The first thing any consumer should do when hearing from a collector is to determine if the debt is time-barred. That is, did the statute of limitations expire on this debt. The statute of limitations, as we have blogged in the past, is the limit of time that the collector/creditor has to file a lawsuit in court seeking recovery. Each state’s statute is different, and some states provide that a payment on the debt can restart the statute. Thus, before you agree to pay the debt, your first task is to find out when the last payment was made on that account, and what your state’s statute of limitations is for that particular kind of debt.
09 May, 2018