Re: Charge offs and statute of limitations

[ Follow Ups ] [ Post Followup ] [ Credit Forum Index ]

Posted by Bob on May 28, 2001 at 03:03:08:

In Reply to: Charge offs and statute of limitations posted by Bob on May 26, 2001 at 13:28:48:

The Statute Of Limitations is the time limit for a creditor to file a lawsuit against a delinquent debtor. If a creditor sues on an out-of-statute debt, the debtor can have the lawsuit dismissed on the basis of the expired time limit. Usually, creditors won't sue on such old debts, although they will do it occassionally, hoping that the debtor won't challenge it.

However, there is *no* time limit for regular collections action. I have heard of banks "cleaning house" and sending one last collection letter before selling off debts that are sometimes as ancient as twenty years old. The unpaid debts are then sold to bottom-feeder collection agencies at a deep discount.

The credit card offer that you received was probably perfectly legal.

While collectors can legally ask you to pay, via letters, phone calls, or offers to transfer the old debt to a new credit card, you can also legally order them to stop bothering you.

Even if the collectors (such as the ones that offered you the maxed-out credit card) have actually bought the debt, they are still considered "third-party" debt collectors covered under the federal Fair Debt Collection Practices Act. Check out the link below for the Collection Agency FAQ (Frequently Asked Questions), which explains your right to order third-party collectors to cease contact with you...

Collection Agency FAQ (Freqently Asked Questions)

Follow Ups:

Post a Followup

Name:
E-Mail:

Subject:

Comments:
: The Statute Of Limitations is the time limit for a creditor to file a lawsuit against a delinquent debtor. If a creditor sues on an out-of-statute debt, the debtor can have the lawsuit dismissed on the basis of the expired time limit. Usually, creditors won't sue on such old debts, although they will do it occassionally, hoping that the debtor won't challenge it. : However, there is *no* time limit for regular collections action. I have heard of banks "cleaning house" and sending one last collection letter before selling off debts that are sometimes as ancient as twenty years old. The unpaid debts are then sold to bottom-feeder collection agencies at a deep discount. : The credit card offer that you received was probably perfectly legal. : While collectors can legally ask you to pay, via letters, phone calls, or offers to transfer the old debt to a new credit card, you can also legally order them to stop bothering you. : Even if the collectors (such as the ones that offered you the maxed-out credit card) have actually bought the debt, they are still considered "third-party" debt collectors covered under the federal Fair Debt Collection Practices Act. Check out the link below for the Collection Agency FAQ (Frequently Asked Questions), which explains your right to order third-party collectors to cease contact with you...

[ Follow Ups ] [ Post Followup ] [ Credit Forum Index ]

Top Of Page