Debt Relief Solutions- Statute of Limitations and Your Debt

Whether consumers are attempting to handle their debts or not, there is a time period in which lawsuits can be filed and collection attempts can be made. This period is known as the Statute of Limitations and is different in every state of the U.S. However, under this law, debts cannot be collected, sued for, or otherwise sought to be paid by creditors or collectors after this period has expired. Some states offer as little as four years, while others will go up to 15 years or more depending on the type of debt and the state regulations. Collection agencies do not adhere to the same Statute of Limitations as lawsuits, and consumers will have to refer to the Fair Debt Collection Practices Act to determine whether their debt Statute has expired or not.

Some collectors will attempt to tell debtors that the Statue of Limitations doesn't start until they have purchased the debt. However, this time period actually starts when the last payment is made or after the last time that the card was used. If someone tells you misleading or false information, it is a violation of the FDCPA. This act was designed to protect debtors from harassment by collection agencies and other reporting groups, although many agencies will still use threats and harassing measures to attempt to collect debts from consumers.

Collection agencies are less than exemplary with their behavior. Many times, they will attempt to tell you that they will report negative information, pursue legal action even if they have no intention of doing so, or threaten you with other penalties that are not actually going to happen. If the Statute of Limitations has expired on your accounts, they can't do anything to your credit report or pursue legal action against you. Even when they tell you that they will fix your credit report if you make a payment, that is a lie. If you make a payment after the statute has expired, the account is considered active and open, and what happens next is fair game because the Statute has started over. Here are some steps to avoid harassment by collection agencies:

-Don't talk to collection agents on the phone if you don't have to. If they call, politely ask them not to call again, and don't hesitate to request in writing that they stop contacting you due to the Statute of Limitations.

-Keep tabs on your credit report to ensure that the collection agency isn't reporting any negative information about your debts. If they are, contact the credit agencies to let them know that the Statute has passed so that they can rectify the situation.

-Keep any letters or mailings that you receive as proof that they are still attempting to collect the debt. This will help you to prove to the credit bureaus that the collection agency is in fact still trying to collect so that you can keep your credit report clean.

-If you need information about the Statute of Limitations in your state, don't hesitate to contact the Attorney General of your state for help.