What is the statute of limitations for a finance company to collect on a past due account?

Answer 1

SOL laws are enacted by states. therefore time limits on SOL vary somewhat. Also there are diffrent SOL's for different debts. Such as written contracts, open end accounts, etc. You should be able to find out the SOL of your resident statae by doing a simple web search..(Name of state, Statute of Limitations for debt) There is no statute of limitations for low long collection attempts can take place on a bad debt. If you owed the debt 10 years ago and never paid it, you still owe it. The creditor can attempt to collect. There is a statute of limitations, established by (your) state law, which allows creditors to sue to recover a bad debt. Even debts past SOL may generate a lawsuit. Time-barred debts do not rule-out a suit. SOL is an affirmative defense to the suit. If no defense were raised, a default judgment could be granted, despite the time-barred nature of the debt. There is a separate period of time for how long an account may show on your credit report. This is determined by federal law, (Fair Credit Reporting Act) and depends upon when the account became delinquent.