Lawsuits for Time-Barred Debts
The Fair Debt Collection Practices Act prohibits debt collectors from suing or even threatening to sue you for a time-barred debt, but that doesn't mean it won't happen. In February 2012, the Federal Trade Commission sued one large debt collector, Asset Acceptance, for violating this part of the FDCPA. As part of the settlement, Asset Acceptance now has include a "will not sue" notice in collection notices for debts that are past the statute of limitations.
If you happen to be sued for a time-barred debt, you can simply provide the court with proof that the statute of limitation has expired.
Don't ignore a lawsuit summons under the assumption that it will take
care of itself. The creditor or collector could obtain a default judgment against you and an order to garnish your wages if you don't pay the judgment.
Activity Allowed on Time-Barred Debt
Creditors and debt collectors can still collect time-barred debts. The law doesn't prevent them from doing that. The debt might even appear on your credit report if the credit reporting time limit hasn't expired. Most debts can appear on your credit report for seven years from the date it became delinquent.
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If the statute of limitations expires on a debt before that seven years is up, the account will remain on your credit report.
What You Can Do About Expired Debts