Collection Debt Elimination, Credit Restoration and Wealth Creation

Every state has a statute of limitations (law of limits) on collection debt. It is law that mandates the legal time limit of when a debt can be collected.

Many consumers receive collection debt letters in the mail regarding accounts that have already been paid (no kidding) and/or the time limit to collect has expired. Junk debt buyers have names and account numbers of consumers who have paid a collection account even as far back as 10 years ago and they try to collect AGAIN. The trick for the debt collector is that the consumer most likely does not remember or has no documents of this account so they take the debt collectors word for it. This happens often. We heard this happen on the Dave Ramsey show the other day to a 75 yr old woman for $10,000. Long story short, this consumer has to fight to get the money back because she paid it to the collector under false pretenses. This is not an isolated incident. Debt collectors and collection agencies have no conscience.

Another scenario is that a debt collector will send you a letter to you if your name is similiar to someone else who HAS a collection debt and it may be a very old account that has expired under the guidelines of the SOL. The consumer questions it and the collector “convinces” them to pay. This is not even the consumers account but the collection agencies attempt to make it an “account” when it actually has another consumer name on it. Does this make sense?

THE MOST COMMON scenario is when the debt collector will send a letter that is 5-10 years old to collect. This falls under the statute depending on which state. The debt collector KNOWS that this is too old to collect on but they send it anyway because the consumer does not know their rights. The debt collector knows they legally don’t have any rights to collect but if the consumer does not know about the SOL then the consumer will start to pay the account. Instant profit for the debt collector.

If a certain amount of time passes and the consumer has not been able to pay the collection account, there is a time limit and the collection debt will expire under the SOL. The debt collector CANNOT collect on it. Please note that the SOL does not apply to all debts. The consumer has to check their state’s civil debt collection codes. You must not ignore the collection letters that are old. You can be sued. YOU MUST WRITE AN SOL LETTER.

We are adamant about not talking to debt collectors. They will trick you into making a payment or verbal agreement and that puts the account “live” and the collector lives for the dead to come alive with the SOL accounts.

Below is a statue of limitations SOL sample letter. Remember to always send certified mail return receipt. It is imperative to document all action for your records.

STATUTE OF LIMITATIONS LETTER
Today’s Date
Your Name
Your Address

Collector’s Name
Collector’s Address

RE: [insert account number or reference number]:

Dear [insert collector's name or collection agency name],

This letter is in response to your [letter dated xx-xx-200x] (copy enclosed) or [phone call on xx-xx-200x], concerning the collection of the above referenced [account #].

I do not believe I owe what you say I owe therefore I dispute this debt. I am well aware of my rights under the Fair Debt Collection Practices Act (FDCPA) and my state laws so I hope to save both of us a great deal of time by letting you know that not only do I dispute the validity of this debt, I have also checked with my State Attorney General and verified that the Statute of Limitations for enforcing this type of debt through the courts in (insert your state or the state in which the contract was signed) has expired. Therefore, should you decide to pursue this matter in court I intend to inform the court of my dispute of this debt and that the “statute of limitations” has expired.

This letter is your formal notification that I consider this matter closed and demand that you, or anyone affiliated with your company, stop contacting me regarding this or any other matter except to advise me that your debt collection efforts are being terminated.

Be advised that I consider any contact not in accordance with the Fair Debt Collection Practices Act a serious violation of the law and will immediately report any violations to my State Attorney General, to the Federal Trade Commission and, if necessary, take whatever legal action is necessary to protect myself.

(Signature here)
Your Printed Name

(END OF LETTER)

NEXT LEVEL CREDIT

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