Surprising Fact Debt Collectors Won’t Tell You: Your Debt Expires!
The Fair Debt Collection Practices Act covers your rights as a consumer in debt. However, this is not your only weapon in your anti bill collector arsenal. Debt collectors can only come after you for a set time period, until your debt expires. It sounds too good to be true, but it isn’t.
The Statue of Limitations is the law that allows your debt to expire and it varies from state-to-state. If you utilize some of the evasive tactics that this blog provides for you, then you can literally dodge your creditors left and right until the debt you owe expires.
The trouble with bill collectors is that even if your debt has legally expired, they won’t inform you about it as they are not legally required to do so. They will still try to collect the already expired debt, which you are not legally obligated to pay. If you make the mistake of paying them after your debt has expired, then they can legally keep the payment.
Check the Statute of Limitations
You can find a list of the Statue of Limitation laws by state here: http://www.carreonandassociates.com/articles/statute.htm. The Statute of Limitations is listed in years and is based on where the judgment was issued (it has nothing to do with where you live now). If you are being pursued by a creditor and have a judgment against you, the Statute of Limitations varies wildly. For example, if the judgment was issued in Georgia, your creditors can only come after you for 7 years but if you are unfortunate enough to live in Ohio you’ll have to wait a whopping 21 years until you’re in the clear.
Inform the Debt Collector That Your Debt Has Expired
Don’t bother informing the bill collector over the phone that the debt has expired. Send a cease and desist letter to the company informing them of the date of expiration (just add your state’s Statute of Limitations in years to the date of the judgment). Cite your state’s Statute of Limitations within the letter for reference. A letter informs the bill collector that if they do not cease their actions immediately, you will take legal action against them. Legal action against a bill collector is cheap and easy: you just file a form with your local small claims court. This article on How to Sue Bill Collectors will start you on the right path to legal action against abusive collectors.
State-by-state Statute of Limitations laws are one of the most powerful tools you have to fight collection agencies. It allows for a criminal lawsuit (harassment) to be brought up against a creditor and it nullifies and voids a person’s debt entirely if your debt is legally past-due. You won’t have to be harassed while you wait for your debt to expire:
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