Did you know that debt collectors only have a certain period of time in which they can collect on a consumer related debt; otherwise they are committing debt harassment? Speaking of which, if you are suffering from debt harassment in any manner, we can help you stop the pestering. That means if the debt collector does not pursue a lawsuit against you within the statute of limitations, the claim is time-barred. It is actually illegal for a debt collector to attempt to collect on a time-barred debt. The statute of limitations that applies to a debt is not the same thing as the amount of time that a creditor can report negative information on your credit report.
Typically speaking, negative information can remain on your credit report for up to seven years. In some cases, the statute of limitations to sue the debtor expires before the time period in which the negative information will disappear. Each state establishes its own statutes of limitations, so the statute typically varies from one state to another. There are often different statutes of limitations for different kinds of debts. For example, written contracts may comprise one statute of limitations. In many states, this time period is seven (7) years. However, some states have a statute of limitations for five (5) years, while others have a statute of limitations for ten (10) years.
This type of debt is often associated with a longer statute of limitations because the evidence tends to serve the test of time, such as a written contract that clearly spells out the terms of the debt/loan. Another statute of limitations often applies to debts that are based on oral contracts. The statute for these debts is often shorter, such as three (3) years for example. This allows the court to evaluate claims when the witnesses’ memories are more intact and the evidence is a whole lot fresher in their minds. There may also be different statutes of limitations for debts associated with promissory notes, such as automotive loans, home mortgages and other types of debts.
Revolving or open accounts such as credit card debts may have yet another timeline in which the debt collector must file suit. You need to be aware of the fact that the statute of limitations does not begin when the account is first established. The clock starts to tick when you take some action or inaction that provides the creditor with the right to sue. Missing payments or not paying the debt for months on end is such an action, or inaction.
If you feel that you are being treated unfairly by a creditor or collection agency, please contact us immediately. Legal Rights Advocates, Inc. is a consumer advocate law firm that focuses on consumer rights protection services across the Unites States. We have well over twenty-five (25) years of combined experience helping consumers that are experiencing Debt Collector Harassment, Social Security Disability issues, and a whole lot more. LRA is truly your consumer rights advocate. We take great pride in the fact that our job is to protect you from deceptive and or abusive debt collection practices.
LRA is an accredited member of the Better Business Bureau, and we have well over 500 Five Star Rating Reviews online from across the United States. Our goal is to assist you each and every step of the way regarding your rights for consumer protection. Please call us today for more information at 855-254-7841 or click here to visit our website. We look forward to working with you.
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