New Debt Collection Practices: The Good, the Bad, and the Opinions Forbes
When Tennessee Representative Steve Cohen sat down with some other governmental friends and came up with some proposed consumer-friendly changes to the Fair Debt Collections Practices Act (FDCPA — the main legislative document that proscribes the way debt collectors can interact with consumers), I’m sure he thought it was a great idea. And for a politician looking to make some political hay during economic lean times, there’s nothing better than alleging to protect consumers from the collections industry.
It’s a tough time to be a regular Joe with too much credit card debt and too much month at the end of your money. That house that seemed like a great idea in 2007 has now fallen so low in value that it’s part of a buy-one-get-one free program at most participating 7-11s. (This might just apply only to my own house.) Everyone is now playing Six Degrees of Out-of-Work Kevin Bacon (what’s the last thing you’ve seen him in? And how many of your friends or acquaintances are now currently out of a job? You win!), what with unemployment on a steady increase. Basically, everyone owes and no one has money, and the collections industry — never a darling — is often on the wrong end of news stories.
The Today Show's Money 911 on the topic of "Time Barred Debts"
If you receive a letter from a collection agency regarding a really old debt, you can ignore it (if it has already dropped off your credit report ...
Which state would I go by for a time barred debt?
I got a car back in 2001 in California and shortly after that I moved to Washington St. The car never did get registered in Washington but it did get repo'ed there in June of 2002. So my question is, which state would I go by for the law of a time barred debt? Would it be California where I signed the contract, or Washington because that's where it was repo'ed?
Thank you for your time and answers.
The lender would have to take you to court in the State you live in so it would go by Washington State laws.
Can someone get sued on a time-barred debt in California?
The statue of limitations in CA is 4 years for credit card debt ... I'm trying to find out if it is legal to sue in the state after the four years is up? I know other states allow this but I can't find anything whether California allows it?
I just want to add that I'm not being sued at the moment. I'm curious about the time-barred thing because I've seen a lot of people ask it but there's never a definitive answer concerning California.
In most states, the lawsuit can be filed... however, whether it will succeed is a different matter altogether. Depending on the situation, even the act of filing it could be held as a frivelous claim and result in sanctions to the attorney who filed it.
Statute of Limitation and/or being barred by time is an affirmative defense. This means that its an answer to the lawsuit, and generally, its an absolute defense. The proper procedure would be to file an answer (or have an attorney file an answer) and then raise the defense of the statute of limitations. After filing an answer, then file a motion to dismiss based on that.
Sounds like you need to consult with an attorney licensed to practice in California. For a referral, contact your local or california bar association.
Can I be sued again on a Time Barred Debt?
I was sued by a debt collector who filed the lawsuit during the last month of the 5 year SOL in Illinois. After three court appearances, the plaintiff motioned to dismiss without prejudice, and that was granted. The debt has now passed the SOL, can they file another suit against me?
If it is passed the statue of limitation they could still sue and get a default judgement if you don't show up. If they do sue make sure that you appear and tell the judge that it is passed the statue of limitations and it should be thrown out.
What is the length of time you can have a debt before it will be time-barred in Las Vegas, NV?
How long must your debt be deliquent before it is time-barred in Las Vegas, NV and when does that period start? After your first missed payment? All the info. you could give me would be GREATLY appreciated! Thanks!
Depends on the statute of limitations, I have posted a link where you can look up your State and see.
http://www.bcsalliance.com/index.html
would a mortgage fall under the term a "time-barred" debt?
Had an illegal foreclosure back in 97' & want to know if there is a statute of limitations
Had an illegal foreclosure in 97' which was thrown out of court.Is there a statute of limitations on how long they have to correct it?
Time Barred Debt? Website that has state by state info?
Does anyone have a web site that has state by state info for "Time barred Debt" Or Statute of Limitations?
http://www.cardreport.com/laws/statute-of-limitations.html
I checked my credit report and they're is a time barred debt that is listed? Can I have this error corrected?
I have a debt from 2001 that I didn't pay. It went to collections and is on my credit report two times! I live in California, isn't this a time barred debt and the statute of limitations should have expired? Its four years in California before the statute runs out.
Also, this debt is listed twice and they both have different estimated removal dates of 2013 and 2014. What actions can I take to correct this? I am paying off my other debts right now and don't want to pay this one if the statute has run out.
Thanks Big Red. I am having transunion investigate both items on my report. Hopefully these items will be removed.
Credit Reporting Companies have their own time frames for keeping items on ones credit report, regardless of the SOL of your state.
Here are the guidlines:
Inquiries - Two years.
Late Payments - Seven years from the month in which the late payment was due. If there are multiple late payments in one account item, then they will each expire individually.
Charge-Offs - Seven years. The time runs from the date of the delinquency, plus 180 days. If a payment was due on an account on January 1, 2000, but the debtor defaulted, and never caught up to become current again, and the account is eventually declared a charge-off by the creditor, then the seven year reporting time limit starts running on July 1, 2000, with the item scheduled to expire from his/her credit reports on July 1, 2007.
Collection Accounts - Seven years. The running of this time limit is the same as with charge-offs. The date of delinquency still refers to the original delinquency with the original creditor, regardless of when the collection agency began working the debt. This includes debts that have been bought by a collection agency. Collection agencies cannot legitimately "re-set the clock."
Lawsuits And Judgements - Seven years or until the governing statute of limitations has expired, whichever is longer.
Bankruptcy (Chapter 7) - Ten years (from the date of entry of the order for relief or the date of adjudication.
Bankruptcy (Chapter 13) - Seven years.
Paid Tax Liens - Seven years from the date of payment.
Notice that lawsuits and judgements are governed by your states SOL. California is 10 yrs and renewable untill paid.
Now those debts that are listed might have been re-dated by the collection agencies which is illegal under the FDCPA as the following:'
RE-DATING OF THE DEBT IN VIOLATION OF
[CITE: 15USC1681s-2] § 623. Responsibilities of furnishers of information to consumer reporting agencies
You would have to check your credit reports to see if they indeed re-dated the debts, if so, then you can dispute it with the CRA's and have them removed. You can also bring suit against the creditor under 15USC1681n
Hope this answer is of help to you
LEGAL DISCLAIMER: The answer provided here is intended for informational purposes only. It is not intended nor presumed to be legal counsel or professional legal advice
Can a collection agency report on my credit on a time barred debt?
In anther post I asked about time barred debts and found out that it is two years after the stop clock on my debt. How long can the collection agency report this on my credit every month? Will it come off when the repo drops off early next year? If they can continue to report this on my credit, how can I stop them and/or remove it from my credit report? Also, is it true that if the collection agency is showing the balance owed can the orginal bank show my balance as well?
Thank you!!
Slimick is correct about the time the debt can be reported.
To answer the other part of your question, if the collection company is reporting the balance then no the original lender must show a $0 balance since they no longer own the debt.
Does anyone know the statue of limitations for time barred debt in California?? I can't seem to find it?
Written Contracts: 4 years
Oral Contracts: 2 years
Promissory Notes: 4 years
Open Accounts (Including Credit Cards): 4 years
How do I go about clearing my credit report of time barred debts?
It seems that I have some old debts that are long past the SOL but are still on my credit report. What do I do to fix it?
Derogatory items age off your credit report 7-1/2 years from the date of first deficiency. If there are any items beyond the reporting period, send the credit bureau a dispute indicating the item is beyond the reporting period.
This is not the same as the Statute of Limitations (SOL), the timeframe for bringing lawsuit. This varies from state to state and typically starts from the date of last activity or last payment. Making a payment or in some cases acknowledging the debt, restarts the SOL.
Items beyond the SOL can still show on your credit report and there is no legitimate way to remove them until the age off.
Kinda strange... usually they fall off after 7 years from last activity.
Check your credit report and see what the last activity date was on those old debts. It might be that you got a call from a collection agency and admitted that they were yours and they "activated" the account again before it was SOL....
time barred debt - News
|
Breaking Up the Citi It stumbled again in the 1990s, the last time the real-estate market went south. Earlier this decade, regulators barred it from major acquisitions until it |
|
Democrats Propose Measure to Limit Credit-Card Abuses Companies including American Express Co., Discover Financial Services and Citigroup Inc. would be barred from imposing excessive fees and be required to |
|
Consumer Borrowing in 2009 Will Mean Making a Plan - L.A. Watts Times (subscription) Consumer Borrowing in 2009 Will Mean Making a Plan These high levels of debt, combined with a global credit crunch, have tightened up lending to all but the best customers — and they’re having trouble too. |
|
Bankruptcy protection - CBC.ca Bankruptcy protection As soon as the receiver has been appointed, the debtor's assets are frozen and the debtor, its officers and directors are barred from exercising any control |
|
Obama and the Politics of the Stimulus - Washington Post Obama and the Politics of the Stimulus All will spend money recouping debt or tryng to streamline processes, with most companies using it to further outsource sending most of the benefits |
