How to Know if the Debt Collection Statute of Limitations (SOL) has Been Reset
I have recently been contacted about two old loans from Oxford Law, LLC out of PA. They do not appear to be a legit Law office, from all the comments I have read on the internet. I live in Michigan and believe the SOL to be 6 years. One of the loans they are referencing no longer is appearing on my credit report. The other loan, the last payment was made in March of 2007, according to my credit report.
Under account history of the loan, it states "Charge Off as of Aug 2008 to May 2011", the status of the account reads: Closed. $x amount written off. $x amount past due as of Jun2011, would this mean the SOL is reset to 2011 even though last payment was made in 2007? I did contact the original creditor back then to resolve, but was told the accounts were closed and nothing could be done and they would not be coming after me a later date. The credit report does show the loan with the original creditor and does not reference any where the law office contacting me or the current owner of the debt, Milan Investments.
How do I know if the SOL has been reset?
—jamie
Short answer
There are two different clocks. The statute of limitations to sue can be reset and varies by state. The time a negative item stays on your credit report cannot be reset, because that is governed by federal law.
Key points on this page
- The limit on how long you can be sued and the time a negative item stays on your credit report are two separate clocks
- The time to sue can be reset and varies by state, while credit reporting time cannot be reset and is covered by the federal Fair Credit Reporting Act
- Michigan, like many other states, has a six year limit for suing on open accounts, revolving personal lines of credit and fixed loans
- Where six years have passed since your last payment, a collector can still file suit, but you can defend it quickly and simply as time barred
- In Michigan you renew the statute of limitations to be sued only when you do so in writing
- Speaking to a creditor, a debt collector or a new debt owner does not reset the clock to sue in Michigan, though it can in some other states
You are working with what are two different SOL time frames (statute of limitations). One is for resetting the SOL to legitimately sue (which can happen), and the other for re-aging the time for a negative item to remain on your credit report (which cannot).
One set of laws will vary by state, and the other is covered by federal Fair Credit Reporting (FCRA) laws. Lets take a look at how both apply to you given the information you shared.
Statute of Limitations to Legitimately Sue in Your State
Michigan, similar to many other states, has a 6 year limit for how long you can be sued for collection on open accounts, like revolving consumer credit cards; loans that may be revolving, like personal lines of credit; and even loans that are fixed, and governed narrowly by a written agreement.
If it has been six years since you last paid anything on the debts at issue, Milan Investments, nor Oxford Law LLC in Pennsylvania, can legitimately sue you. That is to say, they could file the suit, but you can defend that quickly and simply as being time barred. The last payment reference of 2011 on your credit reports appears to be erroneous.
In Michigan, you renew the statute of limitations to be sued, when you do so in writing. You can review the governing statute here. Speaking to the creditor, a debt collector, or a new debt owner does not reset the SOL clock to sue in your state (but it can in others).
Credit Reporting SOL for Accounts in Collection
Your credit reports will continue to show unpaid debts on your credit reports for up to 7.5 years from when you first missed your payments. That statute of limitations for reporting is governed by the FCRA at the federal level. There are some exceptions to this, like New York law for paid collections. But I am not aware of anything different regarding credit reporting in Michigan.
With your last payment to the creditor being March of 2007, this should be coming off of your credit report in a matter of weeks. The charge off reporting showing for the following year should not impact this (but unfortunately can). And though you mention that neither Oxford Law or Milan Investments are showing on your credit reports, any collection entry on your credit reports (other than a judgment for the same debt) should fall off at the same time as the loan originators reporting (also something to be watchful of).
You can dispute the credit reporting as too old to continue to appear on your credit reports. Send your dispute to the credit bureaus certified mail return receipt requested. You can send a copy of your dispute addressed to the company(s) reporting the collection account. Keep a copy of all that you send, and the green return cards you get, for your records. Post a follow up to the results of those disputes, and if items continue to show in your reports that should not, let’s take it from there.
Who is the original creditor?
Anyone with concerns about resetting or renewing the statute of limitations to be sued in your state is welcome to post questions and concerns in the comments below for feedback about you situation.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry. He is available to speak with you about your financial struggle and helps people resolve their debt problems daily.
Hi, I know the SOL in Texas is 4 years, but I did speak with a debt collector in 2015 so I’m curious if that reset the clock? Nothing is on my credit report & I haven’t received any letters.
Hi,I have a old dept where last payment or contact was 2010, then a judgment on me 2012 that I never knew about until I got serve papers on 2019 to appear in court on judgment. I think SOL in Guam is 5 or 6 yrs and 6yrs to enforcing a judgment. So it’s been 9 yrs since last payment or contact and judgement is over 6 yrs. So my question is can they still lawfully collect through court? And can the court still enforce after 6 yrs?
Thanks.
The SOL to sue is one time line, and the SOL to collect on an existing court judgment is another. And judgments, depending on the jurisdiction, can be renewed, and sometimes forever.
Talk to a local attorney about what the SOL to collect on a judgment is in Guam.
I got a call from dynamic recovery solutions on an old time barred debt from 02 and 06.. i politely told them to kick rocks and i dispute everything. a few days later i got an email from them stating the enclosed email had info to verify the debt. I didnt open it and thought they was suppose to send letter. What should i do or send the agency?
Email is not normal for debt collectors to send yet.
If the debt is passed your state SOL to legitimately sue, or to show on your credit reports, and you have no intention of dealing with Dynamic Recovery, you could send them a cease communication notice (send certified mail). The CFPB offers some example letters for debt collectors.
i have already checked. In alabama its only 3 years.. and they did indeed send me a validation of info through email but i didnt open.
I have read if you dont send a letters saying you dispute it they think its valid. If i send a cease and desist letter should i put i dispute it all..thanks
When a debt is passed the SOL to sue and I do not intend to resolve it, I care nothing about what a debt collector thinks. Check out this video about zombie debt.
I live in California and I have an old HSBC debt that I Last made a payment in 2011. A person claiming to be an attorney is saying that they are suing and is not considered SOL because it has been sold twice since than. I was wondering if that is true. They also told me that they would be serving me tomorrow between 8:00- 4:00.
The SOL to sue cannot be reset by the debt being sold to another debt collector. Add to that the reference to some serving you the next day, you appear to be dealing with a debt collection scam.
I’m getting divorce. Been going on over year. Illinois. I’m 70. Husband 55. I have soc.sec $1422 mo. I am to receive $2500 mo for maintenance for life. Now husband out of work. I have 75k credit card bills all credit in my name. Mortgage in my name owe $209,000,. Only one bill delinquent one husband used. Can I take money from my IRA to live and file bk on credit cards or can creditors take my IRA monies.
Talk over your options with an experienced bankruptcy attorney. Your IRA is typically protected from creditors.
Hello Sir,
In Nevada (community property state)….if credit card is just in my name, can creditor sue spouse for payment? Or get a judgement from spouse?
Ty
Mike
Talk to an experienced debt collection defense attorney in Nevada. I can email you a list if you like?
I do not see that happen too often, even in community property states.
Ty, in a couple days I will fill out the form to have the opportunity to talk with you. I am current with debt at this time, would like to run my situation past you for your insight.
Ty
Mike
Hello. By way of background, I have been making monthly payments with Key Bank’s recovery department for a few years now, and currently owe a balance of $34,666.53 for my private student loans. I live in NJ.
I recently called Key Bank to make my usual monthly agreed upon payment of $450 per month. During the call I was told by the account manager that as off July 21, 2016, my loans were in “out of statute stauts.” He also informed me that 6 years had just passed since the loan was “charged off” back in July 21, 2010. As such, he said that under NJ law, Key Bank could no longer sue me for the balance or sell the loan to a third party. Basically he said I could continue to make voluntary payments if I wanted to but Key Bank could not do anything to make me pay. I requested some kind of letter from him but he said they do not provide one.
I am not sure if my situation is a result of the SOL running out on Key Bank. Did my payments after the charge off back in July 2010 toll the SOL? Have you heard of another person facing a similar situation? Does this sound legit? Should I keep paying them? I have not looked at my credit report in years.
Thanks in advance for your advice
Generally speaking, when you make a payment on debt it reset the SOL. Your account being classified the way the Key bank employee outlined, at least in my experience, is a mistake. It could come back to haunt if you stopped paying.
Call me for a quick consult to go over a few questions. You can reach me at 800-939-8357, ext 2, or submit the “Talk to Michael” form in the right column on this page.
I was just contacted today by Dynamic Recovery Solutions saying that I owe $4800 for a Wells Fargo Student Loan for Sac State that was taken out in jan. of 2007. I asked them to provide back up they would not. I contacted Wells fargo who we have checking, saving and home mortgage with and they said they have no record of me taking a loan. I should mention we are in CA. I then calll DRS back and tell them this and they respond saying wells fargo wouldn’t have a record as they sold the loan to their client USI solutions Inc. So i call them again they will not send me any proof that this loan exists and has not paid. They confirm it is for a wells fargo student loan taken in jan. of 2007 defaulted in 2009 and my grandmother Mercedes is on the loan. She died in 2006. They guy at USI Solutions said WF sold the loan to Milan Investments and if i want back up i need to physically mail a request to Oxford Law in PA. and if i do so there would be serious repercussions and that they know i own my house and how much it is worth.
I spoke to my mother and she said I did have a student loan with WF but it was when i was at chico state in 2002. she also said she thought it had been paid off.
Both my husband are currently paying all of our student loans off and are in good standing. I just checked my 3 credit reports and no where is there a loan from WF other than my mortgage.
I don’t know what to do. I have worked really hard to get my credit in the 700’s and i dont want to ruin it. But i also don’t want to pay this if it is a scam. I also don’t appreciate them threatening to come after my home. How do I know if this legitimate? my mom said i should just ignore it, but like i said i don’t want my credit ruined by this.
I had a situation a few years ago on this site that somewhat tracked back to Oxford Law. It had to do with a debt collector acting out in the comments on a different page of the site. If you read this page about a debt collector with Cach LLC behaving badly, you will know why I removed your name and changed your initials too.
I am skeptical of anything to do with Oxford Law, and would like any information you can provide to me about who all is involved, whether that be with Dynamic, or anyone in PA. You can send the details to info at consumerrecoverynetwork.com. You are welcome to call me too, at 800-939-8357 ext 2.
I would encourage you file a debt collection complaint with the CFPB.
The SOL to legitimately sue in California is 4 years. You are passed that.
The limit for this to appear on your credit is as much as 7.5 years. You are passed that.
If this appears on your credit let me know and we can go from there.
Hello, quick question on Statute of limitations. I lived in Washington state and moved out of an apt in Jan 2012 without doing the walk through first. I moved to California the same day and later got a bill for $400 expenses not covered by my security deposit. I know they were not my damages but I was already out of state so i just forgot about about it. It showed up on my credit report in 2015 for twice that amount now (interest). I now live in California where the SOL is 4 years but WA state SOL is 6 years. Which states SOL applies here?
Talk to an experienced debt defense attorney to be sure. My take is that California SOL applies.
Did you receive that bill at the new California address? That means they know where you live, but that the SOL has passed. It can make it easier to settle for a good savings if you choose to at some point.
Hello. This has been helpful but I still have some questions regarding my particular situation. I had a car repossessed back in September of 2004. I was living in Michigan at the time. The original debtor received a judgement against me in July of 2005 but I did not make any payments. I moved out of state to Colorado in September 2005 to get family help with getting back on my feet. I got a job and then was transferred to Indiana in December 2009. I have not received any communication regarding this debt until recently. I got a court summons stating that I was being sued by the finance company I got my vehicle through, but this debt is nearly 11 years old. I have checked my credit report and it has been removed from all 3 bureaus. My question is this: is it possible that I reset the clock on the SOL due to my 2 moves? If not, how do I handle the court summons? I know I have to appear, but what exactly should I do to handle things once I get to court?
It would be odd for the auto lender to sue you again if they already have a judgment against you. It is common to be served legal papers when the judgment creditor wants to bring you back into the court to show assets and income in order to collect on the prior judgment. It is also common to have a judgment be brought into the courts in a new state in order to domesticate it in that state so that they can force collection.
You may not be dealing with an SOL issue in the way that you are currently concerned with.
How much is owed to the finance company today?