Can a Collection Agency Collect a Debt That Is 14 Years Old?

Your debts do not disappear if you ignore them. Creditors pass debts on to collection agencies when consumers stop making payments. Collection agencies that cannot collect also sell accounts to other debt buyers. This process continues until you either pay off the debt or a collection agency writes off the account as a tax loss. While a collection agency can collect a 14 year old debt, its methods for doing so are limited.

Legal Recourse

After 14 years, state laws bar collection agencies from pursuing legal recourse against you for nonpayment. While all states statutes of limitation differ, MSN Money columnist Liz Pulliam Weston notes that most state laws provide creditors --- including collection agencies --- three to six years to bring suit against debtors before doing so violates state laws. A collection agency's inability to file a lawsuit does not prevent it from successfully recovering the debt, but it considerably restricts its ability to do so.

Voluntary Payment

While state laws bar collection agencies from legally bringing suit against consumers for payment after the state's statute of limitations passes, they do not prohibit collection agencies from actually collecting the debt. If you pay off the debt voluntarily, the collection agency will accept your payment. Given the fact that a collection agency cannot legally sue a consumer after 14 years, debt collection companies often offer settlements or payment plans for old debts, making paying off the account easier to manage financially.

Involuntary Payment

Not all debt collection companies adhere to state and federal guidelines regarding debt recovery processes. Because of this, an unethical collection agency may still sue the debtor even if the individual's state's statute of limitations has already expired for the debt. If the consumer does not appear in court and claim the expired statute as a defense, the collection agency wins a civil judgment against the individual by default. A collection agency that holds a civil judgment can use it as a tool to garnish wages and seize other assets, such as bank accounts and some forms of personal property. State laws vary regarding the rights collectors have after winning a judgment.

Collection Methods

Although debt collectors can collect debts from individuals willing to pay them, regardless of the debt's age, they must closely follow the federal laws outlined in the Fair Debt Collection Practices Act when conducting collection activity. Debt collectors can call debtors or send dunning letters, but they cannot threaten to sue, garnish wages or seize property. Because the expired statute of limitations renders such action illegal, threatening to take the action in an effort to obtain payment is also illegal.