No lawsuits or threats of lawsuits on time-barred debt
12 C.F.R. § 1006.26(b)
In plain words
Once your state's statute of limitations has run on a debt, a debt collector may not sue you — or threaten to sue you — to collect it. Be careful: in many states a payment or written promise to pay can restart or revive the limitations period, so get advice before paying anything on an old debt.
Who is protected
Consumers contacted by a third-party debt collector (including most debt buyers and collection law firms) about a personal, family or household debt.
When it applies
- Only if a debt collector is involved.
What you can do
Open the Credit Health tool
Upload your free reports from AnnualCreditReport.com. The tool lists items you may want to check and explains your options. You decide what, if anything, to dispute.
Open the toolIf you are sued on an old debt, answer the lawsuit
The statute of limitations is usually a defense you must raise yourself. Missing the answer deadline can mean a default judgment. Contact legal aid right away.
Honest limits
- A time-barred debt can still be collected by letters and calls (with required honesty) and can still appear on your credit report until the FCRA 7-year period ends.
- Whether a debt is time-barred depends on state law and dates that can be disputed.
The law
- Federal regulationRegulation F — time-barred debts
12 C.F.R. § 1006.26(b)
What it says: A debt collector must not bring or threaten a legal action to collect a time-barred debt (bankruptcy proofs of claim excepted).
Read the official texthttps://www.ecfr.gov/current/title-12/section-1006.26
Court cases
- Homeowner lostCited for this rightMidland Funding, LLC v. Johnson
Midland Funding, LLC v. Johnson, 581 U.S. 224 (2017)
filing an obviously time-barred proof of claim in bankruptcy does not violate the FDCPA
- Homeowner wonSame topicJerman v. Carlisle, McNellie, Rini, Kramer & Ulrich, L.P.A.
Jerman v. Carlisle, McNellie, Rini, Kramer & Ulrich, L.P.A., 559 U.S. 573 (2010)
the FDCPA's bona fide error defense does not excuse a debt collector's incorrect interpretation of what the Act requires
- Homeowner wonSame topicKaltenbach v. Richards
Kaltenbach v. Richards, 464 F.3d 524 (5th Cir. 2006)
a person who meets the FDCPA's general definition of debt collector is subject to the whole Act even while enforcing a security interest
- Homeowner wonSame topicHeintz v. Jenkins
Heintz v. Jenkins, 514 U.S. 291 (1995)
the FDCPA applies to lawyers who regularly collect consumer debts, even through litigation
- Homeowner lostSame topicObduskey v. McCarthy & Holthus LLP
Obduskey v. McCarthy & Holthus LLP, 586 U.S. 466 (2019)
a business engaged only in non-judicial foreclosure is not a debt collector under the FDCPA, apart from the provision barring threats to take property without a present right
Related rights
Most negative items must come off after 7 years
15 U.S.C. § 1681c(a)(a)(1), (4), (5)
Credit bureaus may not report collection accounts, charge-offs and most other negative items that are more than 7 years old. For a collection or charge-off, the 7 years start 180 days after the delinquency that led to it began — so, about 7½ years from the first missed payment that was never brought current. Paying, settling or re-selling the debt does not restart this clock. Bankruptcies can be reported for 10 years.
Read this rightAfter a discharge, creditors cannot collect the wiped-out debt from you
11 U.S.C. § 524(a)(2)
A bankruptcy discharge wipes out your personal liability for most debts in the case. After that, the law forbids creditors from suing, calling or otherwise trying to collect a discharged debt from you personally. A court can hold a creditor in contempt if there was no fair doubt that its conduct was barred.
Read this rightA collection or charge-off must carry its real delinquency date
15 U.S.C. § 1681s-2(a)(5)(A)
A company that reports an account placed for collection or charged off must tell the credit bureau the month and year the delinquency began, within 90 days. That date sets when the item must come off your report, and it does not change when the debt is sold.
Read this rightMake the company that reported the error investigate it
15 U.S.C. § 1681s-2(b)(1)
The company that reported the information — such as your servicer — must investigate when a credit bureau passes along your dispute, and fix what is wrong with every bureau. In many cases you can also dispute directly with that company, which must then investigate and report back to you.
Read this rightTell a debt collector to stop contacting you
15 U.S.C. § 1692c(c)
If you tell a debt collector in writing that you refuse to pay or want it to stop contacting you, it must stop. After that, it may only contact you to say it is ending its efforts or to tell you about a specific step it or the creditor may take, such as a lawsuit.
Read this rightA collector who breaks the FDCPA can owe you damages
15 U.S.C. § 1692k(a)
A debt collector that breaks the FDCPA is liable for your actual damages, additional damages of up to $1,000 the court may allow, and your costs and reasonable attorney's fees. A lawsuit must be filed within one year of the violation.
Read this right