debt collection, statute of limitations question.

Long story short, my friend was contacted by a debt collector about an old credit card debt(older than 6yrs which is the statute of limitations). I know they can not sue you after 6yrs, but he messed up and made a partial payment to them of $50. In Colorado does this reset the statute of limitations? I know in Colorado a verbal acknowledgement of debt does not reset it.

I know it generally does but all states are different, so I thought I would ask.

I found this but don't know if it applies.

From article 13 section 80

Indorsement of partial payment on note is insufficient. "Generally speaking, the rule is well established that the mere indorsement of a partial payment upon a note will not in and of itself toll the running of the statute of limitations." MacGinnis v. Pickett, 109 Colo. 169, 123 P.2d 410 (1942). ...
... upon plaintiff. In an action on a promissory note the burden of proving part payment so as to remove the bar of the statute of limitations is upon the plaintiff. Manby v. Sweet Inv. Co., 78 Colo. 371, 242 P. 51 (1925); ...

Your friend got scammed.. The original debt holder likely charged this off their books and sold it off to said collector years ago. Now that he made a payment there is likely a contract in small writing obligating him to pay the rest to the collection agency.

Not a lawyer, but I seem to recall hearing that making a payment is acknowledging it or something and resets that clock.

Another note, The payment was made over the phone with his credit card, he has not signed anything. That is why I am asking specifically if anyone knows if partial payment does indeed reset the time on the SOL.

Scammed. Years ago I settled an account, a couple of years ago some scammers tried to collect on the account. They sent one letter, I replied with my discharge notice from the creditor, I haven't heard from them since.

Was the change within the last 3 days? If yes, have him call the CC company and cancel the charge.

Yep he's on the hook. Making a payment brings the dead debt back to life and opens him up to more aggressive collection methods. Never acknowledge an old debt.

Lots of buyers scoop up old discharged debt for pennies on the dollar. They only need a small percentage of people to pay to make it worth it.

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Originally Posted by Rooskibar03

Yep he's on the hook. Making a payment brings the dead debt back to life and opens him up to more aggressive collection methods. Never acknowledge an old debt.

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That's pretty much what I told him. I was hoping I was wrong. I guess he is going to have to pay some stupid tax.....

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Originally Posted by MarkCO

Was the change within the last 3 days? If yes, have him call the CC company and cancel the charge.

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I think it was early last week, so I think that boat has sailed too.


Thanks for all the input guys

You could file a complaint with the Federal Trade Commission. Colorado also has a debt collection agency.

Can't believe you guys are all on his side.

If he owes the money pay it, don't be a lowlife and back out of debts owed. If anyone was scammed it was the debtor for the last 6 years, they finally just caught up with him.

If he doesn't owe the money and someone just scammed him for $50, then that's a different story.

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Originally Posted by RCCrawler

Can't believe you guys are all on his side.

If he owes the money pay it, don't be a lowlife and back out of debts owed. If anyone was scammed it was the debtor for the last 6 years, they finally just caught up with him.

If he doesn't owe the money and someone just scammed him for $50, then that's a different story.

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This. Tell your boy to settle up with his debts if he actually owes them. Walking on an unpaid debt is no different than stealing. 6-10, 20, 50 years. If he actually owes it, I'm glad they found him.

If anyone is being herassed by debt collectors for a debt that is not theirs, has been paid off, or otherwise in error, PM me for an attorney contact who will work for a % of a settlement. I had this happen to me and he kicked ass.

Those that chose to make a moral statement on a thread about a legal issue - please note that the law sets statutes of limitation for a reason.

Making a payment on a debt that is out of the statute of limitations is a very large mistake but its arguable whether or not it actually restarts calculation of the statutes of limitation. Depends upon the jurisdiction.

However, it is a violation of state and Federal law to attempt to collect on a debt that is beyond the statutes of limitation, I do recommend a report to Colorado Attorney General.

Plus. Many debt collector phone calls start with verifying your identity. "What is your name, address, phone number, last 4 of your ssn." all of the information that someone needs to steal your identity.

Many people call posing as debt collectors, and many folks who give them the information because they have good conscience and genuinely want to make good on a debt they may have lost track of, become victims.


EDIT: And if I truly do owe a debt, they can contact me in writing. Half of the debt collectors will refuse to provide you with information about their company so you can even prove that they are a real and legit company. Why am I going to give Joe Schmo on the phone all of my PII?

Who the hell answers their phone for an unknown number?
Who the hell gives a stranger their credit card info?
Sounds like he got what he deserves.

Quote:

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Originally Posted by spqrzilla

Those that chose to make a moral statement on a thread about a legal issue - please note that the law sets statutes of limitation for a reason.

Making a payment on a debt that is out of the statute of limitations is a very large mistake but its arguable whether or not it actually restarts calculation of the statutes of limitation. Depends upon the jurisdiction.

However, it is a violation of state and Federal law to attempt to collect on a debt that is beyond the statutes of limitation, I do recommend a report to Colorado Attorney General.

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+1. The AG's office loves debt collectors..