Can collection agency restart the SOL

Submitted by Anonymous (not verified) on Wed, 06/02/2010 - 04:50
Forums
Credit repair

Hi,

I have a question about Statute of Limitations?

Can a collection agency start the SOL clock ticking again when it buys a debt? A new collection agency which has bought my debt declared that it opened an account on a debt in 2010. The debt was originally incurred in 2004. Since the SOL in my state is four years, doesn't that make the debt uncollectable?

Aaron

Hi Edgar,

The Statute of Limitations (SOL) is calculated from the date of last activity. This last activity can be the date of last payment, entered any payment agreement in regards to the account. a promise to pay, or acknowledged that you owe the debt. You will get this date from your credit report.

However, this date does not change if the debt is handed over, or sold off to a collection agency. Moreover, if the SOL on your debt has expired, the collection agency won't be able to win a lawsuit against you. However, this does not mean that the debt has become noncollectable. You are still liable to pay for the debt.

Thanks,

Aaron

Wed, 06/02/2010 - 06:58 Permalink
crorkz (not verified)

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Wed, 08/06/2014 - 03:26 Permalink