A debt collectior has initiated proceedings on a debt that is past the statute of limitations. Please help!?

Question

I know that technically, they can't sue me for a debt that is past the statute of limitations, but I have also heard that if I acknolwedge the debt, then it can become "active" again. I can't afford a lawyer. What do I do? Can anyone help me draft a letter that will let them know the debt is past the statute of limitations, but doesn't acknowledge the debt? I called my county clerk and he advised that I try to settle it before it gets to court. I live in Bloomington, Monroe County, Indiana. Please help!

Answer 1

Tell the collections company that you dont acknowledge the debt, tell them its past SOL and threaten to counter sue them for. If this is 8 years old, the SOL is 99.99% past in your state. Check your state's SOL. Every state has it differently. Dont acknoweldge nor pay. If you are summoned to the court, go there and present your case calmly. The judge will toss the case anyways. If you are served, tell the collections to drop the case immediately or else!

Here is an example letter for the SOL past due.

http://www.fair-debt-collection.com/Disp...

Note this applies to unsecured debt like credit card, mortgage, charge cards and auto loans. Student loans, child support and IRS tax leins are exempt from such SOL limitations.

Answer 2

If this collection agency has filed suit on a debt that is out of statute, you have an "affirmative defense" against judgement. The rules of civil procedure for your court will determine how your answer must be filed, but you'll want to include the state statute for the SOL. You might even quote the statute itself to further strengthen your position.

If they've filed suit against you, I would not worry about sending any letters to the creditor. Best to argue your point in your answer to the court and the hearing...if it gets that far.

Also, each state has it's own laws for resetting the SOL. Some, like California do not allow resetting once the account has been charged off. Unfortunately I do not know how it works in Indiana off the top of my head, but you might want to research it.

You might try contacting an NACA attorney in your area. Filing a lawsuit on a time barred debt is a violation of the FDCPA and you might find someone to take the case on a contingency, since they could simply bill the creditor for legal fees if they win.

You might also visit CreditBoards.com, as there are great resources for state and federal laws, how to file, answer and argue lawsuits as well as an excellent forum where you can get help from experienced people. This is of course, 100% free.

Answer 3

Well many have given you the answers you need.  If this debt is truly beyond your states SOL and you know this for sure, then here is a sample letter to send to the creditor.  If they know it is time barred debt, then they won't even bother to file court papers, only make you think they will which is also a violation of the FDCPA

Today's Date

Your Name

Your Address

Collector's Name

Collector's Address

RE: [insert account number or name of account or name of debt]:

Dear [insert collector's name or company name],

This letter is in response to your [letter dated xx-xx-2005] (copy enclosed) or [phone call on xx-xx-2008], concerning the collection of the above referenced [account or date].

I do not believe I owe what you say I owe therefore I dispute this debt. I am well aware of my rights under the Fair Debt Collection Practices Act (FDCPA) and my state laws so I hope to save both of us a great deal of time by letting you know that not only do I dispute the validity of this debt, I have also checked with my State Attorney General and verified that the Statute of Limitations for enforcing this type of debt through the courts in (insert your state or the state in which the contract was signed) has expired. Therefore, should you decide to pursue this matter in court I intend to inform the court of my dispute of this debt and that the "statute of limitations" has expired.

This letter is your formal notification that I consider this matter closed and demand that you, or anyone affiliated with your company, stop contacting me regarding this or any other matter except to advise me that your debt collection efforts are being terminated or that you or the creditor are taking specific actions allowed by the FDCPA or my state laws.

Be advised that I consider any contact not in accordance with the Fair Debt Collection Practices Act a serious violation of the law and will immediately report any violations to my State Attorney General, to the Federal Trade Commission and, if necessary, take whatever legal action is necessary to protect myself. Be advised that I tape record all phone calls and violations of the FDCPA can result in you or your company being personally fined up to $1,000 per incident.

(Sign above name)

Printed Name

Hope this answers your question

LEGAL DISCLAIMER:  The advice contained herein is for informational purposes only.  It is not to be construed as Legal Counsel nor Legal Advice.

Answer 4

why don't you pay this off so other people don't have to pay off your debt????

Answer 5

If it's past the SOL, contact the FTC toll free @ 1-877-382-4357

Answer 6

Assuming the debt is brand-new (which is to say that you're within the first 30 days of collections), write a letter requesting "validation of the debt."

The Fair Debt Collection Practices Act (FDCPA) says that they HAVE to provide proof of the debt if you request it within 30 days from the time of the first demand letter.

You'll know it's a demand letter because on that letter will be some fine print that encompasses what is known as a Notice of Important Rights.  In that disclaimer, your right to challenge the validity of the debt is spelled out.

The Federal Trade Commission and your Attorney General are responsible for policing FDCPA violations, so cc copies of your request for proof of debt to them, so that the collection agency KNOWS you aren't f**king around.

By getting the FTC and the AG involved, you're virtually guaranteed they'll comply with your request, even if you're ordering docs past that 30 days.  Once you receive proof of debt, let them know that the documents they sent you outline a debt that is past statute and, as such, uncollectible.  

Have them cancel the debt, notify the original creditor if different from the ones who are collecting from you and get it in writing so that, just in case they try to resell the debt elsewhere, you already have written proof that it's an invalid debt.

Consumers such as yourself have the FDCPA to protect you, so definitely invoke it.  Collection agencies KNOW to tread very lightly with people who know what the FDCPA is all about.  Failure to abide by the FDCPA can cost collection agencies thousands of dollars.   In the past, I think it was like $1,000.00 per infraction, but now it might be more.

If you speak with them, watch what you say because phone conversations are oftentimes recorded "for quality purposes and  training purposes."  Admit NOTHING over the phone.  If you're worried, write to them and let them know ONLY to communicate with you in writing.

If after receiving your letter telling them not to call you, they call you anyway, that's a violation.  Keep GREAT records of every communication you have with them in case it does go to court.  This way, you can counter-sue for damages related to their FDCPA violations.

One final thing.  If you pay so much as a penny towards your debt, the clock on the statute of limitations starts all over again, which means that, if the SOL was seven years and it expired, but afterwards, you make a five dollar payment, you're not only acknowledging validity of the debt, but you're resetting the clock to allow them to collect for another seven years AT MINIMUM.

If from there, they obtain a judgment against you, you can add another TWENTY YEARS on top of that!!!!   So don't pay a DIME before you resolve the statute of limitations matter!!!!!!!!!

Here's a basic form letter for you:

http://www.oskie.com/free-letter/debt-va...