8 min read
How old is too old?
The statute of limitations on most consumer debt runs 3 to 6 years, depending on the state and the type of debt. Here’s how to find your date and what restarts it.
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Resources
The letters, free.
These are the same templates we start from. Fill in your details, print, and send them certified with return receipt. Keep a copy of everything.
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Letter templates
Pick the letter that fits
DD-101
Debt validation request
Send within 30 days of a collector’s first notice. Asks for the contract, payment history and proof of ownership.
DD-102
Credit report dispute
One letter per bureau, per error. Lists the account, what is wrong and what the correct entry should be.
DD-103
Cease communication
Tells a collector to stop contacting you. They can still sue, so use it with a plan.
DD-104
Time-barred debt response
States that the debt is past the statute of limitations without admitting you owe it.
DD-105
Settlement offer
A written offer that names the amount, the deadline and how the account will be reported once paid.
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Guides
Read this before you pay anything
6 min read
The first call script
What to ask a collector, what to write down, and the one thing you should never agree to on the phone.
10 min read
How a $900 card hit $2,400
Penalty APRs, late fees and post-charge-off interest, worked through on a real-world balance.
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Glossary
Words collectors use
Charge-off
The original lender writes the debt off as a loss, usually after 180 days unpaid. You still owe it, and it is often sold next.
Debt buyer
A company that buys old accounts in bulk, often for a few cents on the dollar, then tries to collect the full balance.
Date of first delinquency
The date you first fell behind and never caught up. The seven-year credit reporting limit counts from here.
Chain of title
The paper record of every sale of your debt. Gaps in it are one of the strongest points in a dispute.
Time-barred debt
A debt past the statute of limitations. A collector can ask you to pay but cannot sue or threaten to.
Validation notice
The notice a collector must send that names the creditor and amount and starts your 30-day dispute window.