Statute of Limitations

Last week, we discussed how a credit reporting time limit is measured and how this time limit relates to your credit items.  It is important to remember that credit reporting time limits and statute of limitations are both factors considered with individual items, but they measure different time limits. Today, we will cover statute of limitations.

A statute of limitation regarding a debt is the period of time that a creditor or collection company is legally allowed to pursue you in court. Their goal is to make the court force you to pay the debt by ruling in their favor. The statute of limitation starts from the account’s last date of activity, and the time limits vary by state. Keep in mind that the date of last activity may differ from the date of last delinquency.

Since the statute of limitation restarts every time there is any activity on the account, it is important that you do not do anything to restart the time limit!  Actions such as making a payment, making a new charge, or agreeing to a payment will restart the clock. Even if you only had a couple of months left, it will restart it! In some cases, the statute of limitations may be expired on items reporting within your credit report. The collection companies may still try to challenge the debt in court, but if you know for certain the statute of limitation is expired, you can use this to your advantage to help your case.

If you are summoned to court, make sure you present yourself. In our next segment, we will cover what happens to the collection once it is turned over to the courts. If you have any inaccurate items, MSI Credit Solutions can help you dispute these inaccuracies. If you are unsure as to how to dispute these items, you do not have to do it alone. MSI can provide you the professional services needed to assist in eliminating inaccuracies.




MSI NEW LOGOMSI Credit Solutions provides superior credit restoration and comprehensive consulting services that are reliable and affordable. For any questions or to schedule a free credit consultation, contact us at (866) 217-9841.

 *The information in this article has been provided strictly for educational purposes.


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  1. […] this point, we have now distinguished the difference between credit reporting time limitations and statute of limitations. Today we will cover how debt collectors can use the court system to issue a judgment in their […]

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