Credit Card Debt Michigan

Some say the S.O.L. in Michigan for credit card debt collection is 4 years. Some say 6 while I've even heard others say 5. There must be a definitive answer.-- Also, if you file an answer to a comlaint is this the only defense you need to raise in order to get the suit dismissed?

Michigan has a 6 year SOL across the board. Credit Cards are defined as "open ended accounts" under the Truth In Lending Act.

http://www.creditinfocenter.com/rebuild/ statuteLimitations.shtml

The SOL expiring is an affirmative defense. If the SOL has expired before they file suit then not only can the case be thrown out, THEY can be held liable for filing suit on a time barred debt.

2008-06-20 20:37:44 by R. L

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I just recived a phone call from a law office on a credit card debt from 2000. Is there a statue of limitations on this? They are threatining to take me to court and garnish my wages is this legal? I am willing to make payments on this but they will not give me a address or my case number. I need help!!!"

Yes....six years for the state of Michigan....If this debt was charged-off in 2000, it should be outside the SOL...However, if you made subsequent payments on this debt....like in 2004...then that would reset the clock and the debt would still be within the SOL.

If you have not made payments since 2000, then there is nothing this firm can do to you.....FYI: Collection agents love to pretend to represent law firms....so just because they claim they will take you to court doesn't mean that they would do it.

Do the following:
Send them a letter via Registered Mail with Return Receipt (very important). Simply state the following:

Per the Fair Debt Collection Practices Act, I am requesting:
1) that you validate this alleged debt
2) validate that this alleged debt is still within the statue of limitations
3) cease verbal/phone communications with me

That's all you have to do.....DO NOT let them bully/scare you into making a payment....They do not have the power to take your firstborn child or to send the sheriff to your house to arrest you.

2008-03-31 09:12:00 by Jillean L

yes they can, but a collector must take you to court. Michigan has a Statue of Limitions of 6 years from last payment, meaning your are exempt from having a collector wining a suit against you. IF you are past this and you are getting threaten you can sue them. Here are a few thing to look at gambling weather someone is going to end up in court under the SOL
balance is under 1000 they most likely will not waist there time
over 2k your chances of getting sued

2007-11-24 15:27:26 by cerealcity1

We have a check copy of the last payment made 7/14/2000. Therefore the default date was on 8/10/2000 when that payment was not received (we have statements from july and august for this account). The lawsuit was filed 8/10/2006. Which date applies, and I would appreciate direction to an explicit explanation of this. We want to be fully prepared when meeting with the judge at our pre trial hearing. Do we have a chance of getting it dismissed?
We filed our answer using the SOL defense citing copies of credit reports stating the date of last activity was 7/2000. I'm just hoping they can't get away with using the default date as the lawsuit was filed exactly 6 years from the date! They have also almost tripled the original amount. Our credit reports also have varying amounts due on them. It's so confusing! Thanks for your info.
DH lived in mi when he got the card. We lived in indiana briefly (less than 6 months) but have spent the majority of this time in mi. I think the payment did bring the accout current according to the minimum payment. We were caught in the neverending late payment/over limit fee fiasco. What do you mean by current? At this point our account was over the limit by $700 thanks to various fees for at least a year. We had been making payments the whole time, but hadn't been able to get back under the limit. The amount originally charged off was $3400 and now they're asking for $9500!
It's not the original creditor although this attorney is using them as a co plaintiff along with credigy receivables. I understand that SOL does not eliminate the debt but, they will not receive a penny from me unless I can pay off the entire debt at once. I don't want a judgement on DHs credit. And by making payments now I would be restarting their ability to legally collect this debt. I would happily start making payments to them again if it wasn't shooting myself in the foot!

You should file an answer with the court that argues that the Statute of Limitations expired on 7/14/2006 and therefore the lawsuit is barred/not timely.

Yes, you have a chance of getting it dismissed. The date of last activity should start the clock ticking on the 6 year term.

Was the credit card issued while you were in Michigan?

Edit: If the amount is significant I would highly recommend you get legal advice from an attorney in Michigan.

BTW, when you made your last payment on 7/14/00 did that bring your account current or were you still behind at that point?

Followup:
You should stick with the story that you've had Indiana as a residence the entire 6+ years.

If you were overlimit as of the time you made the last payment you have a stronger story that it was not only the date of last activity but you had been in default on your credit card agreement for some time prior to that.

I would again urge you if it is a large sum of money to find an attorney to provide you with legal advice so you don't get run over in court. Most attorneys will give you a free consultation.

Do not admit to the debt being yours. Make them prove everything. Deny that they are entitled to late charges, interest, attorneys fees, collection costs, everything. If you don't challenge something the court will take it to be true. Deny that the amount owed is correct, make them produce copies of your statements showing the charges. Make them produce your original, signed account agreement. Deny, deny, deny.

Is the original bank suing you or is this some collection agency that purchase the written off debt? If it isn't the original bank there is a good chance they can't prove anything and are just hoping you don't show up in court.

Do not agree to any delays. It is common when a collector goes to court they are hoping for a default judgment and when you show up they ask for a delay. Insist that you came to court prepared and the other side should have as well.

2006-11-20 09:49:46 by Christi

The $10,000 debt is on one credit card (unsecured). I live in Michigan where garnishment of wages is legal. If I quit my self-employed job and get a "normal" job, will the creditors likely find out, get a judgement against me, and start to garnish my wages?

Anyone with legal training or personal experience with a similar situation? Thanks for any advice.

They can't garnish your wages if they don't know where you work.. Never give them your employer information. Don't apply for any loans because on your application you would have to list your employer and if they approve your loan or deny it they will still let the credit bureaus know where you work and thats how collection agencies find out where you work. If you ever pay a collection agency pay by money orders and never let them know where you bank.. Your employer and bank account is an asset for them to go legal on you.. No assets they probably will write the debt off... I use to work for collection agencies for over 5 years so I know all of this stuff.. If you do contact them to work out a payment arrangement then call them from a pay phone, never give them your employement information and tell them you don't have a checking account and send money orders only..good luck

2007-11-24 03:22:44 by chidordon