There are some debts that are affected by time. These time-barred debts are debts that are so old, they have reached a point at which a creditor or debt collector can no longer pursue legal action to collect balances owed. Depending on the state you reside in, the amount of time for these debts will vary. Most states impose a statute of limitation between 3-10 years.
Federal Regulations
The federal law dictates how debt collectors can collect on debts owed, including these time-barred debts. The Fair Debt Collection Practices Act defines a debt collector as any organization or individual that regularly collects on owed debts on the behalf of others. This includes lawyers. However, the FDCPA does not count the original creditors in this category, provided they are collecting their own debts. The FDCPA does allow debt collectors to continue trying to collect on owed debts as long as there is no mention or action toward a lawsuit for the collection of monies owed. In the event you are sued on a time-barred debt, you can have the case dismissed by presenting evidence to the judge that the debt is time-barred.
Stop the Contact
The debt collectors are still legally allowed to contact you while you still owe money to the original creditor, regardless of the statute of limitations. If you want to have a debt collector stop contacting you, you can write a letter and request they cease from calling you. As soon as the collection agency receives the letter (be sure to send it certified/return receipt), they can no longer get in touch with you except to confirm your request or to advise you that there will be another course of action taken to pursue the debt.
Work On Your Debts – Don't Ignore
If you do owe debts to creditors, it is advisable that you work to pay down the debts and not just ignore them. Allowing debts to reach a time-barred status, does not mean the debts will be forgiven or simply go away. They will, in fact, continue to ruin your credit worthiness and mar your credit history report. Since collectors can still attempt to collect on time-barred debts, you will likely face dealing with phone calls and correspondence for years to come. The best way to deal with debt is to acknowledge the reality of what you owe and work to renegotiate more reasonable terms that work for your finances and allow you to pay off your balance in full.