Credit card debt statute of limitation - What You Should Know

Each state has a statute of limitations on credit card debt. The limitation refers to the period after which, creditors can not sue to collect the debt. The time is calculated from the date of last payment or date of last activity (ie the last time you used the card .)

See the old law limits debt graph, which specifies the time in oral contracts, promissory notes, written contracts, and open-ended accounts. Note thatthe transient nature of the state legislature is required to check the status of the limitation period with the state attorney's office. For more information, visit http://www.naag.org.

In the past 10 years, a growing trend has emerged, where aggressive debt collectors buy old debt accounts and actively pursue consumers to collect the debt, even if the prescription is gone. They buy these accounts for pennies, and expect you to pay. Evenif you pay $ 1 to the account - make a good profit.

This is a violation of the Fair Debt Collection Practices Act Some creditors, even lie and say that the limitation runs from the day he bought the account. These businesses are so audacious that some of them in exchange for not suing and, indeed, go to the court case - not to harass others in day and night, use bad language or promiseto erase the negative signs of credit repot, if you send a minimum payment.

If you are in this situation, here are some tips on what to do:

Do not send a payment - if the recipe has passed in your state. In this way, make your eyes the recent crime. It will also give collectors the idea that you are an easy target and you can attack on other fronts.
Keep an eye on your credit report to ensure that they are not reporting negative information about you. Your old account should be reflected in the debt in your credit report due to the limitation is gone. If you find that information is being reported, to take immediate corrective action and correct the errors.
If possible, ignore all contact with the collection agency. Do not accept their calls. If you send communications by mail, you want to keep these as proof of harassment.
Fair> Debt Collection Practices Act indicates that there are some things that creditors can not do in their attempt to collect the debt. Http / / www.poorcreditgenie.com / answers.html Go to a list of plain talk. For a complete list, go to [http://www.ftc.gov/bcp/conline/pubs/credit/fdc.htm].
Check the statute of limitations of the information with the State Attorney's office and seek further advice on how to navigate the situation.