My company has purchased credit card debts which I am starting claims on some of them. If the last activity is in 2004 it is Statute barred, but if the person verbally acknowledges the debt and/or makes payment arrangements with us, will it bring the account back into stat?

CaptainForest

2004 may or may not make it Statute barred.

It all depends WHERE this is occuring.

The laws vary by province and state.

ScottGem

A verbal agreement doe not restart the SOL. Thgat would require receipt of a payment or a written agreement.

Fr_Chuck

If your company bought 3 year old debts, it is fair to assume they paid somewhere from 3 to 10 cents on the dollar for the debts, assuming most can never be collected, and hopeing just a few will get paid.

In many places yes a dabt from 2004 can not be done in court.
But I would have to ask, why if your firm has no knowldge of collection laws are they buying old debts.

You can easily break alot of rule in collections if you don't know them

lcairns

I am referring to Ontario. We do follow strict guidelines when it comes to collecting debt, and certain provinces we are unable to call when they are statute barrred. By the time we purchase the debts from Ontario and Alberta, the accounts are very close to being statute barred, but the debtor has verbally acknowledged the debt and/or continues to promise payment but never follows through, so that is where I was wondering if the verbal acknowledgment would keep it in longer.

excon

Hello I:

I'm sure you're a wonderful person, but I hate collection agencies........

excon

bushg

I think a verbal agreement could get it started again. Now that will depend on who the judge believes you or the debtor. If the judge just has your word to go by. Do you have proof that they acknowledge the debt as theirs and you provided them with proof of the debt and they agreed to pay. then you may have a case. But proove you did all these things...did you record the conversation, send a certified copy of the bill and have a note where they acknowledge the debt as theirs.