Is there a statute of limitations on old credit card debt?

[APL]

If I have a CC balance from 6 years also, that has been sold and resold - am i absolutely required to pay it?

I think I read on these boards that if I write them a letter asking me to send proof of each of the charges made on that card and they do not provide it withing X amount of days, I'm off the hook.

Is that correct?

[AngelinaCatHub]

Yes there is a S. O. L. usually about three years. No need to contact them except for a C & D letter. Check your own state's S.O.L. as they very with each state. Six years is far out of S. O. L.

Be very careful what you write or say as if you admit you owe them, this renews the S. O. L. to current status. Acknowledge no debt but simply tell in the C & D letter to stop corresponding with you. They have to stop by law. 'Hub

[HRx]

Debts this old have been written off by the original creditor but have usually been sold and resold to different collection agencies that in many cases will continue making collection attempts way beyond 6 years. It may be worth getting copies of your credit report to see what debts are still listed.

[despritfreya]

Under GA law:

O.C.G.A. § 9-3-25 (2011)

§ 9-3-25. Open accounts; breach of certain contracts; implied promise; exception

All actions upon open account, or for the breach of any contract not under the hand of the party sought to be charged, or upon any implied promise or undertaking shall be brought within four years after the right of action accrues. However, this Code section shall not apply to actions for the breach of contracts for the sale of goods under Article 2of Title 11.

O.C.G.A. § 9-3-112 (2011)

§ 9-3-112. Payment or written acknowledgment equivalent to new promise

A payment entered upon a written evidence of debt by the debtor or upon any other written acknowledgment of the existing liability shall be equivalent to a new promise to pay.

Des.

[HHM]

I think I read on these boards that if I write them a letter asking me to send proof of each of the charges made on that card and they do not provide it withing X amount of days, I'm off the hook.

As for that question, that is ABSOLUTELY NOT TRUE. If you send a "letter" requesting verification, all they need to send you is a the name of the original creditor and the balance owed.

As for the SOL, it depends on the state. Desp quoted the statute, it appears GA has a 4 year limitation.

However, you, and EVERYONE, need to keep in mind exactly what the SOL is, it is merely a prohibition against suing you to collect a debt, but that doesn't mean they cannot continue harassing (although legal) efforts to collect. They can still call, send notices, etc. Where this becomes really problematic, potentially, is on your credit. These debts remain bad debts on your credit report for a very long time, and as these debts get traded around to various debt buyers, those are new collection accounts on your credit report. So, although the SOL prevents judicial collection, the SOL option does nothing to rebuild credit or stop non-judicial collection activity.

[despritfreya]

However, you, and EVERYONE, need to keep in mind exactly what the SOL is, it is merely a prohibition against suing you to collect a debt . . . So, although the SOL prevents judicial collection . . . the SOL option does nothing to . . . stop non-judicial collection activity.

Absolutely correct and I must add a caveat. . . The SOL argument is an Affirmative Defense to a law suit. It must be timely raised or it is waived.

Des.

[SweetGeorgia]

THANK YOU, despritfreya and HHM, for bringing that up. I live in Georgia and listen to the Clark Howard consumer protection radio show. I love it, but I tear my hair out when he tells callers, "debt collectors can't sue you if the debt is too old." Of course they can sue you! You have a good defense, the statute of limitations, but if you don't answer the lawsuit (thinking the lawsuit itself is invalid) and they get a default judgment against you - you're hosed. That brand-new shiny judgment is completely valid and enforceable.

I really wish the consumer-protection people were more explicit on this point.

[AngelinaCat]

You might wish to go through this article I found on WikiHow.com some time ago. The basic premise is still sound.

http://www.bkforum.com/showthread.php?29743-How-to-Deal-With-Zombie-Debt

Good luck to you!

[SunshineGal]

There is also a statute of limitations for credit reporting. All dergoatory credit with the exception of some public records, can only report for 7 years from the date of last activity. There is some leeway when it comes to date of last activity, but generally it is the last time you PAID, or USED the account. However, I have seen them report for 7 years from the date of charge off.

[df04527]

SunshineGal - very true. I cringe though when I see it referred to as date of last activity. It is actually DOFD (date of first default) that sets BOTH SOL clocks running. Date of last activity could change and it confuses people to no end. Some 3rd party credit reporting services call it DOLA also and that is also inaccurate. In eOscar - date of first default is the field. Also the extra timeframe you referenced regarding the 7years -- is the (up to) 180 days late... I have seen them stay on for the full 7.5 years because of this but by far most will delete after 7 from dofd.

hth

[HHM]

Also, the issue with credit reporting is the illicit re-aging that takes place and the compounding of accounts. One defaulted account has a multiplier affect on your credit. It is not just the default status and missed payments, start adding to that the collection agencies and junk debt buyers that start appearing on your credit report.

SOL is in no way a viable way to deal with debt, it is a fools game.

[df04527]

Agreed and believe me I am not defending them AT ALL but, over time, I have seen them get better about this - if defaulted account is sold to collector - they can report - if it's then sold again to jdb (or any other collector) - they can report as well but original collector has to delete as they cannot prove the debt, if requested. They squander that as well though and I think alot of them do it purposely to hurt folks scores more. They do know how to play the game for sure but I have seen it get a little better over the last several years. I believe that is due to numerous lawsuits that have been brought against them. They still have a long way to go though.

[AngelinaCatHub]

THANK YOU, despritfreya and HHM, for bringing that up. I live in Georgia and listen to the Clark Howard consumer protection radio show. I love it, but I tear my hair out when he tells callers, "debt collectors can't sue you if the debt is too old." Of course they can sue you! You have a good defense, the statute of limitations, but if you don't answer the lawsuit (thinking the lawsuit itself is invalid) and they get a default judgment against you - you're hosed. That brand-new shiny judgment is completely valid and enforceable. I really wish the consumer-protection people were more explicit on this point.

[/QUOTE]


Absolutely. All it takes for anyone to start a suit for ANYTHING, is a printer and a filing fee (per Neal Boortz, a lawyer). This is true and unfortunately, If I sue you for spitting on the sidewalk, I would lose, but you would have the cost to defend. I know as for nine years, I was busted from big bucks to BK7 with serial suits from my enemy, yet nothing went to Court. I won. He is dead (natural causes, "Karma"). 'Hub

[GoingDown]

THANK YOU, despritfreya and HHM, for bringing that up. I live in Georgia and listen to the Clark Howard consumer protection radio show. I love it, but I tear my hair out when he tells callers, "debt collectors can't sue you if the debt is too old." Of course they can sue you! You have a good defense, the statute of limitations, but if you don't answer the lawsuit (thinking the lawsuit itself is invalid) and they get a default judgment against you - you're hosed. That brand-new shiny judgment is completely valid and enforceable.

I really wish the consumer-protection people were more explicit on this point.

Very good point.



Now to the original poster... if they are calling you on the phone and you want them to stop calling, simply send them a cease and desist letter worded something like this...

[The name they already have for you]

[The phone number they are already calling]


"I demand that you cease and desist from any communication with me."

And that's it.

Don't give them any other information.

Never admit to owing the debt. Never even mention the word "debt" in your letter.

In the unlikely even that they file a lawsuit, you must file a written answer to the lawsuit claiming the statute of limitations as your affirmative defense against this lawsuit and attend the court hearing and bring evidence to support your claim to show the judge.

[SunshineGal]

SunshineGal - very true. I cringe though when I see it referred to as date of last activity. It is actually DOFD (date of first default) that sets BOTH SOL clocks running. Date of last activity could change and it confuses people to no end. Some 3rd party credit reporting services call it DOLA also and that is also inaccurate. In eOscar - date of first default is the field. Also the extra timeframe you referenced regarding the 7years -- is the (up to) 180 days late... I have seen them stay on for the full 7.5 years because of this but by far most will delete after 7 from dofd.

hth

I have never seen a credit report list a date of first default, its always been reflected as a date of last activity, which is also what was used to determine if underwriting would require the collection to be paid off. This could have changed, and if it did that is probably a good thing from a consumers point. I can't tell you how many times I've seen a loan officer advise a borrower to pay off an old collection, only to have it change the date of last activity to recent, scores dropped, and the borrower was no longer eligible for the loan.