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Friday, September 30, 2016

How to Handle Expired Debt by Sean Pyles

Source: Los Angeles Times
Date: Sunday, September 18, 2016
Article: How to Handle Expired Debt
Writer: Sean Pyles
U-$0.10-B-0.006065-BE-17

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Answer Key

1. Debt that is older than the statute of limitations is called Time-Barred Debt.
2. The 3 pitfalls that collection agencies face are 1. you never took out the debt, 2. collection agency is seeking/collecting wrong amount, 3. you already paid and the collection is an error.
3. A debt collector should send you within 5 days of first contacting you a "Validation Notice."
4. Time-Barred Debt means creditors don't have a legal right to sue you.
5. The validation notice should include four things: 1. amount owed, 2. date of last payment, 3. who is the collector, 4. how to request information on the original creditor.
6. You have 30 days from first contact to dispute/challenge a debt before it's deemed accepted by default.
7. Debt collection efforts stop until dispute is investigated.
8. If you dispute the debt after 30 days, the collection agency can still ask for payment as you dispute.
9. You file a complaint with the Consumer Financial Agency if you feel a debt collection agency is violating your consumer rights.
10. If you pay a little of debt and not the whole amount, then you would reactivate the whole debt.
11. No, you cannot be sued for payment on time-barred debt.
12. The way you get rid off time barred debt is in 3 ways; 1. pay in full with a lump sum, 2. work with the creditor to set up a payment plan, 3. make a deal to settle the debt by paying a portion.



Reference:
https://www.nerdwallet.com/blog/author/spyles/

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