Does anyone know how long a credit card or collection company can come after you before they stop?

Question

I've heard that after so many years, depending on the state you live in, you can get rid of your debt with out paying anything. Basically i'm trying to find away to get my debt cleared. It's been over 7 years for some of the issues.

Answer 1

There are two different types of SOL (statute of limitations)
There is the collecting SOL and there is the reporting SOL.

For credit cards the reporting SOL starts from the first time you became 30 days late and never brought the account current leading to the charge off. The SOL runs for 7 years from that date. It is a violation to re-age a debt and report longer than the 7 years.

The length of time for the collecting SOL depends on your states SOL statutes. In some states the SOL starts from the first time you were 30 days late and never brought the account current leading to the charge off. In other states the SOL starts from the last action - the last time a payment or charge was made on the account.
Keep in mind that in some states, making a partial payment can reset the collecting SOL. Doing that when you are past the collecting SOL would leave you open for them to legally sue you.

A card company or a collection agency/junk debt buyer can "try" to collect forever. They cannot re-age the debt and they cannot legally sue on a time barred debt (Though many collection agencies/junk debt buyers manage to try to do both)

You need to find out what the SOL is for your state.

If you are out of SOL on the accounts, send the collectors a debt validation letter. Do not sign the letter, initial it or just type your name. Send the letter certified mail return receipt.

If they are reporting to the credit bureaus and it has passed the 7 year mark or they are reporting inaccurately, when you receive the green card back from the collection agency, send a dispute to the credit bureaus.

If you receive a response from the collection agency, or after 35 days have passed from when they signed the green card, whichever comes first, (AND you are out of SOL) send the collection agency a SOL letter.

You would effectively be binding the collectors hands which would keep them from legally trying to collect or harrass you.

If they do continue to violate, file complaints with the BBB, FTC, your states AG and their states AG. If they continue to violate after that, sue them.

Click on my profile and follow some of the links. I have links to the FDCPA where you can learn if the collection agency is violating your rights in their collection attempts. There is also a link to the FCRA where you can learn if the collection agency or the original creditor is violating your rights in the way they are reporting.

Answer 2

The 7 or 10 year limit is a myth. They can and will continue to hound you until you pay or settle. Sometimes, if it is a small debt, they will give up and forget about you, but it will stay on your credit report until they decide to stop reporting it. Credit card companies sell bad debts to collection agencies which re-report it as a new debt. Often those collection agencies, after a period of time, will re-sell the debts to another collection agency and the process starts all over.

The best way to get them to stop is to pay. After all, you incurred the debt, right? I recommend you call and offer to settle. The collection agency paid pennies on the dollar for the debt and I've seen them settle for as little as half the original debt.

Whatever you do, do not agree to pay any fees, interest, etc. Those are all markups and pure profit for the collection agency. If you make a deal to settle, get it in writing.

Good luck.

Answer 3

You can send a credit card company/collections agency a cease and desist letter and then by law (the Fair Debt Collection Practices Act) then are only able to contact you via mail. But they can still contact you. But the debt will be forever attached to your social security number/credit report even if the company isn't "coming after you" for it, unless you file bankruptcy and the debt is included in the judgement. The 7-10 year thing is how long a bankruptcy stays on your credit report for.

As far as the actual debt goes, they will turn you over to collections, and then collections will turn it over to a lawyer and sue you for it. If you fail to appear or fail to give just cause as to why you don't owe the money, you will lose the lawsuit and the judgement will probably give the collections agency to garnish your wages until it is paid off. Every time your social security number pops up, whoever's looking at your record will know the full extent of what you owe. The best thing is to just settle it and pay it off.

That's why people have life insurance for their final expenses and debts. Debts follow you til you're dead, and then when you're dead, they fall to your spouse or children's responsibility. Think of credit card companies or other debt collectors as henchmen in the Mob - They don't care WHO they get the money from, or your situation. They WANT their MONEY.

Answer 4

Generally they'll stop after 7 years, but it's not illegal for them to still go after you. There are companies out there that buy those expired debts and try to collect purely because most people don't realize after 7 years the damage is done and paying it off will generally not do you any good.

To get them to stop you have to write a letter to them *clearly* stating that you have no intent of repaying any debt. According to the Fair Debt Collections Practices Act they MUST stop all collection attempts. If they do not you are entitled to $1,000 in compensation.

Good luck.

Answer 5

7 years

Answer 6

I am a debt collector. After the collection agency 'appears' to have given up on you, they will SELL your debt to a law firm like the one I work for, then the law firm will sue you. Once the law firm sues you, they can get a judgment against you, and that means liens on any property you own or might ever own. A judgment also gives the law firm the ability to garnish your wages and bank accounts. I am currently suing people who thought they had out-waited the collection agencies. Please clear up your debt before it gets turned over to a lawyer. Once you have a judgment against you, you will then owe the principal amount of the credit card balance, plus the maximum interest allowed in the small print of your credit card agreement, plus attorney fees, plus all of the court costs. I've seen small credit card balances of just $1000 turn into $5000 to $6000 in debt. Your best bet is to make a payment arrangement with the collection agency, even just a small payment will keep them from selling your account to someone like me. You could also file bankruptcy, or try going to a credit union and take out a loan to pay off the credit cards; you would probably get a lower interest amount, and smaller monthly payments. Credit unions are not as picky about good credit as banks are.

Answer 7

I think they can pretty much come after you until you settle with the credit card company or declare bankruptcy. If it's a collection agency calling you tell them you can't pay the full amount. Chances are they will be willing to take 50% of what you owe vs. 0%.

Answer 8

confident. the sequence corporation does no longer understand that the expenses weren't made with the help of between the approved person, nor did they alter the mailing handle for the charges. the actuality that a police record replaced into started out, yet never accompanied by way of isn't a solid sign which you meant for anybody interior the case to be prosecuted for fraud. you have truthfully gotten copies of no longer in simple terms the statements, yet they could have additionally been able to arise with a replica of the verify or money made on the account itself (which might provide you a acceptance and handle of a individual). they could have comfortably been able to get those in 2008, yet no longer now in 2010. with the intention to report it as fraud you could desire to have a accomplished police record which you will have despatched to the credit card corporation and that they could have despatched you countless varieties to fill out too. provided that none of this replaced into finished, they are assuming you're all passing the dollar on who charged it up. while you're in simple terms a signer on the cardboard, you ought to not could desire to hassle, yet while they positioned you on the account itself, then confident, they won't in simple terms come when you for the soundness, yet additionally positioned it on your credit record besides.

Answer 9

Technically, it's 7 years from the last time they reported to your credit report. It could drag out for 15 years.

Answer 10

Why would you spend so much time trying to figure out how to avoid being honest andpaying your bill, instead of going over your budget and working out a way to pay off your debts. It doesn't matter how long you go without paying your bills - they are still due until your honest and decent and take care of your responsibilities. People like you cost EVERY household in the US a MINIMUM of 300.00 a year in increased rates on everything from finance charges to higher service fees for utilities, goods, etc.
Your bills don't go away just because you're not honest and don't pay them.

If you feel your situation doesnt allow you to pay off your responsibilities in a decent amount of time, get a 2nd job, or a 3rd (I've done it!) and be a man and pay your bills.