Can a Debt Collector Call About a Debt More Than Four Years Old?

Under state and federal laws, your creditors have the right to sell your delinquent accounts to collection agencies. Furthermore, your creditors can enlist the help of collection agencies if you fail to repay your debts. The practices of debt collectors are subject to state and federal laws but in many cases, collection agencies can contact you more than four years after you fall behind on a debt.

Statute of Limitations

In every state, the statute of limitations places a time limit on the amount of time that a debt collector has to take you to court as a way of collecting payment on a past-due debt. In Alabama and Arizona, the statue of limitations expires after just three years on some types of debts but in Kentucky and Rhode Island, creditors can take you to court up to 15 years after you default on a debt. Needless, to say, collection agencies can contact you prior to the end of the statute of limitations.

Scavengers

Some so-called "scavenger" firms specialize in trying to collect on debts long after the statute of limitations has expired. Contrary to popular belief, a collection firm can still contact you even if the statute of limitations means that the creditor can no longer sue you. In fact, some firms even try to sue consumers after the statute has expired. You could end up having to repay the debt if you do not actually show up in court and ask the judge to dismiss the case due to the expiration of the statute of limitations.

Credit Score

Many consumers mistakenly think that the information on your credit report has an impact on a debt collector's ability to collect on an unpaid debt. In reality, under federal credit reporting laws, a credit bureau can keep information about your past-due debts on file for a period of seven years. This information may deter other creditors from lending you money, but this seven-year time frame has no impact on your state's statute of limitations.

Considerations

Legally, a debt collector must send you a notice explaining the debt that you owe and the collection agent must send this notice within five days of first contacting you. Under federal laws, collection agencies cannot contact you before 8 a.m. or after 9 p.m. Regardless of the statute of limitations, you can stop a collection firm from calling you by sending a letter that instructs the collection firm to cease contact. Thereafter, the firm may only contact you if it plans to take specific action against you, such as suing you or if it contacts you to inform you that contact will cease.