CC Statute of Limitations?

Question

Card had not been paid for almost 6 years. Collection place called and scared sister to death with law suits and got her to pay $201 to them. Then I figured out it sounded fishy and he wont stop calling threatening the DA, IRS etc... Now I have heard of cease and desist and the max years being 3, but did she ruin that by sending the $201?

Answer 1

She might want to offer a settlement at this point, since the SOL has been reset.  If she can come up with a lump sum payment, offer 25% to settle the account in full.  Send the collector a letter making the offer and ask that an authorized agent of the collection agency sign and return a copy of the letter indicating acceptance of the offer.  Put lines at the bottom for signature, date, and print name.  Don't give the collector direct access to your bank account.

Answer 2

Sorry to say, but she most likely reset the SOL by making a payment.

However, she can still get them for violating the Fair Debt Collection Practices Act.  Collection agencies cannot threaten you with action they don't intend to or can legally take.  And they definitely can't imply that she's a criminal and tell her she'll go to jail.

If she reset the SOL, writing a 'Cease and Desist' letter may not be a wise choice.  While they do have to stop calling, you're probably going to force their hand to take further action to collect.  And with the SOL reset, they're in their legal right to get a judgment.

She should keep a log of every phone call, who she talked to and what was said.  So, if she does get sued, she can counter-sue the court of their violations of the FDCPA.

Answer 3

It depends on your state. Most, but not all states allow for the SOL to be reset.

*EDIT*

If the collection agency was using illegal tactics (like threatening criminal/IRS action) against her to receive payment, she MIGHT be able to use that to fight the resetting of the statute of limitations, but it would ultimately be up to the judge.

Answer 4

She sure did anytime you make a payment the S.O.L. starts all over again in most States.

I have posted a link in the source box so you can look up your State and check.