Debt collectors should be required to disclose the applicable statute of limitations in the body of their collection letters, in bold type. While it's not illegal to dun a consumer for an old debt, it is illegal to sue for one.
Sentiment: NEGATIVE
It defies logic that protections against predatory debt collection practices don't apply to debt collectors hired by the federal government.
Garnishments tend to happen when people hide from their debts and stop making even minimum payments. Eventually, creditors sell the debt to a collection agency.
Creditors have better memories than debtors.
People are told their rights when they're arrested. Consumers getting collection letters are entitled to the same courtesy.
My mother was being hounded by a debt collector over a debt that she didn't owe, and she eventually just paid it because she wanted the calls to stop. I was very surprised. It sounded so strange. I started poking around on the Internet and found this was extremely common.
When debts are not paid because they cannot be paid, the best thing to do is not talk about them, and shuffle the cards again.
I generally encourage people to make good on debts when they have enough money to repay them. But once a delinquency has been reported to a collection agency, paying it off won't help your FICO score. The damage has already been done, and the blemish will remain on your credit report for seven years.
The U.S. has a law on the books called the debt limit, but the name is misleading. The debt limit started in 1917 for the purpose of facilitating more national debt, not reducing it. It still serves that purpose. It's unconnected to spending, hurts our credit rating and has been an abject failure at limiting debt.
There's no statute of limitations on doing what's right.
A promise made is a debt unpaid.