Debt collection can feel like a never-ending battle. No matter how many times you ask debt collectors to stop calling, they keep pursuing you for payments on old debts. You may wonder – will they ever just give up and leave me alone?
The truth is debt collectors are persistent. Their job is to collect on unpaid debts so they will continue to contact you seeking payment for years in many cases. However, there are legal limitations on how long they can pursue old debts. Understanding your rights as a consumer can help you take control of the situation.
This article will explain:
- Why debt collectors are so relentless
- How long they can legally pursue old debts
- When you can request they stop contacting you
- Strategies for handling debt collectors
Why Debt Collectors Are So Relentless
Let’s start by understanding why debt collectors seem so relentless in their pursuit of payments.
When you fall behind on payments to a creditor like a credit card company or hospital, they have the right to charge-off your debt after 180 days and sell it to a collection agency. The original creditor receives a percentage of the amount collected while the agency keeps the rest.
This creates a big incentive for collectors to pursue every lead. The more payments they can collect the more money they make. Even if you owe a small amount they will keep calling and sending letters because their business model depends on collecting debts.
Debt collectors are also allowed to use questionable tactics that encourage people to pay. They can call you repeatedly, send letters threatening legal action, and even file lawsuits in some cases – all to pressure you to pay up.
While frustrating for consumers, this relentless pursuit of payment is how debt collection agencies make their profits. They buy debts for pennies on the dollar hoping to collect a percentage of what’s owed. Giving up means losing money.
How Long Can Debt Collectors Pursue Old Debts?
The most important thing to understand when dealing with collectors is the statute of limitations – a law restricting how long they can sue you to collect a debt.
The statute of limitations varies by state, but ranges from 3 to 10 years in most cases. The timeline generally starts from the date of your first missed payment or last payment made. Once the statute of limitations expires, collectors lose their legal right to file a lawsuit against you for that debt.
However, the statute of limitations DOES NOT cancel the debt or prohibit them from contacting you. Collectors can still call and send letters asking you to pay voluntarily. Ignoring collectors won’t make debts disappear once the statute of limitations runs out. The law only strips away their ability to sue.
You can find the statute of limitations that applies to your state and debt type here:
[Insert table showing statute of limitations by state from reference article]
When Can You Request They Stop Contacting You?
To legally force debt collectors to stop communicating with you over an expired debt, you must send them a cease and desist letter. This formally revokes their right to contact you under the Fair Debt Collection Practices Act.
A cease and desist template typically states:
- Your name and contact information
- The account number for the debt
- A request that the collector stop all communication regarding the expired debt
Be sure to send this letter via certified mail with return receipt requested. This provides proof the collector received your request to stop communications. If they continue contacting you after that, they are violating federal law.
Strategies for Handling Debt Collectors
Now let’s discuss proactive strategies you can use when dealing with collectors over old debts:
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Verify the debt – Always request validation before paying anything. Make collectors prove in writing that the debt is legitimate and belongs to you.
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Confirm it is still enforceable – Review the statute of limitations and don’t pay expired debts that are no longer legally enforceable.
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Negotiate a settlement – If able, offer a lump sum payment for less than what you owe. Get any deal in writing.
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Rebuild credit – Paying legitimate debts can help improve your credit over time. Focus on re-establishing positive payment history.
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Send a cease and desist letter – Formally demand collectors stop contacting you regarding expired debts that you don’t intend to pay voluntarily.
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Seek legal help – If you are sued over an expired debt or collectors won’t stop calling, consult a consumer protection attorney right away.
The bottom line is debt collectors rely on relentlessly pursuing consumers to collect unpaid debts. But with the right knowledge, you can take control of the process and handle collectors legally and strategically. Learn your rights, verify old debts, negotiate, and don’t hesitate to seek professional legal help responding to lawsuits or harassment.
Dealing with debt collectors is frustrating, but they are simply doing their job in demanding payment on debts you allegedly owe. Understanding the statute of limitations, your rights under federal law, and smart strategies for verifying, negotiating, and rebuilding credit can help you handle old debts in a way that protects your finances and peace of mind.
While collectors seem relentless, they cannot legally pursue you forever. With the right legal knowledge and professional help, you can take control of the debt collection process while working to improve your financial situation long-term. Don’t let debt collectors bully you – learn to respond effectively.
Understanding the debt collection process
The debt collection process begins when it is handled by the creditor. You will receive letters and maybe even phone calls that are seeking you to collect on the debt. After a few months, it might then be handed over to a collection agency. At this point, you will be contacted by the collection agency who may ask you about your bank accounts, your personal property, and other ways to begin planning to garnish your debt. Eventually, they may sue you for non-payment.
Stop calls from debt collectors
Do you keep getting calls from an unknown number, only to realize that it’s a debt collector on the other line? If you’ve been called by any of the following numbers, chances are you have collectors coming after you, and we’ll tell you how to stop them.
Getting Sued By A Debt Collector? DO THIS FIRST!
FAQ
At what point do debt collectors give up?
The statute of limitations typically ranges from 3 to 10 years, depending on the state and type of debt.
What is the 777 rule with debt collectors?
What happens if you ignore a debt collector?
What’s the worst thing a debt collector can do?
What happens if you don’t pay a debt collection agency?
If you don’t pay a debt collector or collection agency, you’ll likely face increasing efforts to collect the debt via phone calls, letters, or even social media contact. Not paying a debt in collections will also hurt your credit score. If you don’t pay, the collection agency can sue you to try to collect the debt.
Should you ignore a debt collector?
In most cases, it’s not a good idea to ignore a debt collector. Yes, even though they’re stressful and sometimes aggressive. Unfortunately, ignoring a debt collector or not paying a collection agency won’t make them stop sending letters or making collection calls. It won’t make the debt go away either.
Can a debt collector contact me if I owe money?
The person contacting you could be a debt collection scammer. You could be speaking to a fake debt collector, attempting to make you pay money you don’t owe. Even though the statute of limitations has expired, a debt collector can still contact you to resolve the unpaid bill because you still owe the debt.
Can a debt collector make a mistake?
Old debts have often been passed from one collection agency to another, and it’s very easy for debt collectors to make a mistake. The money they say you owe might not be your debt. It might belong to someone with a similar name or someone who once had your telephone number. In some cases, claiming the debt can reset the statute of limitations.
What if a debt collector is not the original creditor?
If the debt collector is not the original creditor, you can send a written notice demanding a stop to the collector calls. If they don’t stop contacting you, they may be in violation of the FDCPA. The FDCPA usually does not apply to the original creditor but does apply to collection companies and debt buyers.
Can a debt collector collect a payment?
Neither the debt nor the payment has changed, but another entity, the debt collector, now has the right to collect the payment. “Debt collectors are companies that collect unpaid debts for others,” says April Lewis-Parks, director of education and corporate communications at Consolidated Credit.