Debt Help Services

Posts Tagged ‘collect’

Question: How long after chargeoff can a collection agency collect on a debt? Is there a statute of limitations?

Department store card was charged off in 1999, debt was sold to agency #1, who sold it to agency #2. Today I’m getting a call from Agency #3 who says there is no time limit to collecting a bad debt. I say he’s wrong.

Answer: Like the other posters said, there is a time limit where they can legally collect.
But with that being said, they can continue to call or write to you for payment unless you inform them that the account is past the legal collecting SOL (if it is) or if you request validation, especially before the first 30 days expires from their first contact.

While it is illegal for them to file suit on a time barred debt, that does not stop them from filing. It would be up to you to use a SOL defense if you are past the collecting SOL when they file suit.

I would not recommend simply sending a cease and desist letter as that will not protect you in keeping them from suing you if they are planning on doing that.

You might consider sending them a SOL letter if you are past the legal collecting SOL for your state.
You should also check your credit reports to make sure they have not listed the account since it would be past the reporting period if it has been since 1999.

You might click on my profile and do some reading in the links I have listed – for the FDCPA, to learn your states collecting SOL and especially the last link to find sample letter templates for a SOL letter if you are out of SOL or for validation letters if you are still within SOL.

Justice denied as debt seizures soar

Minnesotans struggling with debt have their bank accounts and pay seized with no judicial oversight.

Debt Collection Scam! Don’t pay what you don’t owe

Question: can a company take me to court to collect debt from 10 years ago even though i am paying restitution?

i have been convicted and served 5 year sentence for many debts and i am paying restution for over 10 years. now a company is sending me letters tellig me to pay or they will take me to civil court. Can they?

Answer: The Statute of Limitations does not cause your debt to go away after it expires. If the creditor files suit, the consumer has an absolute defense. The consumer must offer the new evidence to avoid a judgement. The evidence will consist of papers the consumer files to support his claim. If the creditor sues you, and you do not prove to the court that the Statute of Limitations expired, you will have a lost lawsuit and a judgment against you.

Remember: the Statute of Limitations begins to run from the day the debt – or payment on an open-ended account – was due.

Here’s a state by state listing of the statue of limitations on debt:

http://www.creditinfocenter.com/rebuild/statuteLimitations.shtml

Only WV and Ohio seem to have anything over 10 years. Depends on the type of debt.

Animal control uses state program to collect debts

The city of Charlotte is looking to cash in on thousands of dollars in overdue fines from residents who owe debts to Animal Care and Control. Officials say a state program will make sure they pay up.

Arbitration or Arbitrary?: The Misuse of Arbitration to Collect Consumer Debts Part 1