Re-Aging A Debt from a Credit Card- Don’t Allow it!
Recently I received a letter from a collection agency asking to settle a debt for 1/3 of the amount they said I owe. Sounds good? Bad.
First, I don’t owe that money. Then may be I should write a letter telling them so. Wrong!
A couple of years back this company took me to court. After almost a year of postponing dates in civil court and hours waiting in court ( I represented myself, because I did not have the money for a lawyer and my defense was, this is not mine.. you proof that it is). It’s the american way. Anybody can say you owe them what ever. But the thing is they have to proof it. Just before going to trial, they dropped the case. Had they lost I would have charge them for my expense of time, printer ink and paper. Not a big deal, but they would rather withdraw and wait to see if you are uninformed, stupid or both.
What they were trying to do was re-age that debt. You see, the statue of limitations is already come and go, so they wanted me to pay something or start corresponding so they can start the clock going all over again. It’s called re-aging a debt.
Below you will find more on re-ageing a debt and the statue of limitations on credit card debt per state.
Remember that you need to find out through google search or a statement where the headquarters is and from what state they do business (Not necessarily the state you live in). If the statue of limitation is past or about to pass, you should follow the instructions below.
This is posted by Adam for adamfoxie*
(Adam is not a lawyer. However the information below is been obtained by Connie Parter from creditcard.com)
My community has credit and credit problems, adamfoxie* is trying to help with information on all facets of your life. In turn I would ask you that you use the advertisers on this page; particularly the ones sponsored by gays to gays to sustain the work we do and the LGTB orgs. that serve the community.
State statutes of limitation for credit card debt
Collectors have a limited time to file lawsuits over unpaid card debts
CreditCards.com compiled this state-by-state listing of credit card debt collection statutes of limitations. Click on a state; more information will appear below the map. See notes and explanations.
Notes: The chart shows the time limit on written contracts or open-ended, revolving credit accounts such as credit card agreements. Many state laws and codes do not refer specifically to "credit cards" or "credit card agreements." Instead, the statutes may use the general terms "written contracts" or "open accounts." State laws are subject to change. Court decisions regarding limitations on the right to file suit may alter state laws; those rulings may then be overturned. The chart is current as of Dec. 12, 2011. Write to Editors@CreditCards.com to report updates or corrections.
What a statute of limitations is, how it works Creditors and debt collectors have a limited time window in which to sue debtors for nonpayment of credit card bills. That limit is set by a state's statute of limitations. Anyone with credit card debt should know their state's statute.
"In most states, the statute of limitations period on debts is between three and 10 years; in some states, the period is longer," according to the U.S. Federal Trade Commisison (FTC). Debts that have lingered longer than the statutes allow are often referred to as "time-barred debts."
Time-barred debt
"If a debt collector sues you to collect a time-barred debt, you can have the suit dismissed by letting the court or judge know the debt is, indeed, time-barred," according to the FTC.
"If a debt collector sues you to collect a time-barred debt, you can have the suit dismissed by letting the court or judge know the debt is, indeed, time-barred," according to the FTC.
Debt collectors and consumer advocates, however, caution that the statute of limitations (SOL) does not prevent debt collectors from attempting to collect on debts. They just cannot successfully sue to collect the debts -- assuming the debtor shows up in court to assert his or her rights.
A debt collector may not threaten to sue on a time-barred account.
|
| -- Rozanne Andersen ACA International |
"A debt collector may not threaten to sue on a time-barred account," says Rozanne Andersen, general counsel of ACA International, the largest debt collection industry trade group. "The request to pay a debt after the SOL has expired is legal."
Mary Spector, an associate law professor at Southern Methodist University's Dedman School of Law in Dallas, says many consumers ignore court notices about old debts and end up losing cases that might otherwise be thrown out of court because the statute of limitations has run out.
"In Texas, it's usually up to the defendant to show that the debt is time-barred under the statute of limitations," Spector says. Her advice: Don't ignore the court papers and get a consumer lawyer to represent you.
Court rulings may take precedence To construct the map above, CreditCards.com examined statutes, judicial opinions and legal experts in all 50 states and the District of Columbia. In most states, the statute of limitation is clear. In some, however, we could find no definitive answer because of conflicts between state laws and court rulings; those states are shaded gray.
The uncertainty arises because although a state may have laws or codes governing the time limits for filing civil suit regarding contracts, court rulings may take precedence and make the effective statute of limitations for consumer contracts or debts earlier or later than state law.
That was the case in Georgia in January 2008, when a Georgia Court of Appeals ruled (in Hill v. American Express) that the statute of limitations on an unpaid credit card debt was six years. The Georgia code sets the limit on open-ended accounts at four years. This means that if a creditor files a lawsuit against a debtor in that state, the six-year SOL would likely prevail in that court case.
There are other reasons why the time limit on debt collection lawsuits may not be clear in every case. The statute of limitations may depend on whether credit cards and the agreements that govern them are considered written or unwritten contracts or open accounts. A state law may set different statutes of limitations based on the type of contract involved. Those who attempt to get clarification from state attorneys generals are told to consult an attorney for a legal opinion, and attorneys' opinions vary.
Federal lawThe Fair Debt Collection Practices Act, the federal law that governs how and when debt collectors can contact consumers and collect on unpaid bills, dictates where legal action on debts can be filed. According to Section 811 of the law, debt collectors may file suit only in the jurisdiction where the "consumer signed the contract" or where the consumer lives.
Some credit card agreements may stipulate that the laws governing the home state of the issuer determine the terms and major provisions of the contract. That means that if the credit cardholder lives in Maine, but the issuer is based in Delaware, the Delaware statute of limitations may apply.
Do not confuse the statute of limitations with the length of time that a debt may remain on a credit report. A bankruptcy, for instance, will remain on a credit report for 10 years regardless of the statute of limitations. If a creditor successfully wins a judgment for payment of a debt, that information can remain on a credit report for seven years.
When does the clock start to tick? It may vary by state, but generally the statute of limitations begins when a credit card account becomes delinquent -- the date of the last payment. However, in some states the clock begins to tick six months after the last payment. To determine the deadline to file suit on the debt, add the number of years of the statute of limitations to the start time.
Re-aging debt Consumers should be aware of a practice called re-aging of old debts. The clock on the statute of limitations may start anew if a consumer makes a payment -- even a small amount -- on a debt that has exceeded or is approaching the end of the statute of limitations. Acknowledging an old debt may also extend the time limit on potential debt collection lawsuits. Consumer advocates now advise debtors not to acknowledge old debts or debts they don't recognize as their own to avoid inadvertently resetting the clock on the statute of limitations.
Any new activity on it could re-age it and make it more collectable.
|
| -- Lauren Saunders National Consumer Law Center |
"Any new activity on it could re-age it and make it more collectable," says Lauren Saunders, managing attorney for the National Consumer Law Center, a consumer rights group. "You're better off ignoring a call about an ancient debt. It's best to send them a letter saying I don't recognize this or please verify it."
By Connie Prater
Love And Pride Sale! Up to 70% OFF on Selected Products Buy Now! Special offers and sales for all products! Up to 70% off, Free Shipping! Buy Now!||||
Comments