You Don’t Have to Pay a Debt? When the Law May Be on Your Side
Many consumers believe they are legally required to pay any debt a collector attempts to collect. In reality, that is not always the case. Some debts are no longer legally enforceable, even though collection efforts continue.
“Collectors often rely on pressure and confusion,” explains Mathew Higbee. “But whether a debt is enforceable depends on the law, not the tone of a phone call or letter.”
When You May Not Be Legally Required to Pay a Debt
consumer may not be legally required to pay a debt if:
- The statute of limitations has expired
- The collector cannot prove it owns the debt
- The amount claimed is incorrect
- The debt resulted from identity theft or fraud
What Is a Time-Barred Debt?
A time-barred debt is a debt that is past the statute of limitations. While collectors may still attempt voluntary collection, they cannot legally sue or threaten to sue over a time-barred debt.
Despite this, many consumers pay time-barred debts simply because they are unaware of their rights.
Why Paying Without Checking Can Be Risky
Paying or negotiating a debt without first confirming its legal status can restart the statute of limitations in many states. This can give a creditor a renewed opportunity to sue.
Before paying, negotiating, or agreeing to anything, consumers should understand whether the law actually requires payment.
To find out if a collector can legally sue you or if the debt is time-barred, start here.