Debt Collection Tactics and Reviving Old Debt

Many unscrupulous debt collectors violate the Fair Debt Collection Practices Act (FDCPA) by harassing consumers and making fraudulent claims about debts that are owed. In numerous debt collection scenarios, the individuals on the receiving end of debt collection calls and other forms of contact never owed the debt in the first place. For other consumers, it is important to know that the statute of limitations may have passed on the debt, which means that the debt collector cannot file a claim in order to recover the debt. Although the statute of limitations does not change the fact that a consumer may owe the debt to a creditor, it does prevent a debt collector from taking action against a consumer after a specific period of time. In other words, a consumer should not need to worry about being the subject of a debt collection lawsuit once the limitations period has run out. This is also known as a time-barred debt.
However, there are things that a consumer can do to reactivate or revive a debt, and many debt collection companies will attempt to get consumers to do just this. According to an article from USA Today, “shady debt collection tactics topped the list of complaints . . . to the Federal Trade Commission last year,” and some of those tactics involved convincing consumers to revive their debts. As the article explains, it is not necessarily illegal for a debt collection company to use tactics designed to have consumers revive old debt. What should you know about reviving old debt and the protections associated with time-barred debt?
Understanding Time-Barred Debt and its Implication for Reviving Debt
When you have a legitimate debt—meaning that you actually owed the debt at one point—you may be receiving calls from debt collection companies. Typically, you will be contacted first by the creditor, and after an extensive period of nonpayment, the creditor may sell your debt to a debt buyer, and you may begin receiving calls from a debt collection company. In some of these cases, the debt is time-barred.
What is a time-barred debt? This term refers to a debt for which the statute of limitations period has passed. As such, a creditor or a debt collection company cannot sue you in order to collect the debt you owe. Once the time period in the statute of limitations runs out, the creditor or debt collector is barred from filing a claim. What is the statute of limitations for debts in Illinois? The answer to that question depends upon the type of debt. In general, however, the statute of limitations for debts with unwritten contracts is five years, while the statute of limitations for debts with written contracts is 10 years.
You do Not Want to Revive Your Old Debt
When the statute of limitations runs out on a debt, there are ways that the consumer can revive the debt. When a consumer revives the debt, the statute of limitations starts all over again and the creditor or debt collector is no longer barred from filing a claim. Given that reviving a time-barred debt can be financially disastrous for many consumers, it is important to know how to avoid this.
You may receive a call from a debt collector about a time-barred debt. To avoid reviving the debt, you should avoid any of the following:
  • Transferring part of your old debt to a new credit card;
  • Agreeing to make payment plans on the old debt;
  • Acknowledging the old debt and that you are responsible for it; and/or
  • Making any kind of payment on the debt.
Contact an Oak Park Consumer Protection Attorney
If you have questions about time-barred debt or making sure that you do not revive a debt when a debt collector calls, you should speak with an Oak Park consumer protection lawyer about your case. Contact the Emerson Law Firm today to learn more about how we can help with your situation.
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