Statute of Limitations is an Affirmative Defense

Hi Paul!

Thank you again for your help in the recent past. DIY credit repair can get pretty complicated. Your assistance has been a real help to me.

Here’s my puzzle of the day. I understand that there are statutes of limitiation for reporting of items on credit reports, generally seven years. I also understand that there are state statutes of limitation that limit the amount of time that a collector can collect through the courts, usually three or four years less than the limit on reporting.

But what exactly CAN collectors do after the SoL passes for collection of a debt?

I have credit card debt (in Florida) that was charged off six years ago, I understand that the SoL is 4 years, so the collector is not in much of a position of strength. What are his rights, and is there a point at which the debt is officially “forgiven”, or is it collectable forever, even after it stops reporting on my credit?

I appreciate your input and any advice you can give!

Best Wishes,
Lance

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Hello Lance,

A collector can attempt to collect a debt beyond the applicable statute of limitations period.  If the FDCPA is followed, the collector may call or send dunning letters in an attempt to persuade the consumer to pay a SOL expired debt.  The debt isn’t forgiven, but the SOL does become an affirmative defense to a lawsuit.  This defense needs to be raised in order to have the lawsuit dismissed.  I’m reminded of a June 3, 2006 article in the St. Petersburg Times titled “’Buyers’ give old debts new life” that highlights this problem:

Mark Tischhauser, a Tampa lawyer who has sued several debt buyers for allegedly violating debtor-protection laws, says such companies naturally resort to abusive tactics because their old, overworked accounts are so hard to crack.

Tischhauser worries about the unlevel playing field in court, where few debtors can afford an attorney and most are unaware of their rights. How many debtors know there is a statutory time limit on most debts — as little as four years in Florida? How many know that the only way to stop a buyer from getting a judgment on a time-expired debt is to raise the issue themselves in court?

Of the 90 people called to face a debt buyer in Courtroom 306 that January morning, only two apparently understood the value of a good legal defense.

Thanks for the questions and hope this helps.

Paul

This author is not an attorney and this information should not be considered legal advice.  Please consult an attorney for legal advice.

(source=sptimes.com/2006/06/03/Tampabay/_Buyers__give_old_deb.shtml)