Legal Question in Credit and Debt Law in New York
Statute of limitations
I have several questions I would like to ask. My first question is can a company sell your account after the statute of limitation has ran out. Secondly, I will like to know if the company they sold it to have the legal right to sue or put it on your credit report. If so what can I do about it. In relation to this I applied for a $5000.00 loan and was denied because a debtor whom ran out their statute of limitation to sue noted a debt of $2000.00 on my credit report what can I do to rectify the situation without making a settlement with the company? Any advice given will be greatly appreciated.
Thankyou in advance for your time.
2 Answers from Attorneys
Re: Statute of limitations
A collection agency can NOT place the debt on your credit report if it is longer than 7yrs since you FIRST became delinquent with the ORIGINAL creditor. (Some limited exceptions). This is a violation of Fair Credit Reporting Act.
A creditor can try to collect from you but your defense is SOL has run out and they will lose. If you made or make a partial pymt or acknowledge the debt in writing, the clock starts to run all over again. I would need more info to advise further. You may contact me or Email.
Re: Statute of limitations
Q. Can a company sell your account after the statute of limitation has ran out.
A. Yes.
Q. If the company they sold it to have the legal right to sue or put it on your credit report.
A. The company can commence a lawsuit. The debt should not be on your credit report.
Q. If so what can I do about it.
A. It depends if the company commenced the lawsuit. Either way, you could bring an action under the Federal Fair Debt Collection Practices Act.
Mike
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