How long can collection agencies try to collect a debt?
How long can a collection agency try to get money from you? Is there a time frame when they will stop calling? Also, if you don’t pay at all, are they going to give up the account eventually?
Thanks!
There is a statute of limitation (SoL) also called "time barred" on the enforcement of debts. Although a debt’s SoL has expired, that does not prohibit creditors and collectors from attempting to collect the debt. It just means the courts cannot be used to force you to pay the debt through legal actions such as judgments, liens, wage garnishments and so forth.
Every state has different SoL. You can contact your state’s AG’s office to verify your state’s SoL.
Then you can send a certified letter to collection company.
Be advised that I consider any contact not in accordance with the Fair Debt Collection Practices Act a serious violation of the law and will immediately report any violations to my State Attorney General, to the Federal Trade Commission and, if necessary, take whatever legal action is necessary to protect myself. Be advised that I tape record all phone calls and violations of the FDCPA can result in you or your company being personally fined up to $1,000 per incident.
I hope this would help..
Collection agencies can chase after you till they catch you or to the grave, which ever comes first.
The original creditor will charge off your account and sell it off to a collection agency. The negative will remain on your credit report for 7 years and 180 days from the date of last activity (DOLA) which is the delinquency date.
Collection agencies will attempt to collect and can sue, get judgment, attach your bank account, garnish wages, attach property. Your account can be sold to other collectors — some specialize in very aggressive methods.
There is a statute of limitations (SOL) which varies from state to state and the type of debt. Collectors can still call if it’s past the SOL. If they take you to court, it’s an affirmative defense.
Eventually you’re going to want to buy a house and that debt you didn’t pay will jump right out and bite you. Work out a settlement now.
Forever! Or until it’s paid off. The Statute of Limitations may prevent it from suing you but it does not make the debt invalid.
A helpful tip: if the collection agency is just a hired gun for the creditor, and does not own the debt, you can make it go away by giving it a written notice that you will not deal with it and it must stop contacting you. For more information go to the FTC’s website (below) and look up the Fair Debt Collection Practices Act.
Good luck.
Legally they can come after you until you die.
Weather they can collect is another thing. After the statute of limitations runs out they can still sue you but it will be thrown out in court when you show that the S.O.L. has expired.
It will stay on your credit for 7-years from the date of first delinquency and then it will drop off.
So, if you can wait out the S.O.L. and the 7-years for your credit to clean up there is nothing they can do except call and ask you to pay them.
O.B.T.W. after it drops from your credit, no body is going to come back and say you have to pay it if you want to buy a home because it will not show on your credit so they will not know about it.
I swear some people that answer these question work for collection companies.
Well, that depends on the type of account they are collecting. I work for a collection agency that focuses on medical collections. We can try to collect a bill for 7 years from the date of last service. If you dont pay we are able to do an assett search, run a credit report, verify employment, verify banking information, if we do this and think you are able to pay we can file a lawsuit on you, garnish your wages, place leins on your property, do a non wage garnishment(place a hold on all funds in your bank account.) All of these are possible options we can take. If you work with the collection agency most will let you make payments.
I had one that went to court, without my knowledge. IT went to court, and since I did not go to court against it. After I saw it on my credit report, I started calling around. Now since I have been working on this, I do not know if there is anything I can do. It is not my card, and since there is a judgement against me, what can I do? I do not make enough money for them to garnish my wages and I own little to nothing. I have three kids. There was another card that had gone to court without my knowledge, and that was found fraud. What can I do, would you advise? Is there anything I can do to get this off my “shoulders”?
Does anyone know if there are any limitations within Canada?
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Legally nothing can be done. So if the collection companies try to harrash you then you can go legally against them.But if there is a cheque bounce against you then there can be a problem.
You are better off to pay it. It’s your debt and you should take responsibility for it. Not only that, there is a chance they can report it to your credit and you are risking your “good credit”. Good credit is hard to get and I think it’s foolish to risk it over a phone bill. Pay it.
As a side not, I’ve seen credit reports where people saw a collection agency on there and told me it was from an account 15 yrs ago. This happens because a company might write it off and sell it to a collection agency. Then 5 yrs later that collection agency sells it to another one for pennies on the dollar and the vicious cycle continues.
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Creditors do not give up easily and often sell “bad” debts to other collectors. This can result in an endless cycle of harassment and bad credit. Have you considered filing for Chapter 7 bankruptcy to get rid of all of your old debt and getting a fresh start?
I think here in italy they try a few time to get the money from you, if you can’t pay the are going to the court. Sooner or later you have to pay or the take your car ecc.
never ending story, they never stop to collect from you..until you paid off…
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Always best to pay the debts if possible. Who needs the extra stress of dodging collection calls, even if you are passed the SOL.
One question though; can the consumer press charges against the colelction company if it is after the SOL and they keep calling and harassing the consumer? Just curious. I know the first post kind of covers this, but not sure it is quite the same.
Well, that depends on the type of account they are collecting. I work for a collection agency that focuses on medical collections. We can try to collect a bill for 7 years from the date of last service. If you dont pay we are able to do an assett search, run a credit report, verify employment, verify banking information, if we do this and think you are able to pay we can file a lawsuit on you, garnish your wages, place leins on your property, do a non wage garnishment(place a hold on all funds in your bank account.) All of these are possible options we can take. If you work with the collection agency most will let you make payments.
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From what I know, that actually depends upon certain banks and collection agencies. There’s really no specific time or date as to when they’ll contact you – or worse, never. Lots of people I know have experience that, trust me it happens.
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In my experience creditors are very unlikely to give up on your debt collection, and quite often they sell your debt to some other company which may cause you much more trouble not to mention the damage your credit score is going to take.
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Banks or debt collection agencies will never ever stop collecting, its like its in their blood(lolz). Really a nice topic and thanks for posting.
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Your almost always better off contacting the company and trying to work out a payment plan with them that works for you. The only time that isn’t true is when you simply can’t afford to even pay for essentials like food, clothing and shelter. If that is the case, I would still contact the creditors but explain that you can not pay. Once you get back on your feet, you can always start a payment plan. It’s important to communicate your situation with your creditors even if you can’t pay. If you can pay – pay as much as you can. That way down the road when you need credit again you will have a much better chance of getting it.
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Legally nothing can be done
The federal trade commission recommends contacting your creditors as soon as there is a problem repaying a debt. Though collectors can come after you for many years, I don’t think many will come after you until you die (though it wouldn’t surprise me). I knew a woman that purchase a piece of pricey gym equipment and paid for three to six months on it before her husband lost his job. After only a handful of collection calls and letters, she never heard from the company again about the near $4000 balance and it was never repossessed either.
They will stop calling when you pay off your debts. The time frame is depend on your credit history. But don’t think that they will give up the account.
They will never give up. If it was your money, what you do? I don’t think that you will give up on them.. So pay the debts!
A friend of mine had a problem similar to this one, and I’m very much affected because most of the appliances and other assets he had bought are now being sold just to pay his debts.
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Collection agency will continuously pursue you until you’re paid. And I think there is also a time-frame in that depending on your deal.
According to FDCPA or Fair Debt Collection Practices Act Section: 805, you have the right to have Collection or Debt collectors to Cease and Desist further contact with you until you contact with any arrangements or disputes. Send the letter via certified mail, email or by phone. They will stop contacting you by phone and mail, but it will remain on your account for 7 years from the date it was reported not paid to the original creditor. Sometimes they will delete it off your report before hand.
Thanks your great post..
For small debts you might have no problems at all because the effort to collect it exceeds the debt itself. Nevertheless, not paying your debts isn’t the way to go and don’t count of this.
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For UK residents: The Limitations Act 1980 also has additional effects, depending on the type of debt in question:
Unsecured debt
You may have assumed that your creditor has “written-off” a debt if you have not heard from them for a long period. In many cases, it could be down to your failure to inform them of a change of address, but the debt will still exist and creditors are entitled to chase the debt indefinitely (even after the debt has become Statute Barred), however they can only use the legal system to recover the monies for up to 6 years after the last payment was made to the account.
Remember, creditors are still able to pursue an unsecured debt if:
They have previously obtained a judgement against you (a CCJ);
You have made a payment to the account within the last 6 years (this includes anyone else named on the credit agreement)
You have not written to the creditor acknowledging or admitting that you owe the debt during the previous six years.
If a creditor continues to contact you after accepting that a debt is Statute Barred and you have stated that you no longer intend to pay the debt, you may be able to claim harassment contrary to section 40 (1) of the Administration of Justice Act 1970.
What to do if a creditor contacts you after six years
Don’t admit to owing the money.
If a creditor, who you haven’t had any communication with for 6 years contacts you about the debt you should write to them quoting the Limitations Act 1980.
Hope this helps. D from http://wheresellgold.info