FAQ: Can Debt Collectors Pursue After the Statute of Limitations?

Can Debt Collectors Pursue After the Statute of Limitations?

The Debt (2011 film) (Photo credit: Wikipedia)

FAQ: Can Debt Collectors Pursue After the Statute of Limitations?

Debt collectors can try to collect in most states after the statute of limitations has expired on the debt provided they don’t threaten litigation.  The statute of limitation’s expiration does not prevent the creditor from reporting the debt to the credit bureaus!

Legal Statute of Limitations or Credit Bureau Statute of Limitations?

Most debts must be dropped from your credit report after 71/2 years.  The credit bureau’s legal duty to do this is not the same thing as the lawsuit statute of limitations.

A Statute of Limitations is the law that provides a “drop dead” date for the pursuit of a legal claim.  These vary from State to State so be careful to check the law in the state where the debt was incurred.  It is usually longer for a written contract than it is for an oral contract.  Be particularly careful about hearsay on this subject.  Quite frankly most people don’t know what they are talking about when it comes to this.  Partial payments should not be made.  A partial payment jump starts the statute of limitations with a brand new beginning as of the date of the partial payment.

Just because you can’t be sued doesn’t mean that you don’t technically owe the debt.  The Fair Credit Reporting Act allows reporting of the debt to the bureaus for up to 7 years after the date of first delinquency, a longer time than the statute of limitations in many states.

Always keep in mind that some states have tolling laws that suspend the statute of limitations or totally re-set the clock if you make a partial payment, acknowledgment or written promise to pay. The answer to FAQ: Can Debt Collectors Pursue After the Statute of Limitations?  Yes.  Bear in mind It’s up to the consumer to check their state’s specific time periods for specific contracts.

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After practicing law for 37 years Edward F. St. Onge, Sr. now devotes all his time to helping consumers achieve a high credit score with amazing speed. Learn the counter-intuitive secrets to credit scoring through his down to earth instructions backed by extensive knowledge of the laws and trends. All of the latest tricks and techniques that they don't want you to know now at your disposal. At last a level playing field for the consumer!

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