Statute of Limitations on Credit Card Debt

It is from the DOLA or date of last payment.

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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

Thank you for the information.

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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. Cease and desist them.

Does anyone have a good sample FOAD letter??

There are sample letters regarding expiration of SOL in the DIY tab on this forum.