Did you know that a debt collection agency must follow state law when it comes to the statute of limitations for attempting to collect an outstanding credit card and personal loan balance? After the statute of limitations has expired on a consumer debt, a third party debt collector can still try to get you to pay by requesting money, but the bill collector can no longer file a lawsuit to garnishes wages that eventually resolves the delinquent debt.
It is not just about the money owed on a credit card or personal loan account. Many third party debt collectors continue to report negative consumer information about outstanding debts to each of the three major credit reporting agencies.
Under the Fair Debt Collection Practices Act (FDCPA), if the statute of limitations has run out on a consumer debt, debt collection agencies such as Medicredit can no longer report the delinquent credit card and personal loan accounts to Equifax, Experian, and/or Trans Union.
A Lawyer Should Draft a Statute of Limitations Letter
Passed by the United States Congress in September of 1977, the FDCPA grants consumers several protections against aggressive third party debt collectors. A debt collection agency like Medicredit cannot implement deceptive techniques in an attempt to get you to pay off an outstanding debt. An example of deception involves impersonating a government or a law enforcement agency.
The FDCPA also allows each state to establish time limits for the collection of delinquent consumer debts. By sending a notice to Medicredit that the statute of limitations has expired in your state, Medicredit can no longer file a lawsuit against you or report your credit history to a credit-reporting agency.
A licensed consumer protection letter should write the notice to ensure you cover all the legal bases. Your notice can also include language that a third party debt collector should stop communicating with you. A statute of limitations letter couple with a cease and desist request should be a letter written by an experienced FDCPA lawyer.
![Statute of Limitations Expired for Medicredit*]()
What Does a Sample Notice Look Like?
Every state defines the statute of limitations for attempting to collect outstanding credit card and personal loan balances. However, states do not explain how to write a legally binding notice.
You lawyer will probably follow a template like this:
To Whom It May Concern:
This letter is in response to your letter dated October 12, 2018 in regards to the above-referenced debt collection account number.
I have spoken with my state Attorney General’s office and confirmed the statute of limitations on this type of debt has expired. Therefore, if you choose to pursue this matter in court, I will be forced to show proof that the statute of limitations has expired.
Let this letter serve as notification that I do not wish to be contacted about this debt any further except to be notified that your agency will stop contacting me in any form. Any other communication regarding this debt will be taken as a violation of the Fair Debt Collection Practices Act.
Sincerely,
Your Name
Speak with an experienced consumer protection lawyer today to ensure you draft a statute of limitations notice that gets Medicredit off your back.
*Disclaimer: The content of this article serves only to provide information and should not be constructed as legal advice. If you file a claim against Medicredit or any other third-party collection agency, you may not be entitled to any compensation.
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