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Author: Sergei Lemberg
When Does a Debt Expire?
![Long Overdue Debt]()
General Rule: Most states have a statute of limitations that sets a time for when a debt is no longer legally enforceable. However, in the technical sense, a debt never expires.
Did you get a call about a debt you haven’t paid in a long time? When this happens, you probably wonder, is this debt still valid? This is an important question as a person may not have planned to pay a debt that they forgot about long ago.
Once you incur a debt, it is your responsibility to pay it off in full. However, depending on certain factors, a debt may have reached the point where it is not legally enforceable. If a debt collector tries to collect on this type of unpaid debt you can ignore their requests.
However, in some instances, they may continue to harass you or try to deceive you into paying the debt. If this happens, you have the protection of the Fair Debt Collection Practices Act (FDCPA). The following sections will help you better understand how the law treats older debts.
Is There a Time When a Debt Is No Longer Enforceable?
While a debt never expires, you may reach a period where the debt is no longer enforceable. This happens when the statute of limitations expires. The statute of limitations generally expires when a certain period of time elapses without any activity on your account. If a debt collector sues you for a debt that is time-barred you can raise the statute of limitations as a defense.
The length of the statute of limitations depends on two related factors. The first is the state law that applies to your debt. This may be either the state you live in or the state law listed in the original credit agreement. Each state sets its length for the statute of limitations.
In addition, a state may have a different statute of limitations depending on the type of debt. For example, revolving accounts such as credit cards tend to have a shorter statute of limitations. However, written contracts, such as mortgages usually have a longer statute of limitations.
The different types of personal debts that may fall under a state’s statute of limitations include the following:
- Mortgages
- Medical bills
- Past due rent
- Credit cards
- Personal loans
- Student loans
- Car loans
There are other unique aspects to the statute of limitations in each state. For instance, some states will restart the statute of limitations if you make a payment after an unpaid debt initially expires. In addition, some states restart the statute of limitations if you acknowledge the debt. However, this is not consistent in every state.
Note: The statute of limitations applies to all debt owners, including the original creditor.
Dealing with Older Debts under the FDCPA
The FDCPA protects you from a debt collector trying to use certain tactics to collect on a time-barred debt. For instance, they cannot trick you into making a payment to restart the statute of limitations. They also cannot threaten or harass you over a debt they know is no longer legally enforceable.
While the statute of limitations protects you against all debt owners, the FDCPA applies only to third-party debt collectors.
What Can I Do If a Debt Collector Contacts Me About a Debt That Is Not Legally Enforceable?
If a debt collector is using abusive collection tactics for a time-barred debt, you can put a stop to it. Here are some options to consider:
- Address the Issue in Writing. Write to the debt collector and let them know how they are violating your rights. Since the debt is time-barred you can also include a cease-and-desist letter to end all communication.
- Report the Debt Collector to a Federal Agency. You can submit a general consumer complaint to the Consumer Financial Protection Bureau (CFPB). For FDCPA violations, you should also submit a complaint to the Federal Trade Commission (FTC).
- File a Lawsuit. If the previous options do not work, consider filing a lawsuit. A lawsuit can do two things: (1) put an end to the illegal violations; and (2) compensate you for any damages.
Conclusion
While a debt never expires, it’s important to understand your state’s statute of limitations. Knowing this information may save you thousands of dollars.
If your debt is not legally enforceable, do not allow a debt collector to harass you for a payment. Contact a consumer rights attorney to take action against a debt collector violating your rights.
Additional Resources
About the author:
Sergei Lemberg is a consumer rights attorney, practicing since 2006, whose practice focuses on consumer law, class actions and personal injury litigation. He is known for a United States Supreme Court case (Facebook v. Duguid) defending consumers from autodialers under the Telephone Consumer Protection Act of 1991 to send unsolicited text messages. He is also the author of Defanging Debt Collectors, a book that teaches consumers how to battle debt collectors and win.
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