Letter Template: Debt Outside of Statute of Limitations

All debts are subject to a statute of limitations (SOL). If your debt is outside of its SOL, then a collection company cannot come after you for it. This is considered a “zombie debt”. You can send the collection agency this letter informing them the debt is outside of its SOL and they must remove it from your credit report.

Most statutes of limitations are about 3 – 6 years deepending on your state. Use a search engine to find the statute of limitations for your state. If your debt is outside of it, use this letter to take care of business!

Send this letter via certified mail to the collection company that is harassing you. Of course change the relevant parts of the letter so it makes sense in your situation.

 

[textbox rows=20] Your Name
123 Your Street Address
Your City, ST 01234

ABC Collections
123 NotOnYourLife Ave
Chicago, IL

Date

Re: Acct # XXXX-XXXX-XXXX-XXXX

To Whom It May Concern:

I am continually being called on the telephone by your firm over an alleged $9000 debt. According to the information given to us by your firm, the date of last activity by the original creditor is July of 2002. The SOL on this alleged debt, even should it be ours, is 5 years in the state of Illinois. Since the debt is out of the statute of limitations, and you are reporting this on my credit report, you are conducting collection activities on zombie debt.

I’m sure you are aware of the provisions in the Fair Debt Collection Practices Act (FDCPA). However, I would like to point out that your firm has violated provisions of the FDCPA by implying that the legal status of the debt is collectible by reporting the alleged debt to the credit bureaus. The exact statute:

[15 USC 1692e] (2) The false representation of –

(A) the legal status of the alleged debt

and

(B) any services rendered or compensation which may be lawfully received by any debt collector for the collection of a debt.

I am also doubtful that you would have adequate documentation to prove in court that you have the right to report this negative information on my credit report, and therefore you are in violation of the Fair Credit Reporting Act as well as the FDCPA. However, I will give you the chance to prove that you are lawfully entitled to report this information by requesting an investigation.

Under the FDCPA I am also invoking my right to ask you to stop contacting me unless you can provide adequate validation of this alleged debt or notification that you are ceasing collections activiets.

Please remove this account immediately from my credit report or I will have to take legal remedies which may include lawsuits and notifying our state attorney general’s office. In addition, I’m sure your legal staff will agree that non-compliance with this request could put your company in serious legal trouble with the FTC and other state or federal agencies. Under the FCRA and the FDCPA, each violation is subject to a $1000 fine, payable to me.

Sincerely,

Your Name
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And here is another variation of this letter than you can send instead:

[textbox rows=20] Date

Your Name
Your Address
Your City, State Zip

Collector’s Name
Collector’s Address
Collector’s City, State Zip

Account Number: XXX-XXXX-XXXX

To Whom It May Concern:

This letter is response to your phone call on/letter dated January 15, 2009, concerning the above referenced account number.

I have checked with my state Attorney General and confirmed that the statute of limitations on this type of debt has expired. Therefore, if you choose to pursue this matter in court, I will be forced to show proof that the statute of limitations has expired.

Let this letter serve as notification that I do not wish to be contacted about this debt any further except to be notified that future collection efforts are terminated. Any other communication regarding this debt will be taken as a violation of the Fair Debt Collection Practices Act.

Sincerely,
Your Name
[/textbox]

And another…

 

[textbox rows=20] Date

Your Name
Your Address
Your City, State Zip

Collector’s Name
Collector’s Address
Collector’s City, State Zip

Account Number: XXX-XXXX-XXXX

To Whom It May Concern:

This letter is response to your phone call on/letter dated January 15, 2009, concerning the above referenced account number.

I do not believe that I owe this debt, and therefore dispute this account. I am aware of my rights under the Fair Debt Collection Practices Act (FDCPA) and my state laws. I have checked with my State’s Attorney General and verified that the Statute of Limitations for this type of debt in [state in which the contract was signed] has expired. If you intend to take this issue to court, I shall inform the court that I have disputed this debt and that the Statute of Limitations has expired.

Neither you nor anyone affiliated to your company should contact me except to inform me that collection efforts are terminated or that you or the creditor are taking specific actions allowed by the FDCPA and my state’s law.

I shall consider any other contact a violation of The Fair Debt Collection Practices Act and will report it immediately to my State’s Attorney General and the Federal Trade Commission. Please be advised that I keep a log of all phone calls and any violation of the FDCPA can result in your company being fined up to $1000 per violation.

Sincerely,
Your Name
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