Old Debt & the Statute of Limitations

Consumers are often plagued by debt collectors collecting old debts. These old debts are sold to secondary creditors. These secondary creditors-collectors are governed by the Fair Debt Collection Practices Act (FDCPA). In Minnesota, because these debts are based on a contract between the consumer and the original creditor, to properly succeed a lawsuit to collect these old debts must be brought within six years from the time of default or reaffirmation of the debt.  However, The statute of limitations maybe less than six years. Some credit card companies are governed by the laws of another state, which may have a statute of limitations that is less than six (6) years. For example, Chase, Bank of America and Discover all provide that Delaware law applies.  Delaware has a three (3) year statute of limitations.  

If you reside in Minnesota, never pay anything toward an old debt that is older than six years!  When presented to courts as defenses, the statute of limitations prevents creditors from obtaining judgments for these old debts. After seven years, one hundred and eighty days, these old debts should not even appear on a consumer’s credit report because they are considered obsolete. A debt collector who is governed by the FDCPA may violate the Act if a debt collector sues or threatens to sue on an old debt which is not collectable because of the six year statute of limitations.

The information discussed above is not well known or understood by consumers. Typically, consumers do not talk to other consumers about their financial problems. People may discuss their divorces and how good their lawyers are, but they are reluctant to tell others about their debts and the attorneys who help them. To learn more about secondary creditors and what you can do to stop abusive debt collectors from collecting old debt, please contact William Michelson or find a lawyer in your state to help you.

Once a consumer retains a lawyer and a debt collector who is governed by the FDCPA knows it, that debt collector may contact only the lawyer and not the consumer. The client-lawyer relationship ends the unwanted intrusions on a consumer’s life by the debt collector. If you live in Minnesota, let me be the lawyer who helps you deal with your creditors and debt collectors who are trying to collect old debt. Please contact me if you would like my legal representation.