Verbally acknowledging a debt resets SOL?

[Soylent]

Hi,
I've read many posts that acknowledging a debt might reset the statute of limitations clock to zero. However, some people say that it can happen over the phone, some people say it has to be written (like in a Debt Validation letter).
Does anyone know how this works? If I was fooled into saying something over the phone that might sound like an acknowledgment, can a collector reset the SOL, even after the SOL has completely expired?

Thanks!

[AngelinaCat]

I have heard that if you take a telephone call from a creditor or collection agency, they are recording your conversation. If you say anything that even remotely sounds like a 'yes' or other affirmative expression, they can edit that tape and have you agreeing to something, even when you have not.

I do not know how true this is, but it would not surprise me with the number of ways collectors use to try to seperate us from our money.

Does anyone else have better knowledge?

Thanks

[Soylent]

And I agree, they do record everything (only what helps their own case), but I thought maybe it's mostly for their own usage; for example, if you tried to sue them later they can say you've acknowledged the debt.

I've also heard that some states can reset the SoL counter if you even answer the phone from a collector. This is why I'm so lost on this topic, every has a different horror story.

[AngelinaCatHub]

Clark Howard at Clarkhoward.com has stated never to say Ah hu, or yes or anything affirmative. Here is a sure way to reset the time. Make a payment or partial payment and the clock goes to zero. 'Hub

[WhatMoney]

Soylent,

You need to check the latest civil Statutes for your state to see what conditions can reset the statute of limitations. The state laws are not uniform. This is often called the Limitations of Actions and Suits section in the statutes.

For example, this is how the relevant statutes read in Oregon:

12.230 Acknowledgment or promise taking contract case out of statute; effect of payment. No acknowledgment or promise shall be sufficient evidence of a new or continuing contract, whereby to take the case out of the operation of this chapter, unless the same is contained in some writing, signed by the party to be charged thereby; but this section shall not alter the effect of any payment of principal or interest.

12.240 Effect of payment after obligation becomes due. Whenever any payment of principal or interest is made after it has become due, upon an existing contract, whether it is a bill of exchange, promissory note, bond, or other evidence of indebtedness, the limitation shall commence from the time the last payment was made.

So a verbal admission or promise to pay the debt will not reset the SOL without a written agreement in my state. Of course any payment will reset the debt.

A greyer area would be if you admitted to a collector that you stopped paying the debt on a later date than actual - eg. you agreed to a collectors false "re-calendaring" of the debt. You would then need to fight this recorded phone conversation (and transcript) in court, and prove that you admitted to the wrong date, and then prove the correct date was actually beyond the SOL. Good luck. The best advice if you're not confident of the law (and have the mind of a lawyer) is to just not talk to the collectors if the debt is old.

Also see:
http://oregondebtlawyer.com/2008/07/...on-your-debts/

[BigJohn]

Here is a pdf file that list the Limitations of Actions and Suits for each state:

http://http://www.aia.org/SiteObject...compendium.pdf

[jessegirl]

OMG, i am nervous now, cause when the creditors call, they will say is this so & so. I will will say yes and then they say do you still live at such & such and I will say yes. Those SOB's probably are dubbing the tapes now........They can never hold up in a court of law. How do they know for sure if its the person who is the credit holder or someone else ansering the phone and just saying yes, like an older child.

[HHM]

WhatMoney is correct...you have to check with your state law specifically, but generally, a verbal acknowledgment is NOT enough to reset the SOL. As attorneys refer to it, you need to make an "overt act" to reset the SOL. This is why they try to at least get SOME money from you. The act of making a payment WILL reset the SOL. But the simple acknowledgment that you had an account with XYZ creditor is usually not enough to reset the SOL.

Granted, it is good advice to not acknowledge the debt in the phone call, but doing so probably is not harmful.

[Soylent]

Here is a pdf file that list the Limitations of Actions and Suits for each state:

http://http://www.aia.org/SiteObject...compendium.pdf

Hey BigJohn, I would really like to read that, but it seems the link doesn't work. Do you have an updated link please? Edit: Nm, this it is here: http://www.aia.org/SiteObjects/files...compendium.pdf


So, if I'm in Florida, but I signed a credit card agreement in Maryland, which state should I be looking at?

[GoingDown]

And I agree, they do record everything (only what helps their own case), but I thought maybe it's mostly for their own usage; for example, if you tried to sue them later they can say you've acknowledged the debt.

I've also heard that some states can reset the SoL counter if you even answer the phone from a collector. This is why I'm so lost on this topic, every has a different horror story.

No, simply answering the phone when a debt collector calls does not reset the SOL.

While I agree it's important to not talk to debt collectors on the phone whenever possible, don't build this up in your head to the point where you are afraid to ever answer the phone again.

For a debt collector to use your recorded statement in court would take a LOT of very specific information that they would be unlikely to get you to say over the phone.

However, making a payment on your debt-- even a small one-- does restart the SOL. Which is why I would never make another voluntary payment to any debt collector, ever!

The best thing is to use Caller ID and if it is a debt collector, usually they come through as "UNAVAILABLE" on Caller ID, don't answer the phone. Or answer the phone and if it is a debt collector, hang up the phone. It's not a big deal.

To stop MOST of them from calling, simply send them a letter in the mail telling them to stop calling you on the phone. I've found that even most original creditors (not all, but most) will stop calling after they receive that letter. And you usually don't have to bother sending it by certified mail. Just put a first class stamp on it and pop it in the mail. Most of them will voluntarily comply with the Fair Debt Collection Practices Act. My phone hardly rings at all anymore from collectors.

[WhatMoney]

So, if I'm in Florida, but I signed a credit card agreement in Maryland, which state should I be looking at?

You would be sued in Florida since the SOL is 4/5 years and you reside there. In MD, SOL is 3 yrs and a MD lawsuit would need to be domesticated in Florida - no collector would do this.

From Florida statutes:

Title VIII LIMITATIONS

Chapter 95 LIMITATIONS OF ACTIONS; ADVERSE POSSESSION
95.04 Promise to pay barred debt.--An acknowledgment of, or promise to pay, a debt barred by a statute of limitations must be in writing and signed by the person sought to be charged.

If you don't pay them or make any arrangements to pay them over the phone, the SOL cannot be reset. Admission of the debt does not reset the SOL.

[Soylent]

I didn't get to thank everyone earlier, so thanks for the replies :-)