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Rachel Hunter, J.D. | Article

Revival of Time-Barred Debts

7/9/2012
Although a debt is barred by the statute of limitation and even though a debt collector may be barred from misrepresenting the status or character of a debt, not all debt collectors are nice. If they told a debtor that a debt was barred, few debtors would ever pay voluntarily. Consequently, some debt collectors may resort to misrepresentations to try to get the debtor to acknowledge or affirm the debt or even make a payment thereon. If this happens, especially if you make a payment, it will “revive” the debt and cause the statute of limitations to start running anew. Recently, a very large junk debt buyer called Asset Acceptance got into hot water for a range of misrepresentations it made regarding time-barred debts. You can read about the settlement here: http://www.ftc.gov/opa/2012/01/asset.shtm.

Copyright (c) 2012 by Rachel Lea Hunter

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