I'm on collection and I don't understand the 7year rule...can some one explain in detail please?

Answer 1

The Fair Debt Collection Practices Act (FDCPA) does not place any limits on how long a collection agency may attempt to collect on a debt; it does prevent a debt collector from threatening to sue you to collect the debt if the statute of limitations has run. The statute of limitations - the time during which a lawsuit may be filed against the debtor regarding the debt - differs from state to state, and depends on what type of underlying transaction (i.e. a check, credit card debt, auto loan, etc.) gave rise to the debt; the seven year period refers only to how long a debt may be reported on your credit report. Check the laws in your state to determine the applicable statute of limitations for your particular debt. Although a debt collector may continue to try to collect on an old debt, even if the statute of limitations has run, a debt collector may not:

* Threaten to sue on the debt.
* Report the debt to a credit reporting agency if the date of delinquency is more than 7 years ago.
* Continue to collect on the debt after you request, in writing, that they "cease and desist" further collection activity.
* Continue to collect on the debt after you inform them, in writing, that you refuse to pay the debt.

Accounts that are placed for collection or are charged off can be reported for seven years from the date the account is placed for collection or charged off, however, that period of time cannot exceed seven years plus 180 days from the date of delinquency. If your account was then placed for collection in March of 2002, the account can be reported on your credit report until January 15, 2009 – seven years plus 180 days from the date of delinquency. This is to limit the amount of time negative information is reported in the event an account is not placed for collection or charged off in a timely manner.

Answer 2

The link below does a pretty good job in explaining this. I think you are referring to the 7-year credit reporting period. That begins on the day you became delinquent on the debt, and how long the debt can be reported on your credit history.

The Statute of Limitations is the time period a creditor must take legal action to collect on a debt. After that time runs out, they lose the right to sue you. That time begins on the date of the last transaction (charge or payment) to the account.

Answer 3

If you break a mirror, you get seven years bad luck. :-)