Statute of Limitations on Credit Card Debt
Date: Mon, 06/28/2010 - 16:06
Statute of Limitations
Quote:
Originally Posted by SOAPLADY It is from the DOLA or date of last payment. |
So if the original creditors statute has run out, the collection agency can no longer collect?
Hi masaltz, When a credit account gets sold off to collection
Hi masaltz,
When a credit account gets sold off to collection agency that does not extend the time limit on the Statute of Limitations. The collection agency cannot change the Date of Last Activity (DOLA) when the debt is handed over to them for collections. This change in DOLA is called reaging, and this is illegal. If you think that the collection agnecy has changed the DOLA, you can file a complaint with the Federal Trade Commission, and your State Attorney General. You can also dispute this with the credit bureaus.
However, expiry of Statute of Limitations (SOL) does not mean that the collection agency cannot collect on the debt. They can still continue with thew collection process, but can't sue you for non payment of the debt.
Thanks
Thanks for the information
Thank you for the information.
Quote:
Originally Posted by lisawhite9 Hi masaltz, When a credit account gets sold off to collection agency that does not extend the time limit on the Statute of Limitations. The collection agency cannot change the Date of Last Activity (DOLA) when the debt is handed over to them for collections. This change in DOLA is called reaging, and this is illegal. If you think that the collection agnecy has changed the DOLA, you can file a complaint with the Federal Trade Commission, and your State Attorney General. You can also dispute this with the credit bureaus. However, expiry of Statute of Limitations (SOL) does not mean that the collection agency cannot collect on the debt. They can still continue with thew collection process, but can't sue you for non payment of the debt. Thanks |
Credit account is sold
So what is the best strategy to handle the collection agency with the debt that SOL has expired?
Simply send them a FOAD letter and tell them to pound sand. Cea
Simply send them a FOAD letter and tell them to pound sand. Cease and desist them.
There are sample letters regarding expiration of SOL in the DIY
There are sample letters regarding expiration of SOL in the DIY tab on this forum.