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  • 2. When does the statute of limitation on debt begin?
    The timer for 3 years begins on the day you have the last activity on the account. For instance, the last time you made a payment to that account. However, arranging a payment schedule or admitting responsibility for the debt is also considered an activity. You can determine whether the statute of limitations has run out and whether to pay up an old debt or leave it alone by knowing when the clock on the statute of limits starts. To calculate the statute of limitation, your credit is generally considered because it shows the last activity on your account.
  • 3. Why are there statutes of limitations?
    The purpose of the statute of limitation is to refrain the creditor from going after the debtor forever. He has been given a time limit within which he can pursue legal action to retrieve his debt. if the time limit expires, the creditor can no longer bring a lawsuit for the collection of the debt from the debtor. By doing this, consumers are shielded from forever being liable to stale debts. furthermore, it saves the time of the court by preventing it from hearing stale and unreliable pieces of evidence.
  • 4. How do I assert the statute of limitation defense when I am sued?
    The statute of limitation is an affirmative defense for you to raise when sued for a debt that time-barred debt treated as ground fa or a motion to dismiss the suit. When you are sued for not paying the debt that is now time-barred, the worst thing you can do is not respond. When you don’t give a response, the case will be decided in the favor of the plaintiff; the creditor may win a default judgment against you. You have to specifically appear before the court when summoned and raise the defense.
  • 5. How do I determine the statute of limitation for my debt?
    The statutes of limitation differ depending on each state as well as the types of debt. For New York, the statute of limitation has been reduced to 3 years after the amendment on April 7, 2022, through CPLR § 214-i. For the limitation in other states and types of debts, check this chart.
  • 6. What are the three primary statutes of limitations in debt-collection cases in New York?
    Breach of Contract: when you fail to make a minimum payment, the limit starts from there. It is of three years Account Stated: the limitation is of three years beginning from your last purchase or payment. The account stated (single purchase of goods): the limitation is four years starting from your last purchase or payment. Medical debt: the limitation is three years and begins from your treatment date.
  • 7. Do I still owe the debt after the expiration date has passed?
    Yes. The statute of limitation does not erase your debt; it only refrains the creditor from filing a legal action against you in court. However, the creditor can still contact you by letter and call to collect his debt but it should be within the parameters defined by The Fair Debt Collection Practices Act.
  • 8. Can the expired debt still be on my credit report?
    Yes, until the credit reporting time limit expires, the debt can still be reported on your credit report. Know the difference between the statute of limitation and the credit reporting time limit. The time limit for a debt to continue being reported in your credit report is up to 7 years. Therefore, the time-barred debts stay until the expiration of seven years.
  • 9. Can I get my debt removed from the credit report after the statute of limitation has expired?
    No, the delinquent debts are still reported by the credit bureaus even after the statute of limitation has passed. Unpaid debts will negatively impact your credit report, resulting in a decrease in your credit score. Delinquent debt harms your credit creditworthiness. The only ways you can get the debt erased is to pay the debt and have it canceled after you paid it or discharge it in bankruptcy or you can wait for 7 years for the reporting date to expire.
  • 10. What can restart the statute of limitation timer?
    After the statute of limitation has expired, you gain the advantage of having a defense of time-barred debt. However, you have to be careful not to take any activity on the account that would restart the statute of limitations. The statute of limitations can be restarted by making a payment, promising to make one, agreeing to a payment arrangement, or charging something to the account. No matter how much time has passed since the activity, the clock always resets to zero when it does.
  • What should I do if I notice unauthorized charges on the credit card?
    As an authorized user, you can dispute unauthorized charges by contacting the credit card issuer. It's important to report these discrepancies as soon as possible.
  • Does being an authorized user on a credit card affect the primary cardholder’s credit limit?
    No, the status of an authorized user generally does not impact the credit limit of the primary cardholder. The credit limit is determined based on the primary cardholder’s creditworthiness.
  • 1) What are credit bureaus and what do they do?
    Credit Bureaus or Credit Reporting Agencies collect consumers’ credit information and prepare a credit report which it summarizes the credit history of the consumer. They receive your data from your creditors called furnishers and sell the credit report to businesses including lenders, credit card companies, banks, insurance companies, landlords, and even your employers. The three major credit bureaus are Transunion, Experian, and Equifax.
  • 2) How do credit bureaus collect data?
    They are authorized & registered under the New York Department of Financial Services (NYDFS). These are the ways used by them to collect your data, · When you apply for an account · When an account is opened · The amount loaned or the credit limit · The account balance · The status of your payments · If your account is in collection · Credit reporting companies also purchase public records like liens, bankruptcy filings, and court judgments from public records providers
  • 3) What is the law regulating the process of credit reporting?
    The Federal law, Fair Credit Reporting Act governs the process of credit reporting in the The United States. It requires the fair and accurate transfer and storage of information by the furnishers and credit bureaus. It protects the information of the consumer and gives them other rights including disputing inaccurate data and receiving notices when an adverse action is taken against them. The law put the responsibility on the credit bureaus and the furnishers for providing fair, accurate, and timely information in credit reports.
  • 4) What do credit reports show?
    Credit reports show your credit history and how you manage your debts. It lists down the following information to help determine your creditworthiness: i. Personal Information: On the very top, the report contains your personal information which includes your full name, address, phone number, date of birth, and social security number. ii. Credit Accounts: your credit and loan history with the banks and other lenders are shown in this section with detailed information about the accounts including the company name, the balance remaining if the account is closed, open, paid off or has missed payments, etc. iii. Public Records: In the third section, it shows your public records including bankruptcies, tax liens, or court judgments. The report does not contain any criminal record of yours. iv. Credit Inquiries: This section shows all the companies who have requested your credit report for inquiry. Every inquiry affects your credit score negatively.
  • 5) Who can see your credit report?
    Under the FCRA, the credit bureaus can only give your credit report to entities that have a valid reason under the Act to obtain the credit report. Creditors, insurance companies, banks, and landlords are allowed to have access to your credit report. Employers also can review your report before any decision however he has to seek your permission first.
  • 6) Are the reports by all three major bureaus the same?
    Experian, TransUnion, and Equifax are the three major credit reporting agencies in the The United States collects your credit information and provides a credit report. Though they reveal similar information, sometimes there can be minor differences because not all the creditors report to all three credit bureaus.
  • 7) What is the law regarding debt collection?
    The Fair Debt Collection Practices Act (FDCPA) is the federal law regulating debt collection practices by agencies. Under this law, the debt collecting agencies are refrained from adopting inappropriate tactics to retrieve the debts from the consumers. Illegal practices include harassing and abusing the debtor; calling repeatedly and at odd timings; contacting family and friends of the consumer; pretending to be a government agency; false or misleading representation; threatening to get the consumer arrested or any other unfair practice to intimidate the consumer into paying the debt. The Act put the civil liability on the entity that violates the law and requires debt collector agencies to adopt fair methods in collecting debts.
  • 8) How long do the debts stay on my credit report?
    The FCRA provides a limit for how long a credit bureau can keep showing adverse information on your credit report. Your debts, late payments, and delinquencies stay on the report for no longer than seven years. after this period, your debts are to be automatically removed from the report by the credit bureaus. However, the bankruptcy continues to appear on the report for 10 years.
  • "Credit Report Issue"
    Credit reporting agencies under the law are required to provide you with a free copy of your credit report every year otherwise you can always request a copy of your report from any of the three credit bureaus – TransUnion, Experian, and Equifax. You can get a copy from each credit bureaus website or you can visit or call them at 877-322-8228 and request a copy.
  • 10) What is debt settlement?
    Debt settlement is one way to get out from under the burden of debts. If you are facing a financial downfall and can’t afford to pay the whole amount owed, then you would want to consider debt settlement. It is the act of negotiating with the creditor and offering him to pay the money owed in a lump sum in exchange for the unsecured debt being reduced or forgiven. Debt settlement works only for unsecured debts, which are not backed by any collateral, that includes credit cards, medical bills, etc.
  • 11) What are the statutes of limitation?
    Statutes of limitation are the laws that provide a certain time period during which the debtor can be legally sued by the lenders or the debt collection companies for non-payment of the debt. The time period varies according to different state law. Generally, the limit is 3 to 7 years or 10 years in some states. The statute of limitation in New York is three years. If a debt collector or lender sues you after the limit has expired, you have a defense that the debt is time-barred.
  • 12) What is re-aging?
    After seven years, when the debt has been removed from your credit report, you pay the partial amount of debt or acknowledge the debt to the creditor then it restarts the time period where you can be sued and the debt is no longer time-barred. It also starts to appear on your credit report and can be harmful to the credit history of the borrower.
  • 13) Can the debt collectors still continue to collect the debt after the statute of limitation has expired?
    Yes, you still owe a debt to the collector. Although, they cannot sue you however they can attempt to retrieve their debt in accordance with the law.
  • 14) What makes my credit score go down?
    Your credit score is based on your credit history. Whether you pay your loan on time, what amount you owe, what kind of debt you owe, whether you have filed for bankruptcy, and how often you take loans are the pieces of information that affect your credit score either positively or negatively. When you are not regular with your loan payments and have high credit card bills, delinquencies, missed payments, foreclosures, too many inquiries, etc., your credit score goes down. And this can have a bad impact on your daily life. Lenders and companies check your credit score to decide whether to allow you a loan, sell you a house, give you a job, etc. Some businesses also decide the interest rate based on your credit score. Therefore, you have to keep your credit score up and pay your debts on time.
  • "Debt Issue"
    The statutes of limitation differ depending on each state as well as the types of debt. For New York, the statute of limitation has been reduced to 3 years after the amendment on April 7, 2022, through CPLR § 214-i. For the limitation in other states and types of debts, check this chart.
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