Can a creditor still demand payment after the statute of limitations has expired and do I have to pay?

Question

I opened a credit card account with Capital One about 9 years ago. I defaulted not too long after and the account of course was closed. The debt had been removed from my credit reports with the 4 major credit bureaus after the 7 year limitation (in Maryland). Last night I received a call from a collection agency trying to collect on this account. Can they still try to collect payment after all this time and more importantly, am I still obligated to pay?

Answer 1

They can attempt to collect as long as they want to but once the S.O.L. has expired they can not sue you in court.



Simply send them a certified return receipt requested letter stating that the debt is beyond the S.O.L. for collection and to cease and desist all communication with you.



Do not admit the debt is yours and do not sign the letter simply type your name.



That should put a end to it.

Answer 2

You are mixing up a few terms. The Statute of Limitations is the period of time a creditor can take legal action against you. In MD for a credit card debt this is only 3 years from the date of the last default. So if you have not made a payment or a signed promise to pay in the last 3 years they can attempt to sue you. But you can use this as an affirmative defense in court.



There is also period which is the Credit Reporting Period. This is the time when a debt can be listed on your credit report. This is 7 years from the date it was charged-off, which is about 7.5 years from the date of the first delinquency. After this time it can no longer legally be listed.



Now, they can attempt to collect the debt forever until it is paid. You can pay it if you want, but if you are beyond the SOL and Credit Reporting period you can basically tell them to go "pound sand". The best thing to do is send this company a Cease Communications letter through Certified Mail with Return Receipt. Just be sure not to sign it, only type your name. This is because you may all of the sudden find your signature put onto another form.

Answer 3

Technically, a debt collector can come after you forever for defaulted debt...however, once the statute of limitations is up...they've lost the power to successfully take legal action. Per the Fair Debt Collection Practices Act, you can send them a "cease communications" letter and that will be all that you need to do. Per this law they must cease collection activity.



Send the collection agency a letter via Certified Mail + Return Receipt (NOT regular mail) stating:



Per the Fair Debt Collection Practices Act, cease all communications with me about this alleged debt.



This letter has been mailed via Certified Mail with Return Receipt. Receipt of this letter is being officially time stamped. ==========================



* DO NOT sign your signature on any document that you mail to a debt collector. It could end up on a forged document that can be used against you. Simply type your full name.





If the debt collector calls back, tell them that you have officially sent a certified letter to them to cease communications with you per the Fair Debt Collection Practices Act. Don't let them scare/bully you into paying this ancient, time-barred debt with bogus threats of arrest or legal action...they can't do either...they are powerless over you.

Answer 4

the debt never goes away, the debt collector however has no tools other than calling or sending you letters to try and collect, they can't report it to the credit agencies. all they are doing is hoping you reaffirm the debt and then they can go after you as if the debt was new, just ignore them they will go away

Answer 5

Yes they can. The statute of limitations is the amount of time they have to pursue the debt via legal proceedings aka "sue you".

They can collect from now until everlasting, it just means you can't be sued over it anymore.

Answer 6

This is one of those companies that purchase defunct accounts and hound the people that they think are not aware of the statute. Next time they call, tell them not to call or contact you anymore and to go pound sand.

Answer 7

nope



make no more statemnts to anyone regarding this debt, and hang up the phone the next time anyone calls you on it... You risk restarting the clock all over again with this new collector....

Answer 8

The statute only governs how long they can REPORT you for the debt, you still owe it (plus the interest). Once the interest payments you owe get big enough to make it worth their while, they will report you for that, too, as a "new" debt.



You are only "obligated" to pay to the extent that I would be "obligated" to pay you back for money I borrowed from you 9 years ago and never paid...you'd still want your cash, right? Or would you just consider it a gift if I refused to pay it for long enough?