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Send message to Anthony Lemons
Sub: #1 Statute of Limitation on Debts. State by State.
Replied on 10-29-2007, 12:01 PM
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Statute of Limitations on Debts
Below are the State Statutes of Limitations for various kinds of agreements. All figures are in years.

Oral Contract: You agree to pay money loaned to you by someone, but this contract or agreement is verbal (i.e., no written contract, "handshake agreement&quot. Remember a verbal contract is legal, if tougher to prove in court.

Written Contract: You agree to pay on a loan under the terms written in a document, which you and your debtor have signed.

Promissory Note: You agree to pay on a loan via a written contract, just like the written contract. The big difference between a promissory note and a regular written contract is that the scheduled payments and interest on the loan also is spelled out in the promissory note. A mortgage is an example of a promissory note.

Open-ended Accounts: These are revolving lines of credit with varying balances. The best example is a credit card account. Please note: a credit card is ALWAYS an open account. This is established under the Truth-in-Lending Act:

TITLE 15 > CHAPTER 41 > SUBCHAPTER I > Part A > § 1602
§ 1602. Definitions and rules of construction(i) The term “open end credit plan” means a plan under which the creditor reasonably contemplates repeated transactions, which prescribes the terms of such transactions, and which provides for a finance charge which may be computed from time to time on the outstanding unpaid balance. A credit plan which is an open end credit plan within the meaning of the preceding sentence is an open end credit plan even if credit information is verified from time to time.

Why should you care about the Statute of Limitations (SOL)

When does the Statute of Limitations start on a debt?

For Statutes of Limitations on judgments, go here.


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State
Oral
Written
Promissory
Open-ended Accounts
State Statute: Open Accounts

AL
6
6
6
3
§6-2-37

AR
5
5
5
3
§16-56-105

AK
6
6
3
3
§09.10.053

AZ
3
6
6
3
§12-543

CA
2
4
4
4
§337

CO
6
6
6
3
§13-80-101

CT
3
6
6
3
§52-581

DE
3
3
3
4
§2-725

DC
3
3
3
3
§12-301

FL
4
5
5
4
§95.11

GA
4
6
6
4
§9-3-25

HI
6
6
6
6
HRS 657-1(4)

IA
5
10
5
5
§614.5

ID
4
5
5
4
§5-222

IL
5
10
10
5
735 ILCS 5/13-205

IN
6
10
10
6
§34-11-2

KS
3
6
5
3
§84-3-118

KY
5
15
15
5
§413.120

LA
10
10
10
3
§3-118

ME
6
6
6
6
§5-511

MD
3
3
6
3
§5-101

MA
6
6
6
6
c.260, §2

MI
6
6
6
6
§600.5807

MN
6
6
6
6
§541.05

MS
3
3
3
3
§15-1-29

MO
5
10
10
5
§516.120

MT
3
8
8
5
27-2-202

NC
3
3
5
3
§1-52(1)

ND
6
6
6
6
28-01-16

NE
4
5
5
4
§25-206

NH
3
3
6
3
382-A:3-118

NJ
6
6
6
3
25:1-5

NM
4
6
6
4
§37-1-4

NV
4
6
3
4
NRS 11.190

NY
6
6
6
6
§2-213

OH
6
15
15
6
§2305.07

OK
3
5
5
3
§12-3-95

OR
6
6
6
6
§12.080

PA
4
4
4
4
§5525

RI
10
5
6
4
§6A-2-725

SC
3
3
3
3
SEC 15-3-530

SD
6
6
6
6
§15-2-13

TN
6
6
6
3
28-3-105

TX
4
4
4
4
§16.004

UT
4
6
6
4
78-12-25

VA
3
5
6
3
8.01-246

VT
6
6
5
3
§3-118

WA
3
6
6
3
RCW 4.16.080

WI
6
6
10
6
893.43

WV
5
10
6
5
§55-2-6

WY
8
10
10
8
§1-3-102


Why should you care about the Statute of Limitations (SOL)?
Every day, consumers pay off collection accounts and charge-offs which they do not have to pay off because the Statute of Limitations has already expired for the open account. Consumers pay off these accounts because the accounts still appear on their credit reports.
This information can be a powerful weapon in unburdening yourself of old debts, as creditors have a limited time in which to sue you. Remember: the Statute of Limitations begins to run from the day the debt - or payment on an open-ended account - was due. Also, this has nothing to do with how long an negative credit item can remain on your credit report. To view these credit reporting rules, click here.

Consumers also pay off these accounts when they are not on their credit reports. Even though an account was removed from their credit file, a collector watched their credit report for any activity (actually the computer was watching any credit activity). When the collector spotted the activity, he called the consumer for payment. All the consumer needed to say to the collector was, "I have an absolute defense--the Statute of Limitations has expired."

The Statute of Limitations does not cause your debt to go away after it expires. If the creditor files suit, the consumer has an absolute defense. The consumer must offer the new evidence to avoid a judgement. The evidence will consist of papers the consumer files to support his claim. If the creditor sues you, and you do not prove to the court that the Statute of Limitations expired, you will have a lost lawsuit and a judgment against you.


When does the Statute of Limitations start?
You might be asking yourself, "It has been such a long time since my "open account" has had any activity. When does my Statute of Limitations started ticking." Use your credit report as a reference. Your credit report will tell you the date of last activity for your account. You will have your credit report with the date of last activity and a certified letter stating that the statute of limitations expired.
Depending on what state you live in, if you make a partial payment, you could be postponing the Statute of Limitations' taking effect on your collection account or charge-off. A collector might call you one day and say you waived your rights when you made a deal with the collection agency. Do not take anything a collector tells you for granted. Make them prove it to you, in or out of court. For about half the population, the Statute of Limitations started ticking the day they made the last payment for their account.


What state should I use in figuring out the Statute of Limitations?
According to Ron Opher, of ron4law.com: In my opinion, the FDCPA applies, and so the only relevant jurisdictions are where the consumer signed the loan application and where the consumer currently lives (bank location is irrelevant). If those states are different, I believe the creditor has the choice of where to sue and can select the state with the longer SOL. There may also be an argument that the contract was signed "under seal" which might lead to a longer Statute of Limitations than an ordinary contract.
Summation:
Even though a debt is an absolute promise to pay, if the Statute of Limitations expiring is in force and the creditor tries to force you to pay the debt, you have the right not to fulfill the promise (debt).


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Where there are hard working people being harassed or threatened, I will be there. My site: http://anthonylemons.blogspot.com
Avoid these Agencies: http://www.budhibbs.com/coll_to_avoid_list.htm
Contact any government official here: http://www.congress.org/congressorg/home/ Contact any State Attorney General: http://www.naag.org/
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Send message to eleroo
Sub: #2
Replied on 10-29-2007, 12:05 PM
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This is good information to have. Thanks for the post.

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Send message to Anthony Lemons
Sub: #3
Replied on 10-31-2007, 11:39 AM
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yup

__________________
Where there are hard working people being harassed or threatened, I will be there. My site: http://anthonylemons.blogspot.com
Avoid these Agencies: http://www.budhibbs.com/coll_to_avoid_list.htm
Contact any government official here: http://www.congress.org/congressorg/home/ Contact any State Attorney General: http://www.naag.org/
Federal Trade Commission: http://www.ftc.gov/

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Send message to a1sundevilsfan2
Sub: #4
Replied on 11-01-2007, 07:51 AM
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It is indeed good information!!

However, a question arises when it comes to CC. If its an open account, how in the heck can you get your state courts to see it that way? Here in Arizona they are considered written...

Anonymous
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Sub: #5
Replied on 11-01-2007, 07:56 AM
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Where did you get this info from?

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Send message to Anthony Lemons
Sub: #6
Replied on 11-01-2007, 11:27 AM
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Come to my site. On the side and in the latest article is a link to this 'Statute of Limitation'.

__________________
Where there are hard working people being harassed or threatened, I will be there. My site: http://anthonylemons.blogspot.com
Avoid these Agencies: http://www.budhibbs.com/coll_to_avoid_list.htm
Contact any government official here: http://www.congress.org/congressorg/home/ Contact any State Attorney General: http://www.naag.org/
Federal Trade Commission: http://www.ftc.gov/



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Send message to tsacgiv
Sub: #7
Replied on 11-06-2007, 12:03 PM
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FANTASTIC INFORMATION ANTHONY LEMONS.

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Send message to FYI
Sub: #8
Replied on 11-06-2007, 01:27 PM
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Nice post! Very nice indeed. Good job.



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Send message to FloridaRon
Sub: #9
Replied on 11-06-2007, 01:55 PM
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Yes, thanks so much. I wasn't sure of the difference between written contract and promissory note. You certainly helped clear that up for me.

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Send message to HANKYSPANKY42
Sub: #10
Replied on 11-07-2007, 12:03 AM
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Anthony --you the man!!!!! you are so helpful to others' here with your accurate info keep it up!!!!!!




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