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Debt Negotiation and the Statute
of Limitations for Credit Card Accounts |
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Call Today: (877) 274-1260 |
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If you
successfully complete our program, it’s possible
that you’ll enjoy these benefits: |
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Settle your debts for less than you owe |
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(read here for full details about how much you can expect to save) |
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Resolve your unsecured debts in 18 to 60 months |
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(read here for full details on how
long our program lasts) |
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No Up Front Fees - Don't Pay Till You See Results! |
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| Protection Under the Statute of Limitations |
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Often times, regardless if you are enrolled in a debt relief program or not, credit card accounts become so old that the debtor who owes the creditor is protected under the statute of limitations. The statute of limitations is the period after which a creditor can not pursue legal action, or sue you, to collect the outstanding debt on a particular account. It is important to know that each state has its own statute of limitations. In addition, the statutes differ according to oral and written contracts, as well as open end accounts and promissory notes. For information regarding your state’s statute of limitations, please refer to http://www.cardreport.com/laws/statute-of-limitations.html. Unfortunately, once the debts are sold to collection agencies, the statute of limitations is often violated by a number of collection agencies.
Whether you are in a debt relief program or not, some collections agencies will pursue your debts even after they know that the statute of limitations has passed according to state laws. They will try and convince you that the statute does not start until they have bought the debt. That is completely false. In reality, the statute of limitations begins at the date of your last payment or after the last time the credit card was actively used. If they tell you this, it is a clear violation of the Fair Debt Collection Practices Act (FDCPA), which regulates the measures collection agencies can take in order to collect your debt. There are a number of things that certain collection agencies will say to you in a threatening manner to try and force you to make payments.
For one, many collection agencies have been known to threaten that they will report negative information on your credit report if you do not submit a payment. Do not listen to them, because if the statute of limitations is up they cannot legally report anything on your credit report regarding any particular account (s). On the flip side of that, collection agencies promise debtors that they will erase negative information off your credit report if you submit a payment. This is an empty promise, as they will do no such thing. More importantly, if you do submit a payment after the statute is passed, then the card will be considered active again and the statute will start over- this would be a huge mistake! There are a number of steps you can take to avoid the harassment of collections agencies instead.
For one, try and avoid talking to these agents via telephone at all costs. If you do get on the phone with a collections agent, ask them politely not to call you anymore. In addition, don’t hesitate to send them something in writing asking them the same thing. Make sure you are monitoring your credit report and making sure they aren’t reporting any negative information about the accounts. If so, contact the credit bureaus immediately to clarify that the statute has passed. And make sure you keep any mail they send you attempting to collect the debt after the statute is up. This will serve as proof to the credit bureaus if they ever do submit anything negative on your credit report. And finally, if you need additional information regarding your state’s statute of limitations don’t hesitate to call the state’s attorney’s office for assistance.
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