No debtor has a legal requirement to pay a debt that has gone past its statute of limitations in the state from which it created. In some cases, however, a debtor may choose to pay an expired debt out of a sense of moral obligation or so he can open another account with the company that originally lent the money. If a debt collector attempts to collect on a debt that has expired under the relevant statute of limitations, they may be liable for a $1,000 penalty to the debtor for each recorded violation.
Finding Debt
Contact the company that owns the expired debt. The debt may still be on your credit report even if it has gone past the statute of limitations in your state, but it doesn't mean that you are obligated to pay it. A charged-off debt will remain on your credit report for seven years. Ask a customer service representative how you would go about paying the debt. Mention that the debt has expired according to the relevant statute of limitations.
Settling or Paying Debt in Full
The company that owns the expired debt will be amenable to a settlement for less than the total amount owed because the firm lacks any legal ability to pursue you for collections. Request that the company provides you with a written agreement to settle the debt. Make an initial offer at 10 percent of the amount owed and move up from there if they refuse.
Paying to Clean Your Credit Report
You may request a "pay for delete" for any expired debt from the company. If you can successfully negotiate this, the company will delete the relevant entry from your credit report in return for a payment. This can instantly improve your credit report. You can even get credit card charge-offs deleted in return for payments. Although companies are contractually obligated to report accurate information to the credit bureaus, the individual companies themselves have a strong incentive to take payments in return for changing a single entry in their databases. Only offer a payment if you have a written agreement from the lender to delete, settle or mark your debt as "paid in full."
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