Charge Off and the Statute of Limitations

[Tenis4m]

A year before my husband and I got married I sent letters to all his debtors requesting to make arrangements to pay on his debt. There were a few that never responded. Most contacted me, arrangements were made and the debt paid. It has been 2 years now and recently a collection agency on behave of one of the creditors contacted my husband stating he needed to pay in full the amount of 2276.57. The original debt was charged off in Dec 2003. The vehicle was repossessed in Feb 2001. The 2007 credit report stated that the debt was to continue on record until August 2007. The collection company contacted him via letter on 10/22/07. We live in Maryland and I thought that the statued of limitations applied to this debt and would therfore, make it null for payment. Can you confirm? Does he need to pay? What steps are recommended?

[jk]

"charged off" is meaningless to the debtor. it is an accounting position within the creditors books and has nothing to do with the validity or collectability of a debt.

As to the SoL. I believe it to be 3 years (but not positive) but a SoL defense is an affirmative defense which means, you can still be sued and you MUST present this defense as required by your states court to use it as a defense.



There are tolling statutes in Maryland that lengthen the SoL in certain circumstances as well.

Was this loan written in Maryland?

Have you lived outisde of Maryland for any period of time?

I just happened to notice that contracts under seal have a 12 year SoL. Is this contract under seal?

[aaron]

Also, was a court judgment entered following the repossession, for money owed?

[Tenis4m]

Not sure what is meant by seal purchase.

He did make the agreement in Maryland and has not lived outside of Maryland.

It was a 3 year lease with the company. My husband says he turned the vehicle in to the company because he could afford it anymore. The company became argumentative with him and then claimed it as being a repossession. He was under the impression that he did not owe any money. No judgement was ever served or is on record.

[jk]

Not sure what is meant by seal purchase.

.

apparently youfolks have some unique practices back east where a seal stamped on a contract alters how it is handled in some aspects.


here is a link that gives a brief description

click on this