Advice on collections and statute of limitations - The Bills.com Blog
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Advice on collections and statute of limitations
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. #'s but I did tell the man that I would call back the following week to pay $$ on the accounts. In the mean time, I researched a littleon statutes of limitations. The accounts were from when I was young and went through a divorce, 1998, and from the state of FL. The following week, I did speak with the agency and paid the one bill that is not outside of the statutes of limitations. I told them that I was going to speak with someone about my other two accounts and call them back. My question is, did I restart the statute of limitations because I told them initially that I would "call and pay them some $$" ...
Answer: All debts fall off your credit report once the seven-year limit on reporting has passed. Keep in mind that 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 debt, especially since the collector failed to provide you with any specific information in these debt (i.e., account numbers). However, you must 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
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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.