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Legalinfomd, Attorney
Category: Business Law
Satisfied Customers: 160
Experience:  Attorney with 24 years of experience in business law.
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In 2001, I owned a company and signed a lease for a credit

Customer Question

In 2001, I owned a company and signed a lease for a credit card machine. I made 17 payments on a 36 month lease. In 2003, I closed the business in 2003. I just received a demand letter for payment in full, $1,793.00 from a collection agency who purchased the lease from the original leasing company. Is this legal? Is there a limited time frame that a collector has to collect a debt? Thank you.
Submitted: 4 years ago.
Category: Business Law
Expert:  Legalinfomd replied 4 years ago.

Legalinfomd : Hello. I will respond to your question.
Customer :

Ok, thanks

Customer :

Is something wrong with this chat?

Legalinfomd : Generally, the statute of limitations (the time within which suit must be filed) is 3 years after the cause of action arose. That would be 3 years after your account became delinquent, or when you stopped paying. You may be able to successfully file a motion to dismiss based upon the statute of limitations.
Legalinfomd : In addition, if the claim is against the company only and not you personally, then any judgment may be uncollectable.
Customer :

So far all I received was a demand letter.

Customer :

It is not a judgement yet. I signed on behalf of the company.

Legalinfomd : They cannot sue you personally unless you signed the agreement in your personally capacity, or personally guaranteed the loan.
Customer :

Yes, I did sign for the company.

Legalinfomd : If you only received a demand letter, they may know that it is too late for them to file suit, and may just be hoping that you agree to payment terms without them having to file suit.
Customer :

That was in 2001

Legalinfomd : you may want to ignore the letter, and the matter may go away without suit being filed. If they do file suit, you could file a motion to dismiss.
Legalinfomd : I hope that this information has been helpful. Please be sure to leave a positive rating for my response so that I will receive dredit for my time. Thank you and good luck.
Customer :

No, I don't want to ignore the letter. I would like to cite the law to thus company in a certified letter. Can you point me to this statute?

Legalinfomd : What state are you in?
Customer :


Legalinfomd : Give me a moment and I will get you the cite.
Customer :

Thank you

Legalinfomd : West's Annotated Code of MarylandCourts and Judicial ProceedingsTitle 5. Limitations, Prohibited Actions, and Immunities (Refs & Annos)Subtitle 1. Limitations (Refs & Annos)MD Code, Courts and Judicial Proceedings, § 5-101§ 5-101. Civil actionsCurrentnessA civil action at law shall be filed within three years from the date it accrues unless another provision of the Code provides a different period of time within which an action shall be commenced.
Legalinfomd : That should do the trick for you.
Legalinfomd : Thank you again, and good luck.
Legalinfomd : Please remember to leave a positive rating when you accept my answer.
Legalinfomd : Hello. I see that you have not accepted my answer. If you do not accept my answer, with a positive rating, I will not be compensated for my time. I believe that I provided to you all of the information you sought, very promptly. I would greatly appreciate it if you would take a moment now to accept my answer with a positive rating. Thank you.
Customer : Dear
Customer : Dear Legalinfomd, we chatted last month. I have since received a copy of the lease for the credit card machine which states that it is governed by the laws of Illinois. It has a signature which is supposed to be mine but it isn't. It looks like someone tried to forge it. This company is pressing me hard to settle. Any suggestions?