Your One Stop Resource for Saving Money.
Advice on collections and statute of limitations - The Bills.com Blog
Bills.com Blog > Debthelp Questions > Collections and Statute of Limitations
Advice on collections and statute of limitations
Tuesday, Oct 16, 2007
Question: I saw a collection on my credit report, contacted the agency left a message and was called back. I was told when I that the agency had 3 collections in my name. I was not given acct. numbers but I did tell the man that I would call back the following week to pay $$ on the accounts. In the mean time, I researched a little on statutes of limitations. The accounts were from when I was young and went through a divorce, 1998, and from the state of FL. The following week, I did speak with the agency and paid the one bill that is not outside of the statutes of limitations. I told them that I was going to speak with someone about my other two accounts and call them back. My question is, did I restart the statute of limitations because I told them initially that I would "call and pay them some $$" ...
Answer: By federal law, all debts must be removed from a credit report after seven years (US Code Title 15, §1681c) and bankruptcies after ten. Remember that just because a debt is removed from a credit report that does not mean the statute of limitations has passed. Federal credit report laws and a state statute of limitations laws are separate and independent from each other.The seven years starts running from the date the account was charged off by the creditor, which generally means seven and a half years from the date of last payment. I encourage you to review your credit report carefully to make sure
that the dates of last payment being reported on these accounts are correct. Some creditors, especially debt purchasing firms, will report inaccurate charge-off dates to extend the amount of time an old account appears on your credit report. If you find any inaccurate information, you should dispute the credit report listing with the bureau in question. The Federal Trade Commission offers advice regarding the dispute of inaccurate credit report listings, available at www.ftc.gov
In Florida, the statute of limitations for filing a lawsuit to collect on a delinquent debt is four years. Generally speaking, the statute of limitations runs from the date of last activity, usually the date of last payment, on the account. Based on the information provided in your question, I do not believe that your statement would affect the statute of limitations in regard to this debt. Generally speaking, to affect the statute of limitations, a debtor must make a specific promise to pay; a vague statement such as "I'll call and pay some money," is not specific enough to change how the statute of limitations applies to these
In Florida, the statute of limitations for filing a lawsuit to collect on a delinquent debt is four years. Generally speaking, the statute of limitations runs from the date of last activity, usually the date of last payment, on the account. Based on the information provided in your question, I do not believe that your statement would affect the statute of limitations in regard to this debt. Generally speaking, to affect the statute of limitations, a debtor must make a specific promise to pay; a vague statement such as "I'll call and pay some money," is not specific enough to change how the statute of limitations applies to these
debt, especially since the collector failed to provide you with any specific information in these debt (i.e., account numbers).
Remember that the application of the statute of limitation is a matter to be decided by the court in case the creditor files a lawsuit against you to try to collect this debt. While I think it is unlikely that a collector would attempt to sue you on a debt this old, if you do receive any court documents related to either account, you should consult with an attorney in your area regarding the age of these debts and the applicability of the statute of limitations to your situation.
If you want a free debt consultation with one of Bill's approved debt help partners, click here: https://www.bills.com/debthelp/debt/. If you are struggling to pay your debts, you may want to consult with a professional debt resolution firm to discuss the options available to you.
To learn more about credit, credit scores, and credit reporting, I encourage you to visit the Bills.com Credit Solutions and Resources page at http://www.bills.com/credit-solutions/.
I hope the information provided helps you Find. Learn. Save!
Best,
Bill
www.bills.com
Remember that the application of the statute of limitation is a matter to be decided by the court in case the creditor files a lawsuit against you to try to collect this debt. While I think it is unlikely that a collector would attempt to sue you on a debt this old, if you do receive any court documents related to either account, you should consult with an attorney in your area regarding the age of these debts and the applicability of the statute of limitations to your situation.
If you want a free debt consultation with one of Bill's approved debt help partners, click here: https://www.bills.com/debthelp/debt/. If you are struggling to pay your debts, you may want to consult with a professional debt resolution firm to discuss the options available to you.
To learn more about credit, credit scores, and credit reporting, I encourage you to visit the Bills.com Credit Solutions and Resources page at http://www.bills.com/credit-solutions/.
I hope the information provided helps you Find. Learn. Save!
Best,
Bill
www.bills.com
Also, make sure to get a free financial health check-up with Bills IQ!
User Comments
Submit questions/comments about this post:
Bill has answered all sorts of questions and has been able to provide those in need of financial guidance with helpful and valuable advice and information on their specific financial area of interest. If you need specific guidance on any of the above mentioned financial areas, feel free to Ask Bill your financial questions and get better informed. Also, make sure to get a free financial health check-up with Bills IQ!
Information provided by Bills.com is for general informational purposes only and is not be
construed as legal, financial, bankruptcy, tax or other professional advice. Should you
require more detailed information or specific professional advice tailored to your situation you
should consult an attorney, financial planner or tax advisor.
While we believe all information provided by Bills.com to be accurate as of the date of its posting, we cannot ensure its accuracy. Use of this site and any information contained on or provided through this site is provided without any representations, warranties or guarantees. Bills.com is not responsible or liable for any decisions or actions anyone may take based on the information provided. Please see Terms of Use.
While we believe all information provided by Bills.com to be accurate as of the date of its posting, we cannot ensure its accuracy. Use of this site and any information contained on or provided through this site is provided without any representations, warranties or guarantees. Bills.com is not responsible or liable for any decisions or actions anyone may take based on the information provided. Please see Terms of Use.
© 2006 - 2009Bills.com LLC. All Rights Reserved.
1. Posted by Tom Prophet on Friday 7th December 2007 16:52
I live in maryland. I have 4 medical debts and two of them are on my credit report. The other two are over three years old. Can the collection agency still add the two that are over the statute of limitation law onto my credit rport? Should I deal with the two that are on the report? or pay them in full.
2. Posted by brookesabal on Friday 7th December 2007 17:10
Anything can stay on your credit report for up to 7 years. Statute of limiations does not relate to credit reporting, but rather the period of time over which a collector/ creditor can pursue a lawsuit against you from debts owed.
3. Posted by Bea on Monday 27th October 2008 09:51
I have old medical bills in collection and i called and made a payment plan, did I restart the statues of limitaion by that phone call?
4. Posted by Bill on Monday 27th October 2008 11:25
The statute resets if you make a payment on the account.
5. Posted by eli on Sunday 14th December 2008 17:09
I have recently received a collection notice in the state of kansas for a phone bill that is at least 5 or 6 years old from NCS. The original bill is from Sage telecom and I do not think we actually owe any money to this company. Both my husband and I have perfect credit but now I am worried they are really hurting my credit score. We have not heard anything regarding this debt for over 5 years and all of the sudden they are claiming we owe 200 dollars from a 50 dollar bill from 5 years ago or longer. This cant be legal. I also believe that the statute in kansas has expired. Please advise us on how to deal with this situation. Thanks.
6. Posted by Bill on Monday 15th December 2008 06:40
You should request, in writing, for them to validate the debt (send them a Debt Validation Form). This should help you establish if you really do owe the debt and if the statute of limitations has expired. Also, be sure to pull your credit report and see if it is listed on your credit. Good luck.
7. Posted by Angela on Thursday 2nd April 2009 12:57
I was called recently about an old debt owed at a hospital from back in 2002, now 7 years later I'm being called by people saying I owe from that. Would I still have to pay?, and What is the law that is listed under?
8. Posted by Bill on Thursday 2nd April 2009 16:27
That would fall under the Statute of Limitations. These statutes vary from state to state. To check for you state please visit http://www.bills.com/collection-laws/. What it basically means is that the creditor has a certain period of time to take action against non-payment of the debt you owe them. Once that time passes, you are not required to pay on that debt but, that does not stop the collector from trying to collect on it, it just means that if the creditor were to file a court case, the judge would easily dismiss the case based on the fact that the statute has expired.
9. Posted by Winston Perry on Thursday 12th November 2009 18:52
I have 3 medical debts dating back to jan 04 and 06, they all amount to 650 dollars, is there a limitation to how long they can keep harrassing me ?
10. Posted by Bill on Friday 13th November 2009 11:02
No, there is not a limit as to how long a creditor can continue to attempt to collect an unresolved debt. Please see Collections Advice to learn more about your rights.