Does a Judgement on a Debt Start the Clock Over Again
- Finance
- Watchlists
- My Portfolio
- Cryptocurrencies
- Yahoo Finance Plus
- Screeners
- Markets
- Options: Highest Open InterestOptions: Highest Open Interest
- Options: Highest Implied VolatilityOptions: Highest Implied Volatility
-
- News
- Personal Finance
- Videos
- Influencers with Andy SerwerInfluencers with Andy Serwer
- Yahoo Finance All Markets SummitYahoo Finance All Markets Summit
- America: Back in BusinessAmerica: Back in Business
-
- Yahoo U
- Industries
- Tech
- Contact Us
-
S&P Futures
-
Dow Futures
-
Nasdaq Futures
-
Russell 2000 Futures
-
Crude Oil
-
Gold
-
Silver
-
EUR/USD
-
10-Yr Bond
-
Vix
-
GBP/USD
-
USD/JPY
-
BTC-USD
-
CMC Crypto 200
-
FTSE 100
-
Nikkei 225
Yahoo Finance is in Davos! Get the latest updates here
Can a Debt Collector Restart the Clock on My Old Debt?
You have a very pleasant phone call with a debt collector. The person begs you to send in a just a small sum, say $10, to settle the payment and promises to never bother you again. Suddenly, you get a new bill with the date of the collection account reset to the current date. Is it legal?
Yes, most likely.
"You send in that $10, and that starts the statute of limitations all over again," said Margot Saunders, counsel at the National Consumer Law Center. "Their promise is not enforceable."
The statute of limitations on debt — how long a collector can sue you over a debt — varies by state. But that ticking clock can reset from the moment you pay part of it, or even if you say the wrong thing over the phone.
In some states, if debt collector calls the consumer and asks, "Do you admit that you owe this debt and you're just refusing to pay it?" and the consumer says "Yes, I can't pay it, but I agree I owe it." That can count as a reaffirmation of the debt, which in some states restarts the statute all over again.
What should a consumer say?
"'I don't agree I owe it,'" said Saunders. "There's no reason to ever have a friendly conversation with a debt collector. You don't need to be rude, but you also don't need to give them any information, whatsoever."
One of our readers commenting on our site may have been caught in such a technicality:
I have a collection on an account from 2010. It has been dated at 2022 by the debt collection company. This is illegal or re-aging, isn't it? What can I do? I live in Alabama and 6 years is the max from original date of the contract.
What Does It Mean for Your Credit Report?
If you're looking at a collection account on a credit report, the date may mean a couple of things, said John C. Health, a credit expert and attorney for Lexington Law, a Credit.com partner. It could indicate the date the account was first reported to that debt collector (which may not have anything to do with the statute of limitations), or the new date could reflect any new payment you made. A collection account can remain on your credit report for 7 years plus 180 days from the date of your last payment on the original account.
We're not exactly sure what date our commenter is referring to — the last payment or the date of the contract — so it is a question best answered by an attorney.
"The statute of limitations will usually vary depending on whether the account is considered a contract, negotiable instrument or an account. State law will govern, so this reader will need to consult local counsel for help," said consumer attorney Troy Doucet of Doucet & Associates Co. in Dublin, Ohio.
In some states, the debt contract runs from the last payment, in others, from the date of default, Saunders said. It's a very state-specific question in terms of timing, what state law applies, when the last payment was made, and what kind of contract.
There's also something else to consider, Heath said.
"They may not be accurate dates," Heath wrote in an email to Credit.com. "You will want to focus on the date of last payment to determine when the statute of limitations begins." Ideally, you have that date in your own records. If you believe the date is inaccurate, you can dispute it with the credit reporting agency where you got the report with the error on it. (You can read more about disputing credit report errors here.)
To get a good handle on your situation, start by getting your credit reports and credit scores. Free annual credit reports are available from Equifax, Experian and TransUnion – and you can get two truly free credit scores, updated monthly, from Credit.com.
More from Credit.com
-
What Does FICO Stand For? What is a FICO Score?
-
Does Credit Repair Work? Can Credit Repair Companies Help?
-
How to Fix Your Credit
-
-
AdCharacters That Stunned Fans After Being Replaced
When a TV show decides to replace an actor, the fans are usually not too happy. Here's our list of 10 most shocking cast replacements
-
J.P. Morgan Says Buy These 3 Beaten-Down Stocks for Over 90% Upside Potential
Last week, the S&P 500 finished Friday's session with a rally that gave the index a small gain of 0.15% for the day. It was a good thing, too, since the index flirted with a net-20% loss during the session. That's bear market territory, the kind of market move that will further spook investors after a springtime of headwinds. Inflation is running at 40-year high levels, Q1 showed a net economic contraction, Russia's war on Ukraine promises to further damage supplies and prices in the food, cooki
-
Exclusive-Bolsonaro fires Petrobras CEO who warned of diesel crisis
(Reuters) -Brazil's right-wing president Jair Bolsonaro fired the chief executive of oil producer Petrobras - the second in two months - after the company refused to sell fuels at a discount to consumers warning it would lead to diesel shortages. Bolsonaro also called for the election of a new board, according to a statement released close to midnight local time on Monday by the state-controlled company, opening the way to a full executive management shake-up. José Mauro Ferreira Coelho is the third Petrobras CEO fired by Bolsonaro over fuel prices.
-
-
Ad15 Vehicles That Can Run Forever
These Cars Have No Problem Getting Past 250,000 Miles - Is Yours on the List?
-
3 Deeply Discounted Stocks You'll Wish You Bought on the Dip
Since the curtains opened on 2022, the iconic Dow Jones Industrial Average, benchmark S&P 500, and growth-focused Nasdaq Composite, have respective fallen by 14%, 18%, and 27%. Losing more than a quarter of its value has pushed the Nasdaq firmly into a bear market. Although a tumbling stock market can be scary and tug on investors' emotions, big declines have always represented a buying opportunity.
-
Snap Falls After Cutting Forecast, Shock Spreads to Rivals
(Bloomberg) -- Snap Inc. cut its revenue and profit forecasts below the low end of its previous guidance, sending shares plunging as much as 31% and pushing other social media stocks down.Most Read from BloombergBroadcom in Talks to Acquire Cloud Company VMwareStocks Climb in Risk-On Day While Bonds Decline: Markets WrapBiden Misspeaks on Taiwan, Says US Military Would InterveneBiden's Latest Taiwan Gaffe Stokes Tensions With BeijingRussian Diplomat Quits in Rare Public Protest Over War in Ukrai
-
-
AdIt's Hard To Believe These Planes Are Real
The 20 Most Unnecessary Planes Of All Time
-
How Russia made its ruble the world's top-performing currency
The Russian ruble has emerged as the best-performing currency in 2022, despite wide-ranging sanctions imposed for its invasion of Ukraine. How did the Russian currency make a dramatic recovery from its record low of 143 rubles to the dollar on March 7? The rally, experts say, is largely artificial, the result of capital controls imposed by Moscow in the wake of Western sanctions.
-
Why Nordic American Tankers Shares Fell 21.3% Today
Shares of oil tanker stock Nordic American Tankers (NYSE: NAT) fell as much as 21.3% in trading today after the company gave the market an update on operations. In a press release before the market opened, Nordic American Tankers' management said that they will announce first-quarter 2022 results before the market opens on May 31, 2022. Shares of Nordic American Tankers are up about 70% from their lows before Russia invaded Ukraine, which was a big driver of recent demand.
-
AdThe Most Talented Rock Bands In History
Prepare yourself to a ride of nostalgia, as we review some of the bestAmerican bands of all time
-
Nvidia: Why Investors Should Temper Expectations Ahead of Earnings
Over the last two years, Nvidia (NVDA) has made a habit of delivering "beat and raise" earnings reports. With the chip giant reporting F1Q21's financials after the close on Wednesday, May 25, are investors in for another treat? Not according to Susquehanna's Christopher Rolland. "Unlike recent quarters," said the 5-star analyst, "we believe any significant beat and raise may be capped by Gaming headwinds." So, what are these headwinds constraining Nvidia's biggest breadwinner? Well for one, reta
-
Why Upstart Stock Was Falling Again Today
On an otherwise good day for financial stocks and the markets generally, shares of Upstart (NASDAQ: UPST), a fintech lending platform based on artificial intelligence (AI), were falling today, and were down around 7.2% as of 3:40 p.m. ET. On Friday, Wedbush analyst David Chiaverini, who already had an underperform rating on Upstart, lowered his price target even further, from $20 to $15. Chiaverini cited a Kroll rating of a recent Upstart securitization, or rather a lack thereof, as indicating Upstart's class B and C notes were showing increased delinquencies and credit deterioration.
-
-
These 2 Oversold Stocks Are Poised for a Rebound, Say Analysts
The last few months, with the exception of some short bullish trading runs, have been brutal for the stock market. The NASDAQ has already entered bear-market territory, with a loss of ~26% so far this year, and the S&P 500 is near the edge, with a year-to-date loss of ~17%. But investors should remember: even in a bear market, there are going to be opportunities for the risk-friendly. This leads us to the oversold stocks, and their potential to rebound to investors' benefit. Oversold stocks are
-
AdCost-saving Stone Crusher
50-1000T/H Crushers for Mining, Quarry, Construction. Fixed & Mobile Type. Export to 130+ Countries. 30+ years of Experience, Reliable Quality.
Source: https://finance.yahoo.com/news/debt-collector-restart-clock-old-110009261.html
0 Response to "Does a Judgement on a Debt Start the Clock Over Again"
Post a Comment