Credit Card Debt
Collection
Statute
Of Limitation - What You Should Know
Credit Card Debt Collection
By [http://ezinearticles.com/?expert=Delia_Galley]Delia
Galley- Credit Card Debt Collection -Each state has a
statute of limitations on old credit card debts. The
statute of limitations refers to the period after
which, creditors cannot sue you to collect the debt.
The length of time is calculated from your last
payment date or last activity date (this is when you
last used the card).
Refer to the
credit card debt collection [http://www.poorcreditgenie.com/answers.html]old
debts statute of limitations chart, which details the
statute of limitations by Oral Contracts, Promissory
Notes, Written Contracts and Open-Ended Accounts. Note
that the transient nature of state legislature
requires you to verify the statute of limitations
period with your State Attorney’s office. For more
information go to www.naag.org.
In the past 10 years, a growing trend has ensued,
where aggressive debt collectors buy old debt accounts
and actively pursue consumers to collect the debt,
even though the statute of limitations has past. They
purchase these accounts for pennies and hope that you
will pay up. Even if, you pay $1 on the account - they
make a good profit.
- Credit Card Debt Collection
This is a violation of the Fair Debt Collections
Practices Act. Some creditors even lie and say that
the statute of limitations starts from the day that
they purchased the debt account. These companies are
so bold that some of them will threaten to sue you and
in fact proceed with the court case – don’t give in.
Others will harass you day and night, use profanity or
promise to erase negative marks off your credit repot,
if you send in a minimal payment.
If you find yourself in this situation here are a
few tips on what to do:
Do not send in a payment - if the statute of
limitations is past in your state. Doing so, will make
your delinquency look recent. It will also give the
debt collectors the idea that you are an easy target
and they may attack you on other fronts.
Keep an eye on your credit report to make sure that
they are not reporting negative information about you.
Your old debt account should not be reflected on your
credit report since the statute of limitations is
past. If you find that they are reporting the
information, take corrective action immediately and
fix any errors.
- Ignore Credit Card Debt Collection?
If possible, ignore all contact with the debt
collection agency. Do not accept their phone calls. If
they send you notices in the mail, you will want to
keep these as proof of their harassment.
The Fair Debt Collection Practices Act indicates
that there are certain things that creditors cannot do
in their attempt to collect debt. Go to
www.poorcreditgenie.com/answers.html for a list in
plain speak. For a complete list, go to www.ftc.gov/bcp/conline/pubs/credit/fdc.htm.
Verify the statute of limitations information with
your State Attorney’s office and solicit further
advice on how to navigate your situation.
The author is the owner of the information-rich
website http://www.poorcreditgenie.com - a "Drudge
Report" of credit. The website offers free advice on
how to rebuild credit and manage debt. The site also
features numerous articles and news stories on credit
reports, credit cards and bankruptcy.
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