Debt collection can feel like a never-ending battle. No matter how many times you ask debt collectors to stop calling, they keep pursuing you for payments on old debts. You may wonder – will they ever just give up and leave me alone?
The truth is debt collectors are persistent. Their job is to get people to pay back debts they owe, so they will probably keep calling you to ask for money for years. There are, however, legal limits on how long they can go after old debts. Being aware of your consumer rights can assist you in taking charge of the situation.
This article will explain:
- Why debt collectors are so relentless
- How long they can legally pursue old debts
- When you can request they stop contacting you
- Strategies for handling debt collectors
Why Debt Collectors Are So Relentless
Let’s start by understanding why debt collectors seem so relentless in their pursuit of payments.
When you fall behind on payments to a creditor like a credit card company or hospital, they have the right to charge-off your debt after 180 days and sell it to a collection agency. The original creditor receives a percentage of the amount collected while the agency keeps the rest.
This creates a big incentive for collectors to pursue every lead. The more payments they can collect the more money they make. Even if you owe a small amount they will keep calling and sending letters because their business model depends on collecting debts.
It is also legal for debt collectors to use sketchy methods to get people to pay. They can call you over and over, send you letters threatening to sue, and sometimes even go to court to get you to pay up.
Debt collection agencies make money by constantly trying to get people to pay. This can be annoying for customers. They purchase debts for very little money, hoping to get a small portion of what is owed. Giving up means losing money.
How Long Can Debt Collectors Pursue Old Debts?
The most important thing to understand when dealing with collectors is the statute of limitations – a law restricting how long they can sue you to collect a debt.
The statute of limitations varies by state, but ranges from 3 to 10 years in most cases. The timeline generally starts from the date of your first missed payment or last payment made. Once the statute of limitations expires, collectors lose their legal right to file a lawsuit against you for that debt.
However, the statute of limitations DOES NOT cancel the debt or prohibit them from contacting you. Collectors can still call and send letters asking you to pay voluntarily. Ignoring collectors won’t make debts disappear once the statute of limitations runs out. The law only strips away their ability to sue.
You can find the statute of limitations that applies to your state and debt type here:
[Insert table showing statute of limitations by state from reference article]
When Can You Request They Stop Contacting You?
To legally force debt collectors to stop communicating with you over an expired debt, you must send them a cease and desist letter. This formally revokes their right to contact you under the Fair Debt Collection Practices Act.
A cease and desist template typically states:
- Your name and contact information
- The account number for the debt
- A request that the collector stop all communication regarding the expired debt
Use certified mail and ask for a return receipt to send this letter. This shows that the collector got your request to stop talking to them. If they keep calling you after that, they are breaking the law at the federal level.
Strategies for Handling Debt Collectors
Now let’s discuss proactive strategies you can use when dealing with collectors over old debts:
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Verify the debt – Always request validation before paying anything. Make collectors prove in writing that the debt is legitimate and belongs to you.
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Confirm it is still enforceable – Review the statute of limitations and don’t pay expired debts that are no longer legally enforceable.
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Negotiate a settlement – If able, offer a lump sum payment for less than what you owe. Get any deal in writing.
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Rebuild credit – Paying legitimate debts can help improve your credit over time. Focus on re-establishing positive payment history.
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Send a cease and desist letter – Formally demand collectors stop contacting you regarding expired debts that you don’t intend to pay voluntarily.
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Seek legal help – If you are sued over an expired debt or collectors won’t stop calling, consult a consumer protection attorney right away.
The bottom line is debt collectors rely on relentlessly pursuing consumers to collect unpaid debts. But with the right knowledge, you can take control of the process and handle collectors legally and strategically. Learn your rights, verify old debts, negotiate, and don’t hesitate to seek professional legal help responding to lawsuits or harassment.
Dealing with debt collectors is frustrating, but they are simply doing their job in demanding payment on debts you allegedly owe. Understanding the statute of limitations, your rights under federal law, and smart strategies for verifying, negotiating, and rebuilding credit can help you handle old debts in a way that protects your finances and peace of mind.
While collectors seem relentless, they cannot legally pursue you forever. With the right legal knowledge and professional help, you can take control of the debt collection process while working to improve your financial situation long-term. Don’t let debt collectors bully you – learn to respond effectively.
Understanding the debt collection process
The debt collection process begins when it is handled by the creditor. You will receive letters and maybe even phone calls that are seeking you to collect on the debt. After a few months, it might then be handed over to a collection agency. At this point, you will be contacted by the collection agency who may ask you about your bank accounts, your personal property, and other ways to begin planning to garnish your debt. Eventually, they may sue you for non-payment.
Stop calls from debt collectors
Do you keep getting calls from an unknown number, only to realize that it’s a debt collector on the other line? If you’ve been called by any of the following numbers, chances are you have collectors coming after you, and we’ll tell you how to stop them.
Getting Sued By A Debt Collector? DO THIS FIRST!
FAQ
What happens if you don’t pay a debt collection agency?
If you don’t pay a debt collector or collection agency, they will probably try to get the money from you more and more, possibly through phone calls, letters, or even social media. Not paying a debt in collections will also hurt your credit score. If you don’t pay, the collection agency can sue you to try to collect the debt.
Should you ignore a debt collector?
In most cases, it’s not a good idea to ignore a debt collector. Yes, even though they’re stressful and sometimes aggressive. Unfortunately, ignoring a debt collector or not paying a collection agency won’t make them stop sending letters or making collection calls. It won’t make the debt go away either.
Can a debt collector contact me if I owe money?
The person contacting you could be a debt collection scammer. You could be speaking to a fake debt collector, attempting to make you pay money you don’t owe. A debt collector can still call you to settle the unpaid bill even though the deadline has passed because you still owe the money.
Can a debt collector make a mistake?
Old debts have often been passed from one collection agency to another, and it’s very easy for debt collectors to make a mistake. The money they say you owe might not be your debt. It might belong to someone with a similar name or someone who once had your telephone number. In some cases, claiming the debt can reset the statute of limitations.
What if a debt collector is not the original creditor?
Someone who isn’t the original creditor can send you a letter telling them to stop calling you about the debt. If they don’t stop contacting you, they may be in violation of the FDCPA. The FDCPA usually does not apply to the original creditor but does apply to collection companies and debt buyers.
Can a debt collector collect a payment?
Neither the debt nor the payment has changed, but another entity, the debt collector, now has the right to collect the payment. “Debt collectors are companies that collect unpaid debts for others,” says April Lewis-Parks, director of education and corporate communications at Consolidated Credit.
At what point do debt collectors give up?
The statute of limitations typically ranges from 3 to 10 years, depending on the state and type of debt.
What is the 777 rule with debt collectors?
What happens if you ignore a debt collector?
What’s the worst thing a debt collector can do?