Statute of Limitation

[badson44]

I have an old credit card (capitol one) when I got it, it had a 400 credit limit. So I maxed it out , but I didn't go over the limit. I set up my bank account to pay 25$ per month several days before due date. I did this for a year. After a year I checked on the account and found out I now owed over 700 dollars. This is what happened, after I maxed out the card Capitol One solicited us to purchase some kind of protection plan which unrealizing took me over my credit card limit. No purchases were made. As I payed my 25$ monthly faithfully they were adding a 25$ over limit fee, I was getting hit with another fee (i forget what it was right now). I called and complained and they insisted I pay the full amount. Arrogant as I am I stopped paying, the bill is somewhere over 3000 and the account in collections for years. How many years before a Credit Card company can no longer collect this debt. It has gone to so many different collections agency's I lost track, I spoke to several in the past years and explained my position and would pay only the 400 plus the interest (on 400) since they were the cause of the over limit issue. They would never budge. What can I do it's been years since I talked to any collections agency. I am surprised I have not been in court on this...any suggestions.

[LawResearcherMissy]

How many years before a Credit Card company can no longer collect this debt.

They can continue collection activities til the cows come home, you die, or they go out of business.

However, depending on how long it has been since you last paid on the debt, you may raise expiration of the SOL - which is 3 - 15 years, depending on your state and how it views credit cards - as an affirmative defense.

[divemedic]

Furthermore, some states prohibit a CA from continuing to collect on a debt that is beyond SOL. Your conversations offering to pay part of the debt can in some states toll the SOL. Be careful.

Once the debt is beyond the SOL, you can always send them a letter telling them you refuse to pay the debt at all. Then the CA is not allowed to contact you any longer. This is very useful, especially if they have already put the trade on your credit report, or the debt is more than 7 years delinquent, because there is nothing left that they can do to you. Since they can't do anything to your credit report, the SOL protects you from any litigation, and the FDCPA states they can't contact you once you tell them in writing that you refuse to pay, you are in the clear.

[jk]

Furthermore, some states prohibit a CA from continuing to collect on a debt that is beyond SOL. Your conversations offering to pay part of the debt can in some states toll the SOL. Be careful.

.

Not only do they toll the running of the time but in some situtaions, they restart the time.

Once the debt is beyond the SOL, you can always send them a letter telling them you refuse to pay the debt at all. Then the CA is not allowed to contact you any longer.

they can sue if they do not beleive the SoL has run though.

This is very useful, especially if they have already put the trade on your credit report, or the debt is more than 7 years delinquent, because there is nothing left that they can do to you

well, since some states have up to a 15 year SoL, not sure where the 7 years means anything in that situation.

. Since they can't do anything to your credit report, the SOL protects you from any litigation, and the FDCPA states they can't contact you once you tell them in writing that you refuse to pay, you are in the clear.

if it were only so easy.



badson; this is the problem when you ignore the statement that prompts you to include the state this involves. There is no right answer with the info provided because the answer depends on what state this involves.

[divemedic]

they can sue if they do not beleive the SoL has run though.


well, since some states have up to a 15 year SoL, not sure where the 7 years means anything in that situation.

Sure they can sue. Then you use the SOL as a defense. They can sue you even if you never owed them any money. I could even sue YOU right now. It does not mean they, or I, will win.


The 7 years means that IF the SOL has run, not only do you have an affirmative defense, but they cannot place the collection on your credit report.

[jk]

Sure they can sue. Then you use the SOL as a defense. They can sue you even if you never owed them any money. I could even sue YOU right now. It does not mean they, or I, will win.


The 7 years means that IF the SOL has run, not only do you have an affirmative defense, but they cannot place the collection on your credit report.

I wasn't really trying to pick on your post. I more so wanted the OP to understand that without the germane state, they cannot get an accurate answer.

as to using the SoL as a defense; if it is not presented as a defense, the plaintiff can still win a judgement so it is important that it does get claimed as a defense, along with any other possible defenses.

[badson44]

Sorry I didn't include the State, it is FL... One more question how do I know for sure if the SOL has run out? Who would I check with. I don't see the CA being to helpful with that info... Any suggestions anyone. And it's ok pick on my post's they need picking on..

[jk]

there really is nobody to "check with". If you believe the SoL has run, you use it as a defense if sued. The courts will determine if the SoL has run.

Florida has a tolling statute so if you have left the state, the SoL has tolled for that period. Some states have statutes that effectively allow the SoL to continue to run and since you would have to be sued in your state of residence OR have a Florida judgment domesticated into your state of residence for them to be able to collect such, the new resident states laws come in to play and may have allowed the SoL of Florida to have expired.

That is one reason it is difficult to determine if an SoL has run.

So, with all of that. The credit reporting agencies can only report the debt for 7 1/2 years after it became delinquent. The SoL is either 4 or 5 years (depending on how Florida views credit cards. I don't know myself how they do). If it has been over 5 years since first delinquency (and you did nothing to restart the SoL), the debt is uncollectable in court. If it is over 7 1/2 years, the CRA's must drop it from your report.

If youare sued, you respond that the debt is beyond the SoL and move for a dismissal of the suit on those grounds. It may be dismissed at that point or the courts can allow the suit to continue if the plantiff believes they can show the SoL has not run. If they can;t, it gets dismissed. The biggest thing is to not do anything to restart the SoL.

[divemedic]

Florida cards are viewed as 4 years. There have been several recent cases that settled the matter.

[Betty3]

divemedic - I don't know about the SOL Fl. There seems to be some "disagreement" among the courts there. It doesn't seem they all consider 4 years for a credit card (unless it's a store card). The recent article below said it seems to be up to the judge/court. (some may consider 5 yrs - written contract) The case they refer to re 4 years is in Palm Beach County only. (I know the name of that case - it's PORTFOLIO RECOVERY ASSOCIATES, LLC, vs PAUL FERNANDES.)

http://cedolavincent.com/node/17