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Statutes of Limitations

Can a collection agency still attempt to collect a debt on a repossession after the statute of limitations is up?

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2015-07-14 16:04:34
2015-07-14 16:04:34

How do you know the SOL has tolled? If you think it has, call an attorney for a free consultation. IF you have a case against the collection agency, s/he will let you know quickly.(there will be MONEY involved). Good Luck

Thanks for your answer! Because according to my credit report, the s.o.l started in 11/95. The calls, threats of sueing, etc. still recently. The collection agency has not "purchased a judgement" from the original creditor, because there is no judgement. The original creditor never filed for one and they cannot because it has been 9 years. It has been removed on the credit report. It is believed their trying to still collect the debt is against the law. Right?

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Statute of Limitations (SoL) on debt is the legal time limit that bars enforcement of the debt through the court system. It does not apply to all debts!Not all debt has a statute of limitations! When the SoL expires, it can be used as a defense to bar collectors from collecting through the courts, however the debt DOES NOT go away! Collectors can still attempt to collect the debt using other legal dunning methodsAnd, there is NO statute of limitations on several types of debts, including:
  • Federal Student Loans;
  • Most Types of Fines;
  • Past Due Child Support (state dependent); and
  • *Taxes (In many cases, income taxes have a 10-year SoL but this can be suspended as well as have more time added by filing the proper forms. Check with a local tax resolution expert about your particular situation.

The Statute of Limitations on debt depends on the type of debt and your State's civil debt collection codes. Generally, unsecured debt expires 3 to 6 years after the last missed payment or the consumer's last activity on the account. Written contracts such as car loans generally expire after 6 years. Judgments can last up to 20 years and can require the judgment be renewed at a certain point such as the 6-year point.

Generally, the statute of limitations for collecting debts begins the moment you sign a credit contract! However, just about every state has specific rules on the running of the statutory period and some even have provisions to adjust (toll) this period. The tolling can be for many things...even holidays...or from when you said you would like to work something out (and presumably didn't).

The term "toll" or "tolled" means to "stop the running of a statutory period for a certain period of time". Many states use this term in their statutes of limitation rules and civil codes for debt collection.

Very simply, it can be very confusing and hard to calculate when the SOL has been running or not, and again...it only prevents COURT actions which is one of the last methods most collectors use anyway...the debt remains valid and collectible.

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There are no statutes of limitations on 'bad' debts. Customarily they will sell the debt to a collection agency who will then continue to attempt to collect it from you.

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There is no limitation on how long a bill collector has to attempt to collect a debt. The statute of limitations on taking legal action is another matter. Even if your bill is old, and no longer shows on your credit report, a bill collector can still attempt to collect it from you. If it's over the statute of limitations, they would not be able to collect in court, but they are not prohibited from contacting you for payment. Refer to the Fair Debt Collection Practices Act (FDCPA) for more information on the Federal law governing collection activity.

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There is no statute of limitations for debt collection in Michigan. You can continue to collect as long as the debt is owed. The debt can be sold as well.

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A debt collector can attempt to collect on a debt for as long as she wants. She cannot, however, bring legal action against you once the statute of limitations has expired. At this point, she may still attempt to contact you by phone and written correspondence, but that is legally the extent of the actions.

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That statute of limitations for collection of a default judgement in Colorado is six years. Any person trying to collect after that limit is in violation of the Fair Debt Collection Practices Act.


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