Statue of Limitations for collecting debt?

[Kahana-ri]

This morning, out of the blue I was served with papers for a debt over 11 years old. When I was in college, I was given credit cards and not knowing then about credit what I know now-I did get into trouble. I guess at this point the courts will determine how the debt is to be settled.

The debt is not on my credit report and I was served in my maiden name. I can't believe that after all this time I am now being taken to court for something that happened so long ago.

I'm just not sure what, if any, rights I have to statue of limitations. I am completely freaked out, never been to court and feel so embarrassed over all of this.

I have learned from my mistakes in the past and have since maintained excellent credit score and strive to keep what few cards I have at low balances, if any.

I am not looking to to get flamed for my past mistake, becuase I am already so upset. I am just asking if anyone has heard of this happening? Thanks.

 

[bettyann29]

I dont really know much about this but you might go to www dot creditboards dot com and look around.. You will find loads of info

 

[shoegirl1020]

I believe the statute is 7 years. However, some of these collection agencies are able to "reactivate" your account every 7 years, keeping the debt on your credit history. I am sending you a PM with more details.

 

[disykat]

Can you contact the lender and ask for a reduction/elimination of the interest if you make payment arrangements?

 

[beachbunny]

Disykat, I believe by contacting them and trying to negotiate the debt, that's one way of waiving the statute of limitations.

Kahana-ri, contact a lawyer asap. If the statute of limitations have lapsed, your lawyer can advise you on how to fight the lawsuit without waiving your rights.

 

[pirateparrot]

I believe in Marylnd, it depends upon how the original application was signed. Generally it is 7 years but it can be extended to 12 years if the application was signed "under seal". To be signed under seal, all that has to happen is for (seal) to be printed next to the signature line.

I am not 100% sure of this but I work for a credit union and it was explained that way to me by the collections manager.

Your results may vary.

 

[babiesX2]

I think it is 7 years. Something like this was on Suze Orman the other night and Suze explained it. The statute of limitations is 7 years, and these debt collectors buy up accounts like yours and use harrassment to get it opened back up. I would be very careful and do not talk to them. Especially don't send them money or even say you will send them money (that renews the case against you). Suze called these type of agencies "bottom feeders."

Edit: I had my tv shows mixed up. I was confusing Suze with Judge Milian. Ooopppssss!

 

[Imzadi]

Suze Orman says the statute is different in each state. Do a web search to find out what the statute is in your state. She also said creditors come out of the woodwork a few months before the limitation is up to try one last ditch effort to get people to pay. At least this way, they get something. Are you sure you were really served papers or is it very tricky & only just imply that you will be taken to court?

Good Luck!

 

[MyGoofy26]

If it's been over 11 years (and you haven't paid recently to reactivate the SOL) don't worry about it. Don't ignore it, but you have an absolute defense. Just walk into the courtroom and claim statute of limitations - it's an absolute defense IF it is brought to the judge's attention. MANY junk debt buyers will attempt to sue in hopes that you won't show and they can get a default judgement.

You can contact the company that is now in possession of the account, but do it all IN WRITING. Spend some time at creditboards and you can get some GREAT tips for drafting a letter. I have a feeling, with a debt this old, that if you send them a request for debt validation and make them well aware that YOU are well aware that this account is past SOL and you intend to show up in court to point that out, they'll drop it. They're looking for default judgements - they KNOW if you show up, they won't get anything but a bill for the costs of pursuing it.

SOL is different in each state but AT MOST it's 7 years. Some states as few as 3 years. Don't confuse SOL with the reporting period for credit reports. Credit reporting agencies hang onto your info for 7 years + 6 months from date of last delinquincy. Legal statute of limitations is COMPLETELY different and based on your state's laws. But there are no states that hang onto credit card debts for 11 years.

Also remember that SOL does not mean they can't try to collect. They can try to collect forever if they want. BUT the statute of limitations gives you an absolute defense, so you will ALWAYS win in court if you show up with those three words. Low level junk debt buyers will buy for fractions of pennies on the dollar and if they can get just a few people who don't know better to pay them SOMETHING, they have a huge profit, so they'll ALWAYS keep trying.

 

[Cheshire Figment]

Are you sure you were really served papers or is it very tricky & only just imply that you will be taken to court?

Was this something you received in the mail or was it something served by hand by a process server? If it was by mail, was a return receipt required?

Many lawyers will not charge for a half hour consult. Get legal assistance before you do anything.

 

[Hannathy]

I know I am going to get flamed but please explain to me why she shouldn't pay?

If she incured the debt what gives her the right to walk away from it and cost us all more in the end. So in other words if you just wait long enough you can buy what ever you want for free. I don't agree with this.

 

[WatchinCaptKangaroo]

It didn't sound like she was trying to get out of paying. It sounded like she was concerned about it going on her credit report.

 

[BlindTyldak]

I know I am going to get flamed but please explain to me why she shouldn't pay?

If she incured the debt what gives her the right to walk away from it and cost us all more in the end. So in other words if you just wait long enough you can buy what ever you want for free. I don't agree with this.

The statute of limitations actually does have some very real benefits to the consumer. Anyone who has ever had to deal with a less than honest collections agency has been VERY happy about that statute of limitations. My husband was served with papers for a credit card debt from 1982 . . . when he was 12 years old. The card had originally been in his (now deceased) father's name, and my husband was a junior. Though the card had not been used in 15 years they tried to bring my husband to court and essentially told him "you can pay us $2000 off this debt or we can draw this out for years making you prove you are who you say you are and you didn't steal an identity". My husband walked into the courtroom and simply said the debt was beyond 7 years, not to mention it was his fathers, and that he would like the case dismissed. Done. I had one that a collections agency tried to say I never paid off (I had) and that I had to send them proof of payment from nine years ago or pay $3000 and change that they claimed I owed. Rather than go through the hassle I reminded them of 7 years as well.

After that great a time, how can the OP be sure the debt that they claim is even accurate? I know I don't keep credit receipts for that long, and I even worked in the industry! After 7 years the onus is on the collections agent to prove the debt is still active and accurate for good reason.

 

[Hannathy]

Yes there are unusual circumstances as in your husband being 12. But she admits this is her debt and knows she didn't pay.

 

[slbeaute]

I know I am going to get flamed but please explain to me why she shouldn't pay?

If she incured the debt what gives her the right to walk away from it and cost us all more in the end. So in other words if you just wait long enough you can buy what ever you want for free. I don't agree with this.

No, I don't think you should be able to get something and then wait and never pay for it. But...there is another side. These credit card companies are hardly innocent or hurting for money. I, too, incurred credit card debt in college and have finally paid almost all of it off (graduated in 98). They give these cards to 18 year old kids who have no way of paying it off or experience with budgets and then we pay for years with interest. I personally had 5 cards my first year of school; these were given to me by the companies when I didn't even have a job. Would any grown adult, say in their 30's, be given a card if they didn't have a job? When I was an RA at the dorms, we had to do the mail. Every day students were receiving credit cards in the mail...every day. They would set up booths in the quads of our campus, etc. You can't tell me these credit card companies were not targeting college students with a plan. Many of us are still paying for these early mistakes on our parts. Honestly, we didn't know better at the time but the companies did. So, yes, I have paid my debts. My problem is that I have paid more than what I ever should have paid. What repurcussions have these companies ever had for clearly targeting inexperienced kids for profit?

 

[Hannathy]

No you have paid exactly what you owed and agreed to. If you are in college you know how to read. Remember just say no it also applies to credit cards.
I don't fault the credit card companies they are in business to make money and as long as the are legal they have the right to try.

 

[themooch]

I found a website that lists the SOLs by state. This might be a good reference to keep. Hope this helps!

http://www.fair-debt-collection.com/SOL-by-State.html


Anna

 

[my3kids]

I agree...being in college doesn't mean a person should be able to spend just because they don't understand credit. I hate that companies target young adults for this very reason, but no one forces a college student to sign the form. They really do disclose in fine print what a credit plan involves.

 

[Pooh nut]

In Rhode Island the SOL is 10 years for open ended accounts. And as previously stated you must present this defense at trial. As a side note you could countersue on the grounds of attempting to collect a debt that is no longer collectable. In any case be sure to have it dismissed with prejudice so that this will forever go away, Have you pulled your credit reports lately. Can you prove how old the debt is. Remember it is 10 years from date of last activity.

 

[Kahana-ri]

Have you pulled your credit reports lately. Can you prove how old the debt is. Remember it is 10 years from date of last activity.

I pulled my credit immediately, and there is nothing on it regarding this debt. Another question would be that the debt originated in CA where I grew up. The SOL there is 4 years. Of course RI seems to have one of the longest SOL in the US