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Marsha411JD, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 20239
Experience:  Licensed Attorney with 29 yrs exp with Consumer Law issues
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Does a collection agency have any right to collect on a debt

Customer Question

Does a collection agency have any right to collect on a debt if it is over the four years from when the contract is breached?
Submitted: 4 years ago.
Category: Consumer Protection Law
Expert:  Marsha411JD replied 4 years ago.

Yes, they can always try to collect on the debt. However, unless this a collection on a judgment, which has no statute of limitations, or the last time it was breached was within the 4 years SOL, then they would not be able to sue for the alleged debt. However, they can try to collect and they can make an entry into the debtors credit report, they just can't sue unless it meets the 4 year test. That said, with debts on contracts, the issue that is often litigated under the statute of limitations is when did the breach occur. Obviously the first time nonpayment was made it occurred. If the debtor attempted to pay again after nonpayment or entered into agreement to pay, then the court can find that the clock started over from the next time there was nonpayment.

A little confusing, but that is the general way these debt issues and the SOL and collections go.