely have never directly dealt with Cascade Capital before.
They wouldn’t have been the ones who let you borrow money from them for the car.
Here’s an example of how it usually works with car loans.
You buy the car, and somewhere down the line the dealership sells the loan to someone else.
Then that company sells it to Santander, and eventually Santander sells it to Cascade.
There may be other steps and companies involved, but this is the typical way the process works.
Cascade Capital will say that they now own your debt.
However, they have to prove that they do own the loan.
They want to come in to court, whether they bring a witness or not, and have the judge say, “Well, you showed up for court, so you must be the owner of this debt.”
That’s not how lawsuits or trials work, though.
Cascade needs to be able to prove that they bought your old car loan.
They have to prove that they are the owners, and that their records are accurate.
You may be thinking, “Well, how do they do that?”
Cascade Capital needs to go back and trace the ownership to the car dealership, especially if they’re the third or fourth company to own it.
Cascade Capital tends to sue consumers after the four year Statute of Limitations has expired.
Typically with the sale of a vehicle, the law considers this to the sale of a “good” which means the UCC controls it.
The UCC, or Uniform Commercial Code, states that if there’s going to be a dispute of this sale, then whoever is suing has 4 years to sue.
At the latest, this timeframe starts when the repossession takes place.
Generally, however, it starts before that.
Looking forward from a repossession, Cascade Capital has 4 years to sue you.
What about where you did not make a payment but a debt buyer claims you did to restart the Statute of Limitations?
Really in any debt buyer context, and especially where we have a vehicle involved, we warn our clients that that a claim may be made that a payment was received after the debt went into default.
Let’s say the repossession was in 2009, but they sue you in 2016. That’s a problem. But often the debt buyer will say 3 years, 11 months, and 28 days before the suit was filed you made a small payment to them.
To be fair, it is normally not a company like Cascade saying you paid them. But they will say the records indicate that you paid a previous company or a debt collector for previous company. In other words, Cascade (or whoever is suing you) will not have made these records but they will claim the records exist.
But what if you know you didn’t make that payment.
So, you ask them to show you proof that you made that payment.
Maybe they say you paid by check but they don’t have a copy of the check. Then if you pull your banking records and there is no check, what will they say then?
We’ve seen debt buyers claim that you made a cash payment.
Which is surprising to you, because you’d think that you would remember sending cash for a car loan in 2012, especially if the repossession was in 2009.
Then they’ll ask the judge why would any debt collector lie about something like this.
It’s because of the 4 year Statute of Limitations. If you make a payment, they will argue you restarted the statute of limitations so they get 4 years from when you last made a payment.
There’s a difference between consistent payments and inconsistent payments.
It seems odd that we, the consumer, would only make one small payment on this.
Be aware that this is what a debt buyer like Cascade Capital will argue in lawsuits.
We don’t get mad at them, we just expect them to behave this way.
Make sure you protect yourself, and that you prepare yourself for what Cascade Capital does.
If you’ve had the same bank for a while, check your bank records against what Cascade Capital is saying about you making a payment.
Sometimes they’ll say that you sent a check, but they lost that check.
Usually when you challenge this claim, they start to change their story or they’ll just say you must have made the payment because some spreadsheet they have says you did even though they have no proof.
If you did make a payment, then we should talk about it.
However, if you didn’t, we should still talk.
Point is you need to know your options and we will be happy to help guide you through this process so you can make the best decision. And that applies even if the lawsuit is within the Statute of Limitations.
Putting the Statute of Limitations aside, they still have to prove they own the debt.
Cascade Capital struggles with proving they own the car loan.
There’s a couple of reasons.
1.) They don’t want to prove it, or
2.) They don’t actually own the debt.
If they wrongfully sue you, then they’re in big trouble.
Because they’re breaking Federal and State laws.
This gives you the opportunity to sue them in Federal Court, and punish them for violating the law.
If you live in the state of Alabama and are dealing with a Cascade Capital lawsuit, give us a call.
You can reach us by phone at 1-205-879-2447, or you can fill out a contact form and we will happily set up a meeting to talk with you.
I look forward to chatting with you!
Have a great day.