How long does a collection agency have to legitimately collect a debt?

is there a specific statute of limitations on debt collecting? And if this time limit is up and a collection agency is calling and/or sending letters , how do you go about stopping this and getting it removed from your credit report? I live in Oregon.

How long does a collection agency have to legitimately collect a debt?
Yes, they have to follow 2 sets of SOL. One is your states SOL which is the time frame they have to take the claim to court, the other is the time frame for reporting to the CRA's





If the deb is beyond your state SOL, they can still demand payment, but can take no legal action. You would have to send them a certified letter stating the debt is beyond your states SOL and to cease communications.





Oregon's SOL is 6 years on all debts. but the collection agency must report the TRUE date of delinquency (the date the SOL clock starts running) as defined by the FDCPA to whit:





As of December 29, 1997 the reporting period runs 7 ½ years (7 years plus 180 days) from the date (month and year) of the last delinquency (known as "last missed payment:).


So, regardless of how long a creditor waits to charge off, sell or transfer a debt, they must report the true and correct "delinquent or last missed payment" date (month and year) that preceded the creditor's action.





Running of Reporting Period - Section 605 [15 U.S.C. § 1681c]





Remember this, if you send a payment in, then the clock resets the date for the SOL.





Some creditors will re-date a debt to keep it on ones credit report, this is ILLEGAL as per 15USC1681s-2] § 623. Responsibilities of furnishers of information to consumer reporting agencies








Here are some links to help you, they are from the FTC and none of those sites that provide info all the while promoting their pay for services.





http://www.ftc.gov/bcp/conline/pubs/aler...


Information on time barred debts.





http://www.ftc.gov/gettingcredit/


What you need to know about your credit.





http://www.ftc.gov/bcp/conline/pubs/cred...


Credit and your consumer rights.





I invite you to join the following Yahoo group "DontGetRippedOff" dedicated to helping those in financial trouble, Here you will find information to help you with debt collection agencies.


http://finance.groups.yahoo.com/group/do...





LEGAL DISCLAIMER: The advice contained herein is for informational purposes only. It is not to be construed as Legal Counsel nor Legal Advice.
Reply:Everyone in debt should check the statute of limitation on each balance. There are some unscrupulous collectors who use old accounts (that you might not owe anymore), and keep the money.


It varies with each account, so check each one separately.


The laws might vary in each state. Find that out first.
Reply:Hi there!





1. A collection agency can collect a debt that it owns for as long as they want. The important question is, has the debt passed the statute of limitations? Since this is often a legal question open to interpretation, it is often more than just saying that the statute of limitations (SOL) has passed. The reason I say this is because as a defense in court, the SOL is called an 'affirmative defense'. This means that in order for the defense to be valid, you must tell the court that you are using the defense (thus, affirming it). Think of it like being in a sword fight. The SOL is like your shield - unless you raise it up to protect you against the oncoming sword, it's going to impale you. That's how the SOL defense works.





2. You should check the Oregon statutes on debt collecting. Most states require that debt collectors be registered with some kind of permit or licenses. There are also rules that these collectors must follow. Does Oregon statues specifically prohibit debt collectors from trying to collect on debts that they know are time barred (that is, have passed the SOL)?





3. In your state, the SOL for open accounts and written accounts is the same, 6 years, so the argument about whether credit cards are open or written accounts is sort of moot. The SOL starts from the date of your last payment. Do you have the canceled check showing when you made your last payment? If you do, then you're in a good position. Also, you credit report, if the original debt is still there, will often list the date of your last payment too. If you know for sure the date of your last payment, send a debt validation letter (there's one here: http://overcomingyourdebt.blogspot.com) and tell them that the SOL has passed. Also ask them in your letter to stop calling you at work and/or at home. You might want to read up on the Fair Debt Collection Practice Act (FDCPA) -- a link to it is on that site that I mentioned before.





4. If this debt has been bought and sold dozens of times, it's possible that this collection agency doesn't know the exact age of the debt. 'Reminding them' with your letter would be a prudent move. Once they realize that it has passed and that you know about your legal rights, chances are they will probably give up on collecting.





5. Just because the SOL has expired, it doesn't mean you can't be sued, so if you do receive papers from the court, don't just assume you're protected by the SOL. It's not automatic. Remember, it's an affirmative defense which you must raise. Failure to raise it means that you will lose it.





6. Collection agencies have a right to put things on your credit report, and you can't get it removed simply because the SOL has tolled. If a debt is not validated in the first 30 days that you were contacted by this collection agency, they have the right to assume it is valid (validity does not mean liability - just because you don't request validation doesn't mean that you are liable). What you can do is dispute it with the credit report agencies. Best way to do this is online and to simply request that they validate the information. If it is over six years old, I bet that the collection agency doesn't have the necessary proof to link you to the debt. If it can't be verified accurately, it will be deleted. Collection agencies will often voluntarily delete things that they have no legal right to collect. It's possible that once you have informed them that the SOL has passed, they will delete the information -- that has happened to me in the past.





It's important that as this debt is resold and bought, that each time a new collector contacts you, make sure you send a debt validation letter. This puts a stop to collecting and technically should prevent them from adding negative items to your credit report.





EDIT: I forgot one important point...promises to pay and/or making a single payment, even for a tiny amount, will cause the statute of limitations to reset. Also, if you've left the state and returned, the time that you were gone probably causes the SOL to stop. So if you lived in Oregon for three years, and then moved to Texas for 3 and are not back in Oregon, the SOL would not have tolled. Not sure if that applies in your case, but I just thought it would be worth mentioning.





Good luck!
Reply:Try this site for specific information.


Much depends on what type of debt you have.





http://www.oregonlawhelp.org/OR/StateCha...

lilac