Statute of Limitations Explained
Each State has a Statute of Limitations in regards to collecting a debt. Meaning how long a collector has to LEGALLY collect the debt or simply use the legal system to help collect the debt. To use the courts and laws to file judgment against you. To try and get a judgment against you to go after your paycheck (garnish wages) or freeze your bank account with a judgment under their belt.
If this Statute of Limitations have run out well they are Shit out of Luck in trying to get a judgment against you. They may still try to collect the debt but if the Statute of Limitations have run dry they are going to have one hell of a time getting a dime out of you.
They cannot legally sue you, legally garnish your wages, legally freeze your bank account or anything they need the courts to help them with. They are all on their own so we say SCREW THEM the SOL is up move on.
Even if the Statute of limitations is up they are going to try and get the money out of you or threaten you anyways because they think you are stupid and don't know any better. That's why it is so important to know your state's laws in regards to debt collection.
If you do not know anything about your State's Statute of Limitations this is what collection agencies are hoping for.
This is another reason we made this website. To help consumers know their rights in regards to Third Party Collections and Lawsuits.
Now if you didn't know that a collection agency has a certain amount of years to use the legal system to collect a debt you know it now and we hope that your Statute of Limitations have run out and that they cannot use the legal system to get you to pay. That's what this is about. And we hope we can help every single consumer out there understand that they have rights when it comes to third party collection agencies.
Let's say that "Joe" got a letter from XXXX Company saying that he opened a credit card account back in 1998. Joe knows that he stopped paying on this bill back in 1999. It's the year 2007. Joe orders his credit report and sees that the last payment made was January of 1999. He checks his state's statute of limitations and it states 3 years. He knows that the Statute of Limitations has run out years ago and this company cannot use the legal system to collect so he send a debt validation letter (below) and just like that the Collection Agency leaves him alone.
Collection Agencies hate people who know their rights. They love to go after the people who are clueless. The people who panic and think just because they got a collection letter they will call and work out payment arrangements. It's sad because a lot of people do panic and call without knowing their rights under the FDCPA or State Statute of Limitations.
Debt Validation may help you as well if you are confused with your rights to request proper validation in regards to a collection agency attempting to collect a debt against you.