Collections Law/Judgement

Advertisement

Expert: Regan Shinski - 6/8/2010


Question
I live in Florida, and I had a voluntary repossession in 2003. My debt was sold to a collection agency, and I still get letters from them. I have two questions... 1. I just looked on my credit report (all 3) and they are not listed on there anymore, Can they re-post the debt even though it has been 7 years? or is it gone for good??? 2. Can they file a judgement / lawsuit against me after this long? I read online somewhere that for an auto loan the statute of limitation for a lawsuit is 5 years. I work for a bank and have seen several account garnishments, and I am freaking out! This is the only negative thing I have ever had on my credit, and have made it a point to maintain perfect credit since. It would be so nice to have this monkey off my back! Thank you for your help!

Celeste

Answer
Celeste:

It would be against the law for them to put it back on your credit files.  However, people always have to stay vigilant as errors and intentional mispractice do take place.  If they do re-post it to your credit accounts, you likely have a real good lawsuit to collect damages.  most likely it will not reappear.

Similar answer on your question about them filing a lawsuit against you.  They can file a lawsuit, but you have an affirmative defense if it is outside the statute of limitations (SOL).  If it's outside the SOL, all you have to due is show up and reasonably prove it's outside the SOL.  The Florida SOL in cases like this is typically five years.  However the SOL is tolled (paused) if you move out of state.  Most creditors will not a file a lawsuit outside the SOL but people that do not know about the SOL have been duped into paying or getting a default judgement against them by not showing up if they are sued.  The SOL is also restarted with a voluntary payment under a new written agreement.

They cannot garnish without a judgement in place or your approval to withdraw funds.

Good luck.  Chances are you are safe and on sound legal grounds, but you have to stay vigilant and not ignore summons.

Regan

Collections Law

All Answers

Answers by Expert:

Ask Experts

Volunteer

Regan Shinski

Expertise

I can answer questions on collections, repossessions, bankruptcy, credit repair, credit counseling, FICO scores, credit planning, and the cause and effect of credit related decisions. I can also answer questions on collection settlements and preparing to sue your creditors for false debts and credit credit reporting.

Experience

Fifteen years ago I was financially devasted due to severe health issues. I filed bankruptcy, had a foreclosure, car repossession, tax lien, and ruined credit. I immersed myself in credit law. I settled dozens of accounts and had them removed to improve my credit. I personally sued four creditors and collection agencies and won cash settlements for their false reporting on my credit reports. Since then, I have completely recovered and have nearly $100,000 in revolving credit lines and perfect credit. I have owned a credit repair company for the past five years and have an additional three years of specific work in the collections and debt management industry. I am fully versed in the Fair Debt Collection Practices Acts (FDCPA), Fair Credit Reporting Act (FCRA), and have used them successfully in collection settlements and lawsuits for myself and others. I am also familiar with and abide by the Credit Repair Organizations Act (CROA). I have deleted or helped delete literally hundreds and hundreds of derogatory items from consumers' credit reports and helped negotiate many settlements with collection agencies and creditors. I have also advised people on bankruptcy at any stage. In the current credit market, I have successfully advised numerous people on how to obtain credit and how to negotiate for better terms.

Education/Credentials
BA University of Minnesota

©2012 About.com, a part of The New York Times Company. All rights reserved.