statue of limitations on credit card debt?

Question

I had a credit card in georgia that I defaulted on in april of 2003. Recently I agreed to a settlement on this account of 460.41, I had five days to pay this and during that time I was hospitalized. I wrote the company telling them this and ask for a extension because of this. I have not heard from them I do not want to just send them a check of 461.00 without an updated letter of settlement agreement. Have I reset the statue of limitations by doing this and have I opened myself up to a chance of now being sued for the whole amount. what once was a 500.00 bill has now added up to 1500.00 in collection fees any advise on how to handle this.

Answer 1

Here's the SOL: "Open account; implied promise or undertaking: 4 years, (OCGA 9-3-25). NOTE: Payment, unaccompanied by a writing acknowledging the debt, does not stopped the statute. Therefore, the statutory period runs from the date of default, not the date of last payment."

If you haven't heard back from the collection agency within 2 weeks of your letter, send them another letter, certified, return receipt. Briefly explain that you missed the deadline due to illness but you would like to settle the account as previously agreed. Indicate that upon receipt of their written confirmation extending the settlement, you will send payment.

Chances are they will be glad to take the money instead of taking you to court.

Answer 2

The above comments are good, but I have to point out two things. 1. Your credit card agreement probably says which state's law will goven the contract, and if it does, the issue of the SOL may be governed by that State, not by Georgia. 2. Your settlement agreement might state the consequences of a missed payment--it might say that if a payment is overdue or if the entire agreed amount is not paid off on time, the entire orginal debt becomes due immediately. You need to read that agreement, and also your credit card contract.

Answer 3

I dont know what the statute of limitations is in your state, you should find out. the SOL's runs from the date of last activity on the account, ie. last payment or last charge. Just contact them tell them what happenned, they will probably be happy to get the money any money. They are accepting 30% for a reason, they may not have a case against you also collection agencies can't sue people, law firms do.

Answer 4

You admitted responsibility for the debt by signing the agreement and might have to pay the entire amount if they take you to court ,but I don't think you reset the Statue of Limitations.

My advice......Get proof of your hospital stay and send it to them with a request for a new settlement agreement. Don't sign/return it to them until you have the check ready to send with it.

Good Luck

Answer 5

your best bet would be to call them.
If you have the old letter with the settlement, ask them if you could fax it to them and have them update it.
Make a copy of a money order and fax that as well so that they know you have the money and that you are ready to settle THAT DAY....
I dont think it could hurt.
My sister had an account with capital one
she neglected it
and kept running into crisis after crisis
(both real and imagined)
and finally
they took her to court and garnished her wages (she lives in indiana)
She pays them about $200.00 per paycheck.
She owed them 5k and they were willing to settle for 3500.
After court that 5k turned into $7500 with court costs and attorney's fees...and now they are unwilling to settle and the court awarded the credit card company EVERY penny.
she will be paying on this for at least the next 2 - 3 years....
I know everything is different
but I would think it would be better to be proactive rather than reactive.
If possible when you fax the letter, attach a copy of your hospital discharge form so that they know you aren't making this up.
You would be surprised how many people LIE about stuff like that
GOOD LUCK

Answer 6

Debt laws vary from state to state however normally you have to make a payment on an old debt in order to reset the statue of limitations. You may have to reestablish a settlement agreement with them which they should be eager to do. The statue of limitations on debts varies from 7 to 10 years depending on the state that you live in.

Answer 7

My advice would be call the collection company and tell them you wrote the letter and did not hear anything back form them. They have to reply within 30 days of receiving the letter.

Answer 8

do not send them any money - as of 4/2007 it may be
past the statute of limitations - check your state on the website below. They obviously PURCHASED the debt
and just because they bought bad debt, you did not
authorize or agree to pay them, what signature of yours
do they have that says you agreed to pay them

creditinfocenter com

Answer 9

You haven't extended anything. You are open to suit as you haven't paid prior to your letter. The letter is not a contract or a promise to pay as the laws state. It's just an offer. Nothing legal about it.

To avoid collections, call them tomorrow AM.

Answer 10

statute.

edit: why all the thumbs down? how the hell do you even represent an abstract notion such as "limitations on credit card debt" in 3d form anyways? not even michaelangelo can represent that. pencilnecks!