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  1. #1
    Join Date
    Aug 2008
    Posts
    2

    Default Does the Statute of Limitations Restart when the Debt is Sold to a Third Party

    My question involves collection proceedings in the State of: PA
    I was recently sued by a junk debt buyer for old credit card debts I believe are passed the SOL of 4 years. The plaintiff was granted a continuance because they could not produce documents related to chain of ownership or an original contract or a history of activity. During the hearing the subject of the SOL came up and the judge stated that the SOL is reset when the debt is sold to a third party and that there was case law on the subject. I don't believe this is correct. Can anyone cite case law in PA that demonstrates the SOL is not reset when a debt is sold to a third party.

  2. #2
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,633

    Default Re: Does the Statute of Limitations Restart when the Debt is Sold to a Third Party

    A change of ownership of a debt (the creditor selling the debt to a successor creditor) does not affect the statute of limitations. Ask the judge to identify the case.

  3. #3
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: Does the Statute of Limitations Restart when the Debt is Sold to a Third Party

    Agree with Aaron. The selling/transfer of a debt from original creditor to a debt collector or debt collector to debt collector does not restart the SOL. If it did, the SOL may never elapse. Some debt collection agencies will try to argue that it does but it does not.

    The only action that restarts the SOL in Pa. is payment on the debt.
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  4. #4
    Join Date
    Jul 2008
    Posts
    853

    Default Re: Does the Statute of Limitations Restart when the Debt is Sold to a Third Party

    If that were the case, I could own two companies, and sell old debts between the two to reset the SOL. I could sue someone for a debt hundreds of years old.

    Let me guess, this judge was a small claims judge, right? Small claims has become notoriously anti-consumer these last few years.

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