Did you know that there is a statute of limitations that regulates bad debt? Probably not!

Here is state by state limitations:
State(in years)

Oral Agreements Written Contracts Promissory Notes Open Accounts

Alabama 6 6 6 3
Alaska 6 6 6 6
Arizona 3 6 5 3
Arkansas 3 5 6 3
California 2 4 4 4
Colorado 6 6 6 6
Connecticut 3 6 6
Delaware 3 3 6 3
D.C. 3 3 3 3
Florida 4 5 5 4
Georgia 4 6 6 4
Hawaii 6 6 6 6
Idaho 4 5 10 4
Illinois 5 10 6 5
Indiana 6 10 10 6
Iowa 5 10 5 5
Kansas 3 5 5 3
Kentucky 5 15 15 5
Louisiana 10 10 10 3
Maine 6 6 6 6
Maryland 3 3 6 3
Massachusetts 6 6 6
Michigan 6 6 6 6
Minnesota 6 6 6 6
Mississippi 3 3 3 3
Missouri 5 10 10 5
Montana 5 8 8 5
Nebraska 4 5 6 4
Nevada 4 6 3 4
New Hampshire 3 3 6 3
New Jersey 6 6 6 6
New Mexico 4 6 6 4
New York 6 6 6 6
North Carolina 3 3 5 3
North Dakota 6 6 6 6
Ohio 6 15 15 -
Oklahoma 3 5 5 3
Oregon 6 6 6 6
Pennsylvania 4 4 4 4
Rhode Island 15 15 10 10
South Carolina 10 10 3 3
South Dakota 6 6 6 6
Tennessee 6 6 6 6
Texas 4 4 4 4
Utah 4 4 4 4
Vermont 6 6 5 6
Virginia 3 5 6 3
Washington 3 6 6 3
West Virginia 5 10 6 5
Wisconsin 6 6 10 6
Wyoming 8 10 10 8

Armed with this information what do you? Find out what type of contract you entered into and apply the statue using the date of last activity. When the collection agents call listen and let them talk. No matter what they say, say nothing and answer no questions. Why?
1. They could have the wrong person.
2. They could have the wrong account.
3. They could have the wrong account balance.
4. They could have purchased invalid debt.
5. You may admit to the debt through “implied consent.” Doesn’t matter if it is your debt, if you admit to it they will come after you and you could have reset the statue of limitations.

Your response to whatever is said is, “I do not recognize the debt or the creditor.” Never change the script. The Federal Credit Reporting Act (FCRA1987 revised 2004) and The Fair and Accuracy Credit Transaction Act of (FACT2004) are designed to hold the collection agencies accountable.

The established guidelines and statues of the Federal Fair Billing Act (FBCA1974 revised 2002) regulate balances, fees and penalties. If you cannot afford a professional negotiator to advocate for you, arm yourself with the information available and proceed offensively and don’t react defensible when they call.

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