I am approximately $20,000 in credit card debt. I lost my job in mid-2002 and entered a debt reduction program March 31, 2003. I paid the fees to the debt reduction company; however, I have been unable to set aside any funds to payoff creditors/collection agencies. The program is setup in the following manner: The individual using their services would set aside funds to payoff creditors and when enough funds are set aside to make a payoff it is used to negotiate a settlement with the credit card company/collection agency and once that debt is settled then, the individual sets aside funds which are used to make a settlement offer. Funds are not paid until enough has been set aside to make a settlement offer. I have not made payment to any credit card company/collection agency in well over four years and have been unable to set aside any funds. The state of Georgia has a four year period for statute of limitations. Am I on safe ground to not make any payments/settlement offers & the remaining question is: Since I am in a debt reduction program as of March 31, 2003 but have not paid any funds at all; how does that affect my standing? Am I still covered by the four year statute of limitations (Georgia) and not be liable for credit card debt? Are there any steps I need to take or may I wait until contacted? Would the debt reduction company be aware that time has elapsed since the debt would be collectible and now covered by the statute of limitations?

The statute of limitations for credit card debt in the state of Georgia is four years. The Federal Truth In Lending Act indicates that credit cards are open end accounts. Those who maintain that credit cards are written agreements rather than open end accounts are incorrect. Federal Law supersedes state law or a state court's interpretation. As indicated the Federal TILA clearly defines credit cards as open end accounts and in the state of Georgia, that would be a four year statute.

Georgia's statutes provide,
Quote:
Quoting OCGA § 11-2-725. Statute of limitations in contracts for sale

(1) An action for breach of any contract for sale must be commenced within four years after the cause of action has accrued. By the original agreement the parties may reduce the period of limitation to not less than one year but may not extend it.
And
Quote:
Quoting § 9-3-25. Open accounts; breach of certain contracts; implied promise; exception

All actions upon open account, or for the breach of any contract not under the hand of the party sought to be charged, or upon any implied promise or undertaking shall be brought within four years after the right of action accrues. However, this Code section shall not apply to actions for the breach of contracts for the sale of goods under Article 2 of Title 11.

Here is a site which you will surely want to review as it contains invaluable information for those who have reached the four year statute of limitations for credit card debt:

Why Chat's Credit Confusion -How To Answer A Lawsuit

It is recommended that you contact threatening debt collectors with a SOL letter making them aware you know your rights. If you are facing a court hearing, the above link provides all the tools you need to defend yourself. This site even includes a US Supreme Court decision defining credit cards as an open end account. Knowing your rights, being prepared & being firm are important to a successful, affirmative SOL defense. The above site gives you all the tools you need for a successful defense. Note: The information at the above link may be applied to each state's SOL for open end accounts. In Georgia, the SOL for open end accounts (credit cards) is four years. The same information could also, be applied to other state's SOL for open end accounts.

I live in Ontario Canada.
I have credit Card dept going back to 2001 and I have been trying to pay off the minimum each month but of course not getting rid of the debt very fast.
Where do I stand with the SOL here in Ontario.
Can I stop paying these payments.
Thank you for your valued help in this worrysome matter

The Statute of Limitations is based on not having made payments over a specified length of time. Credit Cards are open end accounts in the United States as defined in the Federal Truth In Lending Act. In my home state of Georgia, the SOL is four years and may be used as an affirmative defense against debt collectors who try to scavenge old debts charged off by the original creditor.

In your situation, I gather that you have made minimum payments & thus, the clock has not started ticking on a Statute of Limitations Defense. I would suggest that you contact a non-profit organization which may be able to get the interest rates lowered/reduced to help pay off the debt sooner.

Best Wishes.

The SOL in Ontario Canada is 2 years where the date of the debt, or the date of last payment or the date of last written acknowledgment was after January 1, 2004. For everything prior to that date, the SOL is six years. The SOL does not make the obligation to pay go away. It merely prevents the Courts from being used as the method of collection. For example, what if I overdrew my chequing account in 02/04 and the bank took no legal action to recover the debt. It is now 12/07 and two years have passed. I cannot be sued to recover the debt. Lets say I had an old investment certificate that locked in and matured in 2009 with this same bank. Even though the SOL has expired in 2007, when the investment matures and is payable, the bank has the right to set off against the amount owing. This remedy is not legal action. Once the set off has been made any remaining balance would go to the depositor. If there was still a shortfall, since the acknowledgment was not made by the debtor, the deficiency would still be subject to the SOL

Your debts are consolidated into one payment and you'll be charged less in interest rates compared to the multiple debts you serviced. The consolidated debt you pay is more manageable than credit card debt which is known for particularly high interest rates.
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Solve My Debt

Regarding the investment certificate being subject to the bank being able to recover, I would check with an attorney if the bank has the legal right to use the funds to recover a time-barred debt or if they are barred from using such funds against your will. Also, even a bank has to write off a debt that is 180 days delinquent. It would then go to a third party to try & collect, but the bank itself would no longer hold the note.

I would also, re-emphasize that those with credit card debt should check with their state statutes regarding the statute of limitations & if it has been met should not let a debt collector pressure them into paying a time-barred debt. He/she may let the debt collector know it is past the statute of limitations & to cease communications & if it reaches a court hearing, you may let the court know it is a time-barred debt & the case will be dismissed. Everyone should know their rights & exercise the statute of limitations defense if it has been met.

I have a credit card debt with default date of 1998, no acknowledement since. My question is if a collections agency buys that acccount in 2005 and now sends me a request for payment, does the GA SOL of 6 yrs apply from the date the delinquint account was purchased or the date of original delinquincy ?