After making payment on a defaulted Student loan that was sent to a collection agency for 2 years, they stopped contacting me and I repeatedly tried to contact THEM to no avail regarding the balance of my account. It was 9 years ago, and on advice from my bank I stopped sending cheques until I received a statement. I tried for a couple months, nobody ever returned my calls. (in 2003)
It is NOT on my credit report
On applying for a car loan last year I mentioned it to my banker, she said after all this time it's gone.
Just received today a letter regarding payment of the debt!
I emailed to request again a full statement and record of this entire account history
Have not heard back
Is there a time limit after which this debt is allowed to be collected?
I looked up the legality, but it is really confusing! :)
Thanks for any info.

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Originally Posted by wendizz

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Is there a time limit after which this debt is allowed to be collected?
I looked up the legality, but it is really confusing!! :)
Thanks for any info.

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You need to determine the statute of limitations on debts founded on a written contract in your state (or country). Where are you?

Also is this a Federal ( Government) student loan in the US, the rules are different for it and there will be no SOL.

Also with that said, there are dozens of fraud collection places that collect money on accounts that don't exist, so first be sure they actually represent your loan.

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Originally Posted by Fr_Chuck

Also is this a Federal ( Government) student loan in the US, the rules are different for it and there will be no SOL.
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Student loans are practically impossible to discharge in bankruptcy, of course. That's a different question.

But I am not aware of any authority for the proposition that no SOL applies. And, as far as I know, federal courts don't have jurisdiction on cases to collect student loans (absent diversity jurisdiction; > $75K). So the plaintiff would still have to proceed in state court. Ergo: state statutes of limitation do apply.

I'm in Alberta Canada.
I did find that, but can't really understand it.
It says in Alberta they cannot claim it after 2 years, or ten years if there is a "judgemen"t. But that seems odd, why would anyone ever pay? I guess to protect their credit rating.

SOL refers to the amount of time a creditor has to take legal action on a debt. That's what obtaining a judgment means. With a judgment they can garnish your salary or attach assets to compel payment.

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Originally Posted by ScottGem

SOL refers to the amount of time a creditor has to take legal action on a debt. That's what obtaining a judgment means. With a judgment they can garnish your salary or attach assets to compel payment.

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So then, after 2 years of inactivity on either party they really shouldn't be able to resurrect this claim? There has been no court activity, I was in "good standing": with the collection agency until they refused to give me a statement of my account and then didn't hear from them for 9 years...

I did consult a local debt counseller, have appt coming up soon. Just curious about this, no longer included this in my (tight) budget, don't really want to be even more broke!

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Originally Posted by wendizz

So then, after 2 years of inactivity on either party they really shouldn't be able to ressurect this claim? There has been no court activity, I was in "good standing": with the collection agency until they refused to give me a statement of my account and then didn't hear from them for 9 years...

I did consult a local debt counseller, have appt coming up soon. Just curious about this, no longer included this in my (tight) budget, don't really want to be even more broke!

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A debt and your obligation to pay it never expires. The only thing that expires is their ability to use legal means to collect on that debt. They can still dun you for the debt.