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 Posted: Mon Feb 04, 2008 12:28 pm Subject: Statute Of Limitations For Debts |
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I had come across this when asked by another member of WN. I figured I would share it openly for those who wanted a more clear definition. The link to article and the chart is below.
The statute of limitations (SOL) for a delinquent debt is the time limit for the creditor to file a lawsuit. This period starts when the debtor becomes delinquent. The fact that the SOL has "run" (expired) on a particular debt will not necessarily prevent a lawsuit from being filed (via a Summons And Complaint), but the defendant can have the suit dismissed on this basis.
The Statute Of Limitations only covers lawsuits, and SOL expiration does not affect other types of collection action or reporting of the account to credit bureaus. The creditor or collection agency may theoretically continue with letters and telephone calls forever (although third-party collectors are subject to the "cease and desist" provision of the Fair Debt Collection Practices Act.) However, they will generally put much less effort into collecting "Out-Of-Statute" debts, and may give up easily. Out-Of-Statute debts can still be reported to credit bureaus for the time limits specified in the Fair Credit Reporting Act.
Credit cards are generally considered Open Accounts. Auto loans and other installment agreements are Written Contracts.
Go to the link below for the chart.
cardreport.com/laws/statute-of-limitations.html
_________________
Brian C. Aber
Account Executive
HTDI Financial
877-877-4834 x704
www.QualityCreditRepair.BIZ
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brian
Joined: 31 Jan 2008
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| Posted: Tue Feb 05, 2008 6:06 pm Subject: |
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great post, thank you for the information, well put.
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jos82003
Joined: 18 Jan 2008
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| Posted: Fri Feb 08, 2008 4:16 am Subject: |
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bria, you have really done a great job by posting on the SOL. there are still a lot of people who do not properly know about it or are still a bit confused. your post will help them surely.
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laurel188
Joined: 16 Jan 2008
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Debtcc Points: 2507
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