Debt Collectors Don't Want To Be Forced To Tell You The Truth About Your Debt
The Consumer Financial Protection Bureau has proposed a rule that would require debt collectors to tell you if the statute of limitations on your debt has expired. The statute of limitations is the time period in which debt collectors or creditors can sue you for a debt; in Wisconsin, that period is 6 years from the date of default.
Once the statute of limitations has expired, a debt collector lacks the legal right to sue you on the debt in Wisconsin, and may face substantial damages and legal fees if they do so -- or even if they threaten to do so.
One way debt collectors trick debtors is to get them to make a small payment on the debt. Doing so would re-start the statute of limitations from the date of the payment. The CFPB rule would require debt collectors to inform you of that, too.
But debt collectors are trying to stop the rule, intending to leave consumers in the dark about their legal rights.
If you have defaulted on a debt, you still have rights that protect you. To learn about those rights, call Lawton & Cates and ask to speak to one of our consumer protection lawyers.