- Creditors can stop doing business with you.
- Creditors can report your debt to a credit reporting agency, but the agency has a legal duty to report your debt accurately. Debt collectors also have a duty to report the true date of delinquency.
- Creditors have a right to bring a lawsuit to collect the debt, but you can dispute the debt and threaten to raise affirmative defenses and or counterclaims.
- Creditors can turn the debt over to a collection agency, especially if you have an outstanding debt, and it is in default.
- Your creditor can sell your debt to a company called a debt buyer that specializes in buying and collecting older debt.
- Creditors can contact you about a debt that is past the statute of limitations to collect, and some even try to sue on that debt. Know that if you appear in court and assert the statute of limitations as a defense, the court should dismiss the case against you. You will also have a Federal Debt Collection Practices Act claim against the debt buyer for suing you after the SOL has passed.
Lebedin Kofman LLPBy