Posted on
June 12, 2009
at
9:11 am
what does the statute of limitations mean and how does that apply to debt?
Posted on
June 14, 2009
at
4:25 am
The main thing to keep in mind is the statute of limitation depends on your state and the type of debt you took out. So credit cards may have a different statute of limitation than auto loans, for example.
Posted on
June 14, 2009
at
9:35 pm
It is a court prescribed time period in which a creditor or lender can pursue collection of debt from the consumer. What it means for the consumer is that:-he/she does not have to pay that debt if it is considered too old by his/her state.-he/she would not have to worry about all of a sudden being sued from an old debt-he/she can come up with a proper defense and evidence, if needed be.What it means for the creditor is that he/she gives up his/her right to file a suit against the consumer after a period of six years (starting from when the debt was written off) or from the last date of the consumer's credit activity. Debt_Guru and Tom Ace are correct to emphasize that this statute varies from state to state.
Posted on
June 14, 2009
at
9:47 pm
Well what happens if I get creditor calls and I checked my state's statute of limitation and found out that it has expired on my debt? Do I simply tell them "don't call me anymore?!" Is there something else that I can say to them to convince them to stop calling me?
Posted on
June 14, 2009
at
10:06 pm
Good question lia18!If a creditor, lender, or debt collector calls you regarding your old debts, when you know that they are not supposed to do that anymore via the statute of limitations on your state...REMEMBER: to not lay claim to that debt, do not own, or admit to it AND never agree that you are going to make payments for it (especially if their scare tactics is getting to you) and also you may recite your line, "do not call me anymore" just add "the statute of limitations has run this debt."
Posted on
June 14, 2009
at
11:49 pm
Why what happens if I accidentally admit to that debt, if they've put words in my mouth for example...Also, does it mean they can't sue me anymore, ever, if the statute of limitations has expired? I mean, what if they call again?
Posted on
June 15, 2009
at
12:03 am
It might cause "the clock" on your debt to start ticking again. The statute of limitations on your debt stopped ticking on the last activity date of your credit (card)-from the last time you've used it. They may attempt to sue you, but all you have to do is provide proof of the statute's expiration, so keep or make copies of your bills and statements from that debt.Also, send the collection agency a certified letter asking it to stop contacting you regarding that debt, ask for a return receipt, and if after that they still contact you, they'd be in violation of the Fair Debt Collections Practices Act
Posted on
June 25, 2009
at
8:19 am
So if my debt and the statute of limitations ever comes up in a conversation between myself and a collector, should I inform them that I am aware that the statute is up or not? Or is it best just to keep my mouth shut and hang on to all of my records instead? I just hate dealing with these collectors so I am curious what everyone thinks.
Posted on
June 25, 2009
at
5:08 pm
I don't see any harm in letting the collector know that the Statute of Limitations has expired for the account they are trying to collect on. Keep in mind that just because it has expired does not mean the collection efforts will necessarily stop. You still owe the debt. It just means they can no longer pursue legal action against you to collect the debt.
