Should you dispute a collection account that is near the Statute of Limitations?


Should you dispute a collection account that is near the Statute of Limitations?

Should you dispute a collection account that is near the Statute of Limitations?

The Statute of Limitations determines the length of time a collector has to sue you for a debt.

This could be 3 to 6 years depending on your state and the type of debt.

If you have a collection account that is approaching the end of the Statute of Limitations, what should you do?

More importantly, what should you avoid doing?

Consider carefully before disputing the debt.

I would suggest that you be very careful about disputing that account if you are close to the Statute of Limitations.

If you are weeks or even less time away from the Statute of Limitations on the account, should you dispute it?

Consider this carefully before doing anything. 

There is a chance that the debt collection company may sue you the day before the Statute of Limitations expires – I have seen this happen hundreds of times in the. 

However, this was more common 4 or 5 years ago. 

Now they tend to sue well in advance of the Statute of Limitations and do not wait until the last possible moment. 

If you are within a few weeks of the end of your Statute of Limitations, it is best to leave the debt alone until the Statute of Limitations expires.

Don’t rock the boat and pop up on their radar. 

Don’t bring unnecessary attention to the account. 

You want to get beyond the Statute of Limitations so they can’t sue you. 

If they cannot sue you, they can only credit report and send you letters. But you have options, such as sending a cease and desist letter

It is best to stay low key and get beyond the Statute of Limitations so they cannot sue you. 

Getting beyond the Statute of Limitations can give you some really nice advantages whether it is a $500 account or a $50,000 account.

If they sue us beyond the Statute of Limitations, then we can take some action

Why poke the sleeping bear?

There is no great advantage to doing this, and the risk may be tremendous

Keep this in mind whether you are disputing through the credit bureaus or through the debt collector under the FDCPA

Do the benefits of poking this bear outweigh the risks? 

It may be that the bear was already awake and it was fine. 

Often times, the risks are much greater than the benefits.

Why take that risk unnecessarily unless there is a really good reason?

We hope this is helpful to you!

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Thanks and have a great day!


John Watts


P.S. If you are looking for more information, check out our other articles about debt collection and the Statute of Limitations:

Statute of limitations: why debt collectors who sue you will lie about a payment

Can the Statute of Limitations be re-aged by income tax intercept?

When is the Statute of Limitations measured: the file date or trial date?

What’s the danger in making a payment past the Statute of Limitations?

“Is the Statute of Limitations in Alabama on a credit card lawsuit 3 years?”



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