What is the statute of limitations for debts that have been sent to collection agencies?
Isn’t the statute of limitations for debts 7 years? I have a collection agency calling me several times a day and the debt is coming up on 7 years old. I refuse to pay it because it’s from a video store that says I didn’t return a movie. It never happened. I disputed the debt in writing years ago but they said I still owed the debt. What do I do?
Yes, after 7 years they "say" it comes off, but I have also heard that they can sell it to another agency for another round.
Yes, negative accounts should be removed after 7 years but you may need to request it. It’s best to get a copy of your credit report (you can get one free report each year from each of the three reporting agencies) to review the account in question.
It’s best to correct the matter with the account holder directly, but if that does not work and it is 7 years old, you should send a copy of your correspondence to the video company to each of the three reporting agencies. Include your drivers license with your ssn and a letter noting your dispute and the age of the account. It may take some time, but the agencies are required to fix it.
Also note, if the account was sold, they may consider the 7 years to start from the new account… Good luck.
As the previous two posters put it the debt can stay on there for 7 years. However, they had it slightly off. It is 7 years since the last placement on the credit history, not the first. If you demand it be removed & it is placed with another credit collection agency, it can be put back on. Also, if it is on one of your credit histories and not on the other two major ones, it can always turn up on them when you ask for it to be removed from the one. You have to request one of each credit agency’s credit report to make sure nothing is on them. If you don’t, you may find some things you disputed off of one rotating to the others, still affecting your credit history. Also, the more traffic you have on your history, regardless if it is the same thing shifting between the different histories, the lower the score you will have! Good luck. BTW, just pay it, get a release from the original creditor, & get on with your life. Is the principal really that big a deal to hurt your history for so many years?
The 7 years is how long negative marks remain on your credit report (from the date of first delinquency). There is a separate statue of limitations for how long you have a legal obligation to repay the debt. The link below breaks it down state by state.
http://www.creditinfocenter.com/rebuild/statuteLimitations.shtml
As far as the rules collection agencies must follow, most of that is covered on in the FDCPA and FCRA. Browse around that site, it has both those laws as well as other information about fighting collection agencies.
p.s. Bruce P is COMPLETELY off base and just spewing the lies that collection agencies tell you. If you read the Fair Credit Reporting Act you will see that I am correct, not him.
Also, if you pay the debt now, it may restart the statute of limitations.
Charlene, you are right and the 7 years being the length that the credit reporting agencies keep a bad debt on their records. And that would be 10 years for a judgment. Your comment is knowledgeable and very accurate. Credit reports, creditor collection attempts and statue of limitations are all very tricky. Your best research sometimes is a attorney that specializes in this venue.
Ann@debt solutions´s last [type] ..Debt Settlement Los Angeles
I have never had long enough debt to have a debt collector to call me. However, I have had student loan debt, and was unable to repay it right after college. They would call me personally 5-10 times a day, and even harassed family members with phone calls.
I took them to court for excessive amount of calls. I was able to walk away debt free because of the specific times they have called me and my family.
If anybody is in debt, the collectors will go to the extreme to get their money; ultimately hurting them selves is some cases.
7 years is not a big time in loan paying. I wonder how big debt it is that you are not paying here? Think you should just pay up and move on so that you can have a clear credit history from now on.
You have to decide what it is you are going to take a stand on. Like Dave said, it may be better just to pay it (assuming it is less than $50 for a DVD, which I think is likely). You can also negotiate it down, and make sure that the debt collector records that you completely disagree with the charge and are only paying it as a settlement, you are not guilty of the charge.
You have to be careful assuming the statute of limitations is only 7 years. It depends on what state you live in and the type of debt.
Also, just because a debt is past the SOL does not mean it can’t still be collected on, you just can’t be sued for it.
It never happened. I disputed the debt in writing years ago but they said I still owed the debt. …thanks
Its frustrating that it comes down to your word against a collection agency’s, and you have to be the one to jump through hoops and not them! Suppose that you pay the debt just to settle the matter, does it come off your report immediately or does it linger for a while because it was on your report for so long?
I’ve never had a debt that lasted that long. I understand that you don’t want to give money for something that you didn’t buy, but if that leaves a mark on your credit…I’d pay it, and be very angry through that day. Then, I’d just forget about it.
Ana @ Dias Fertiles´s last [type] ..Días Fértiles De La Mujer Para Quedar Embarazada
I think when we pay debt at that time in return they give us receipt which is proof that our debt has been paid. So if you have that receipt then no one can harass you regarding your debt so show that receipt to them and you will be free I think.
Legally they can place it on your report on the day the receive it. Many of them are doing this in order to avoid being blocked if you dispute the debt. Once it has been placed, all they have to do (legally) is place a message that the debt is being disputed, but they don’t have to remove it.
They sell your information to collection firms. Many of these firms operate with highly illegal practices up to and including harassing and threats. I have zero respect for the collection industry and will not hesitate to hang up on a debt collector or any kind of telemarketer.
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Légalement, ils peuvent le placer sur votre rapport sur la journée de la recevoir. Beaucoup d’entre eux le font dans le but d’éviter d’être bloqué si vous contestez la dette. Une fois qu’il a été placé, tout ce qu’ils ont à faire (légalement) est de placer un message que la dette est contestée, mais ils n’ont pas à le supprimer.
I’m sorry you are in this situation. I was in a similar situation but was able to get it resolved. I’m not sure about the statute of limitations but I would think 7 years later a video wouldn’t be that big of a deal.
Amy @home care concord nc´s last [type] ..ComForcare Beats The Heat
Debt is always a complicated situation. When I have to deal with this, I usually talk to a professional. I find they are the best people to navigate this type of issue.
Leigh @atlanta dog aggression´s last [type] ..Why Dog Obedience Training?
My girlfriend once had a similar situation based on a cellphone bill that she had acquired. I believe that the limit is 7 years, and you will notice that when that 7 year mark is coming up, the creditors really try to intimidate you into paying. After the 7 year mark they can still try and collect the debt, but you are under no obligation to pay (I don’t know if this is legal or not).
Mike@Investing in Silver´s last [type] ..Silver Canadian Maple Leafs
Send them a letter with return receipet to show the proof of debt, and keep the return reciept as proof that you sent a letter, and if they are reporting on your credit report dispute it with Credit reporting agency.
go to creditboards.com/forums you will find helpful information.