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Information and advice on Statute of Limitations and collection calls - The Bills.com Blog
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Information and advice on Statute of Limitations and collection calls
Monday, Dec 31, 2007
Question: Someone is leaving messages at my mom's house saying I am being sued for an account I lost a few years ago. The statute of limitations for collection on a debt is 4 yrs. in Texas, and we have had no contact, yet my credit report shows acct. opened 01-2006, and reported for 09- 2007. I know this isn't true, so my question is: How do I find out what was my last date of contact, or last confirmation of debt?
Answer: In most states, the statute of limitations (SOL) begins running from the date you last made a payment on the account. This means that if you paid just a few dollars to a collector a couple of years ago, the running statute of limitations for that debt could have been reset from that point on. Also, keep in mind that the passage of the statute of limitations does not prevent a creditor from calling you to collect on the debt; it simply provides you an absolute defense in court if in case the creditor files a lawsuit. You can generally stop collection calls by sending a cease communication letter to the creditor. A new company purchasing your account cannot lengthen the time that the account can
appear on your credit report. Be aware though, many debt purchasers have been known to change the date of last activity on old accounts so that they appear on your credit report for a longer time.
If you determine that your state's statute of limitations for the collection of debts has expired, it is unlikely that the creditor will succeed in their attempt to sue you to enforce the debt. Passing of the statute of limitations does not mean that a creditor cannot sue you, although if a lawsuit is filed, you should have an absolute defense against it. If you respond to the lawsuit stating that the statute of limitations has passed, the judge should easily dismiss the case. In addition, if the court believes that the creditor filed suit despite knowing that the statute of limitations
If you determine that your state's statute of limitations for the collection of debts has expired, it is unlikely that the creditor will succeed in their attempt to sue you to enforce the debt. Passing of the statute of limitations does not mean that a creditor cannot sue you, although if a lawsuit is filed, you should have an absolute defense against it. If you respond to the lawsuit stating that the statute of limitations has passed, the judge should easily dismiss the case. In addition, if the court believes that the creditor filed suit despite knowing that the statute of limitations
had expired, the court may sanction the creditor for its actions.
I suspect that the account in question might have been passed or sold from one debt collection agency to another. You will need to trace it back to the original creditor. You may also need to check you bank records to obtain payment details that you made to that account. If you find any false information on your credit report, you should dispute the listings with the credit bureaus. The Federal Trade Commission offers a helpful guide to disputing credit listings.
To find out more about credit, credit scoring, and credit reports, I encourage you to visit the Bills.com Credit Resources page.
I wish you the best of luck in resolving your debts, and hope the information I have provided will help you Find. Learn. Save.
Best,
Bill
www.bills.com
I suspect that the account in question might have been passed or sold from one debt collection agency to another. You will need to trace it back to the original creditor. You may also need to check you bank records to obtain payment details that you made to that account. If you find any false information on your credit report, you should dispute the listings with the credit bureaus. The Federal Trade Commission offers a helpful guide to disputing credit listings.
To find out more about credit, credit scoring, and credit reports, I encourage you to visit the Bills.com Credit Resources page.
I wish you the best of luck in resolving your debts, and hope the information I have provided will help you Find. Learn. Save.
Best,
Bill
www.bills.com
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