Credit Card Debt Statute of Limitations
Author: credithelp
Joined: 23 Aug 2004
Posts: 69
Posted: Wed Feb 23, 2005 12:21 pm
Post subject: sol question
Ive read that the sol on credit card debt in virginia is 3 years, but ive also read that it is 6 years. Does anyone know which one is accurate?
A friend has a debt that is 3 and a half years old so i am curious.
***Nevermind, i found it***
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Author: Ira
SENIOR MEMBER (Member for 2 yrs.+)
Joined: 19 May 2003
Posts: 830
Location: NJ
Posted: Thu Feb 24, 2005 12:25 am
The statute of limitations (SOL) for a delinquent debt is the time limit for the creditor to file a lawsuit. This period starts when the debtor becomes delinquent. The fact that the SOL has "run" (expired) on a particular debt will not necessarily prevent a lawsuit from being filed (via a Summons And Complaint), but the defendant can have the suit dismissed on this basis.
The Statute Of Limitations only covers lawsuits, and SOL expiration does not affect other types of collection action or reporting of the account to credit bureaus. The creditor or collection agency may theoretically continue with letters and telephone calls forever (although third-party collectors are subject to the "cease and desist" provision of the Fair Debt Collection Practices Act.) However, they will generally put much less effort into collecting "Out-Of-Statute" debts, and may give up easily. Out-Of-Statute debts can still be reported to credit bureaus for the time limits specified in the Fair Credit Reporting Act.
Credit cards are generally considered Open Accounts. Auto loans and other installment agreements are Written Contracts. If there has already been a lawsuit resulting in a judgement, that judgement has a separate Statute Of Limitations.
http://www.cardreport.com/laws/statute-of-limitations.html
Do not let what you cannot do interfere with what you can do.
Ira
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Author: NightStar
Board Monitor
Joined: 07 Nov 2003
Posts: 2580
Location: Illinois
Posted: Thu Feb 24, 2005 8:32 am
Interesting seeing that - most states like you posted can continue dunning collection letters way after the SOL has expired. But while back I learned that California of all places is the exception. If the consumer is receiving collection letters there after the SOL expires, they can turn the company in to the attorney generals office for action.
SOL defeinse is only useful if the consumer appears in court to tell a judge that the SOL expired. Otherwise the judge will not check on that themselves to throw out a case.
The collection agencies are crossing state lines more now then they did before, each state has laws some requiring licensing for a collection agency to work in state. If they don't come in state, then usually they will hook up with an existing collection agency within the state.
Best Regards,
Pammila Phillis
Board Monitor
U.S. Citizens for Fair Credit Card Terms, Inc.
http://www.cardratings.com
501-663-0314 PH
501-663-0033 FX
View our latest credit card ratings!
Joined: 23 Aug 2004
Posts: 69
Posted: Wed Feb 23, 2005 12:21 pm
Post subject: sol question
Ive read that the sol on credit card debt in virginia is 3 years, but ive also read that it is 6 years. Does anyone know which one is accurate?
A friend has a debt that is 3 and a half years old so i am curious.
***Nevermind, i found it***
View our latest credit card ratings!
Author: Ira
SENIOR MEMBER (Member for 2 yrs.+)
Joined: 19 May 2003
Posts: 830
Location: NJ
Posted: Thu Feb 24, 2005 12:25 am
The statute of limitations (SOL) for a delinquent debt is the time limit for the creditor to file a lawsuit. This period starts when the debtor becomes delinquent. The fact that the SOL has "run" (expired) on a particular debt will not necessarily prevent a lawsuit from being filed (via a Summons And Complaint), but the defendant can have the suit dismissed on this basis.
The Statute Of Limitations only covers lawsuits, and SOL expiration does not affect other types of collection action or reporting of the account to credit bureaus. The creditor or collection agency may theoretically continue with letters and telephone calls forever (although third-party collectors are subject to the "cease and desist" provision of the Fair Debt Collection Practices Act.) However, they will generally put much less effort into collecting "Out-Of-Statute" debts, and may give up easily. Out-Of-Statute debts can still be reported to credit bureaus for the time limits specified in the Fair Credit Reporting Act.
Credit cards are generally considered Open Accounts. Auto loans and other installment agreements are Written Contracts. If there has already been a lawsuit resulting in a judgement, that judgement has a separate Statute Of Limitations.
http://www.cardreport.com/laws/statute-of-limitations.html
Do not let what you cannot do interfere with what you can do.
Ira
View our latest credit card ratings!
Author: NightStar
Board Monitor
Joined: 07 Nov 2003
Posts: 2580
Location: Illinois
Posted: Thu Feb 24, 2005 8:32 am
Interesting seeing that - most states like you posted can continue dunning collection letters way after the SOL has expired. But while back I learned that California of all places is the exception. If the consumer is receiving collection letters there after the SOL expires, they can turn the company in to the attorney generals office for action.
SOL defeinse is only useful if the consumer appears in court to tell a judge that the SOL expired. Otherwise the judge will not check on that themselves to throw out a case.
The collection agencies are crossing state lines more now then they did before, each state has laws some requiring licensing for a collection agency to work in state. If they don't come in state, then usually they will hook up with an existing collection agency within the state.
Best Regards,
Pammila Phillis
Board Monitor
U.S. Citizens for Fair Credit Card Terms, Inc.
http://www.cardratings.com
501-663-0314 PH
501-663-0033 FX
View our latest credit card ratings!
posted by CardRatings.com at 10:23 AM
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