Legal Question in Credit and Debt Law in Missouri

account charged off/without prejudice

I opened an account with a loan company 11-1995 and closed 11/2000 charged off as bad debit on Experian. CSC shows my last date of activity was 8/96. Does this mean my last payment was August 1996? On the credit report it shows Type/Terms/Monthly payment: Installment/48 months $98.00 as a sales contract. Since then the party summoned me to court. The cause was dismissed without prejuidice for failure to prosecute 3-17-1999. I moved a year ago and chaned numbers, I'm now receiving calls from them and correspondence. I recently sent the Experian a copy of the court document to remove the negative information from my credit report. I guess due to them investigating this they sent for a response from the party and now party is seeking to collect.

For the state of Missouri what's the statue of limitations for this type of account? Also, since they didn't persue it 3yrs and 5 months ago are they entitled to collect?


Asked on 8/10/02, 9:14 am

1 Answer from Attorneys
Jim Van Dillen Van Dillen & Flood, P.C.

Re: account charged off/without prejudice

Generally speaking a contract in writing is enforceable in court for up to 10 years from the date of entering into the contract or date of last payment, whichever is later. The debt is still collectable.

The fact it was dismissed without prejudice means there was no final determination of the rights and duties between the parties by the court. Each party is therefore still entitled to have a day in court.

Good luck.

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Answered on 8/10/02, 11:27 am


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