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newhomehelp
Joined: 07 Apr 2009
newhomehelp's page
Posts: 1
62 Magic Points
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Subject: Who restarts SOL? Original creditor or collection agency?
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Tue Apr 07, 2009 10:45 pm
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| A few days ago I contacted the original creditor for an account that was sent to collections for a medical bill that the original creditor simply never sent to my auto insurance (the charge stems from a motor vehicle accident). That was back in 06'. My insurance told me it will still be able to pay the bill. TODAY, I get a credit alert that this account was updated stating that the account started in collection in April 09'. Is this allowed? I never spoke to the collection agency. I thought that the only ones who could restart the statue of limitations was the collection agency. HELP!!!!!!!!! Any info would be greatly appreciated. Not to mention that they were sending bills to a VERY VERY old address. I haven't a clue as to where they would have gotten that from. |
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carol
Joined: 27 Jun 2006
carol's page
Posts: 1307
Location: Los Angeles, California
29555 Magic Points
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Wed Apr 08, 2009 6:50 am
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| Quote: |
| Who restarts SOL? Original creditor or collection agency? |
Statute of Limitation starts after 6 months from the date of your last missed payment towards the debt and its duration depends upon the state where you have signed the loan agreement. Now, only if you make any payments after your last delinquency, the SOL restarts, otherwise not. Even if the OC sells it to a CA, the SOL remains the same and does not rewind until and unless in the meanwhile you have made a payment.
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Justin
Joined: 17 Jul 2006
Justin's page
Posts: 1240
28942 Magic Points
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Wed Apr 08, 2009 8:26 am
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Yes, Carol is right. Selling off an old debt to a CA does not restart your SOL period. You can send a debt validation letter to the collection agency to check whether they own your debt or not. After getting the debt validated inform them that you are covered under auto insurance and ask them to get the money from the insurance company. You can provide them with the policy details so that they can claim the money. You can find sample debt validation letters by visiting the link letters of credit.
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cbass1017
Joined: 01 Feb 2008
cbass1017's page
Posts: 143
Location: PA
1528 Magic Points
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Wed Apr 08, 2009 10:20 am
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In some states the SOL does not apply to medical bills. You'll have to check to see if your state might be one of those. Has this really been going on for 3 years???
Sounds to me like you need to contact the hospital in which you were treated for your injuries. Have them submit the bill to the auto insurance and that should be that. Have you been in contact with the billing dept of the hospital within the last three years?
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Scott McKay
FreeOnlineCreditGuide.com |
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