Corey Gray, CEO

How often do your clients ask you "Should I pay this debt off to get the mortgage?"

I cant even begin to tell you how many times my clients have unecessarily paid off a debt after the statute of limitations has passed only to find that the item now stays on his/her credit reports for another 7 years.This is unfortunate because the statute of limitations has been designed to stop legal action against debts that are too old according to the US Federal Government.

Keep in mind, I am not referring to the statute of limitations for credit reporting, this is the timeclock for debt collection!

There are many laws that govern debt collectors, to learn more visit:

http://expert-debt-advice.com/resources-debt-collection-laws.html

The statutes are different for different types of contracts and where you live. I have organized the types of contracts as well as the individual statutes for each state below.

Oral Contract: You agree to pay money loaned to you by someone or some company. This contract or agreement is verbal (i.e., no written contract, "handshake agreement" or "verbal agreement"). Verbal contracts are legal but tougher to prove in court.

Written Contract: You agree to pay on a loan under the terms written in a document, which you and your creditor have signed.

Promissory Note: You agree to pay on a loan via a written contract, just like the written contract. The difference between a promissory note and a regular written contract is that the scheduled payments and interest on the loan also is spelled out in the promissory note. A mortgage is an example of a promissory note.

Open-ended Accounts: Open-ended accounts are usually credit cards, department store, and gas cards. They are revolving lines of credit, which means that you use credit and pay a monthly payment that usually ranges from 2% to 5% of the balance.

You can find this chart along with the state specifics and other useful information at:

http://creditagenda.com/resources/statute-of-limitations.php

Statute of Limitations
(Listed by State)

There is an entire industry called "Junk Debt Buying" where debt collectors purchase debt that is past the statute of limitations and report new bogus status dates on credit reports to continue with collection efforts.

My company can help your clients with these rogue debt collection agencies by demanding validation under the Fair Debt Collection Practices Act (FDCPA) and help remove the expired debts from their credit reports using the Fair Credit Reporting Act (FCRA).

Take a moment to check out our affiliate program at www.MyCreditProgram.com to learn more.

Statute of Limitations - Time Limit for Collecting Judgments

Courtesy of Credit Assistance Network

You can find more useful tools to help your clients with credit and debt issues at http://www.CreditAgenda.com

When a creditor wins a lawsuit against a you and is awarded a judgment by the court, there is a time limit for collecting that judgment. Many states allow judgments to be renewed one or more times, which could substantially extend the enforceability of a judgment, if the creditor is vigilant about the renewals. This can potentially result in a permanent legal obligation until it is paid.




Alabama
Statute Of Limitations says they can collect for up to: 20 Years
The Maximum Interest Rate that can be charged on a judgment is: (%)12


Arkansas
Statute Of Limitations says they can collect for up to: 10 Years
The Maximum Interest Rate that can be charged on a judgment is:10.5



Alaska
The Statute Of Limitations says they can collect for up to: 5 Years
The Maximum Interest Rate that can be charged in this state on a judgment is:10



Arizona
The Statute Of Limitations says they can collect for up to: 10 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: Fed + 5


California
The Statute Of Limitations says they can collect for up to: 10 Years
The Maximum Interest Rate that can be charged in this state on a judgment is:10


Colorado
The Statute Of Limitations says they can collect for up to: 20 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 8


Connecticut
The Statute Of Limitations says they can collect for up to: 20 Years
The Maximum Interest Rate that can be charged in this state on a judgment is:10


Delaware
The Statute Of Limitations says they can collect for up to: No Limit
The Maximum Interest Rate that can be charged in this state on a judgment is: Legal + Fed Discount + 5


D.C.
The Statute Of Limitations says they can collect for up to: 3 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 70% of interest rate or 6% if not specified


Florida
The Statute Of Limitations says they can collect for up to: 20 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 10%


Georgia
The Statute Of Limitations says they can collect for up to: 7 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 12%


Hawaii
The Statute Of Limitations says they can collect for up to: 10 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 10%


Iowa
The Statute Of Limitations says they can collect for up to: 6 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 10.875%


Idaho
The Statute Of Limitations says they can collect for up to: 20 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 9%


Illinois
The Statute Of Limitations says they can collect for up to: 20 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 8%


Indiana
The Statute Of Limitations says they can collect for up to:20 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 10%


Kansas
The Statute Of Limitations says they can collect for up to: 5 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 4% above Fed Discount


Kentucky
The Statute Of Limitations says they can collect for up to: 15 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 12%


Louisiana
The Statute Of Limitations says they can collect for up to: 10 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 9%


Maine
The Statute Of Limitations says they can collect for up to: 20 Years (Ouch!)
The Maximum Interest Rate that can be charged in this state on a judgment is: 7.5%


Maryland
The Statute Of Limitations says they can collect for up to: 12 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 15% if under 30 months, T-bill rate if over 30 months


Massachusetts
The Statute Of Limitations says they can collect for up to: 20 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 10%


Michigan
The Statute Of Limitations says they can collect for up to: 10 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 20%


Minnesota
The Statute Of Limitations says they can collect for up to: 10 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 6.953%


Mississippi
The Statute Of Limitations says they can collect judgments for up to: 7 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 5% changes yearly


Missouri
The Statute Of Limitations says they can collect judgments for up to: 10 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: Amount in contract


Montana
The Statute Of Limitations says they can collect judgments for up to: 10 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 9%


North Carolina
The Statute Of Limitations says they can collect judgments for up to: 5 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 10%


North Dakota
The Statute Of Limitations says they can collect judgments for up to: 6 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 1% above bond equiv Yield


Nebraska
The Statute Of Limitations says they can collect judgments for up to: 20 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 2% above Prime


New Hampshire
The Statute Of Limitations says they can collect judgments for up to: 20 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 10%


New Jersey
The Statute Of Limitations says they can collect judgments for up to: 14 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: No provisions


New Mexico
The Statute Of Limitations says they can collect judgments for up to: 20 (ohhh no!)
The Maximum Interest Rate that can be charged in this state on a judgment is: 8.75% without written contract


Nevada
The Statute Of Limitations says they can collect judgments for up to: 10 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 9%


New York
The Statute Of Limitations says they can collect judgments for up to: 10 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 8%


Ohio
The Statute Of Limitations says they can collect judgments for up to: 21 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 12%


Oklahoma
The Statute Of Limitations says they can collect judgments for up to: 5 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 10%


Oregon
The Statute Of Limitations says they can collect judgments for up to: 10 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 4% over T-bill


Pennsylvania
The Statute Of Limitations says they can collect judgments for up to: 4 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 9% renewable @10 yrs


Rhode Island
The Statute Of Limitations says they can collect judgments for up to: 20 Years (eeek!)
The Maximum Interest Rate that can be charged in this state on a judgment is: 6%


South Carolina
The Statute Of Limitations says they can collect judgments for up to: 10 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 12%


South Dakota
The Statute Of Limitations says they can collect judgments for up to: 20 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 14%


Tennessee
The Statute Of Limitations says they can collect judgments for up to: 10 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 10%


Texas
The Statute Of Limitations says they can collect judgments for up to: 10 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 10%


Utah
The Statute Of Limitations says they can collect judgments for up to: 8 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: can be 18% w/Agreement - or 6% without


Virginia
The Statute Of Limitations says they can collect judgments for up to: 8 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: Judgement Contract Rate


Vermont
The Statute Of Limitations says they can collect judgments for up to: 20 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 12%


Washington
The Statute Of Limitations says they can collect judgments for up to: 10 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 9%


Wisconsin
The Statute Of Limitations says they can collect judgments for up to: 10 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 12%


West Virginia
The Statute Of Limitations says they can collect judgments for up to: 20 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 10%


Wyoming
The Statute Of Limitations says they can collect judgments for up to: 5 Years
The Maximum Interest Rate that can be charged in this state on a judgment is: 12


Hope the info was helpful. This list was updated 5-27-10. If you know of any changes please chime in and let the forum know.

If you need help removing a judgment from your credit report, please visit http://www.CreditAgenda.com.

This letter is demanding the removal of negative information removed after no response from previous validation demand. Only use after debt validation was insufficent.

Courtesy of Credit Assistance Network

You can find more useful tools to help your clients with credit and debt issues at http://www.CreditAgenda.com

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To Whom It May Concern:

I am enclosing a copy of the letter that I mailed you requesting that you verify the alleged debt your company claims I owe. More than 30 days have passed and I have not received proof that you have validated the debt.

Therefore, in accordance with section 1692e(8) of the Debt Collection Practices Act, which states that any information that is “false, deceptive or misleading” cannot be reported to any credit bureau, I request that you immediately delete this false and misleading information from my credit report.

Please send me a notice showing I owe nothing and that you have deleted this bogus item from my reports.

Sincerely,





John Doe





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This letter can help your clients deal with a debt that is inaccurate, inflated, outdated or past the statute of limitations.

A preliminary request to validate the debt information in order to ensure accuracy. Debt Validation is in accordance of the Fair Debt Collection Practices Act (FDCPA)

Courtesy of Credit Assistance Network

You can find more useful tools to help your clients with credit and debt issues at http://www.CreditAgenda.com

To Whom It May Concern,


This letter is being sent to you in response to a listing on my credit report. Be advised that this is not a refusal to pay, but a notice sent pursuant to the Fair Debt Collection Practices Act, 15 USC 1692g (Sec. 809) that your claim is disputed and validation is requested.

I must demand proof of this debt, specifically the alleged contract or other instrument bearing my signature, as well as proof of your authority in this matter. Absent such proof, you must correct any erroneous reports of this past debt as mine.

I ask you to provide the following information:

1. Please evidence your authorization under 15 USC 1692(e) and 15 USC 1692(f) in this alleged matter.
2. What is your authorization of law for your collection of information?
3. What is your authorization of law for your collection of this alleged debt?
4. Please evidence your authorization to do business or operate in this state.
5. Please evidence proof of the alleged debt, including specifically the alleged contract or other instrument bearing my signature.
6. Please provide a complete account history, including any charges added for collection activity.

You have thirty (30) days from receipt of this notice to respond. Your failure to respond, on point, in writing, hand signed, and in a timely manner, will work as a waiver to any and all of your claims in this matter, and will entitle me to presume that you placed this on my credit report(s) in error and that this matter is permanently closed. Provide the proof, or correct the record and remove this invalid debt from all sources to which you have reported it.

For the purposes of 15 USC 1692 et seq., this Notice has the same effect as a dispute to the validity of the alleged debt and a dispute to the validity of your claims. This Notice is an attempt to correct your records, and any information received from you will be collected as evidence should further action be necessary. This is a request for information only, and is not a statement, election, or waiver of status.

Regards,






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Simple debt validation letter in accordance with the FDCPA

Courtesy of Credit Assistance Network

You can find more useful tools to help your clients with credit and debt issues at http://www.CreditAgenda.com

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Dear _________________,

Today is ____________ and I am writing in regards to inaccurate information placed in my credit files.

I am in dispute of the entire amount that you claim I owe them.

1.) Please provide verification by line item (with an explanation of each item) for the entire amount. Failure to provide verification within thirty days of receipt of this letter will be assumed an admission that this debt is not valid.

2.) I demand you cease all communications with me. Under the Fair Debt Collection Practices Act you are not allowed to contact me again until I receive verification of the validity of this debt.

3.) Please be advised that you are required by law to notify all Credit Reporting Agencies to whom you have reported this debt that this debt is disputed.

4.) I hereby request that you send me the name and address of the original creditor, if it is different from the current creditor.

5.) I have enclosed a copy of your original letter to me.

6.) I am sending this letter via certified mail with return receipt.



Sincerely,

John Consumer



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Tags: Free Debt Validation Debt, validate debt, validate FDCPA, F.D.C.P.A., Credit repair, credit improve, debt validate free letter, consumer letters, helpful letters, downloadable debt letters, FCRA, Equifax, TransUnion, Experian




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