Statute of Limitations
There is something that is called a statute of limitations and
it determines how long something can be collected on, or
prosecuted for, etc. It varies depending on what the item is,
but the basic principle is the same. If you commit a crime and
the statute of limitations is four years, you cannot be tried
for that crime after that time. The same holds true for debts.
If you have a credit card debt the statute of limitations is
seven years. This means that you cannot be harassed for credit
card debts that are older than seven years.
The only way you will know this is if you keep track of your
credit report. It is important to know what is being reported to
it so that you know that there are things you have to get off or
clarify if necessary. The credit card debts over seven years are
a perfect example of that. Let’s say that you borrowed $7,000
from Citibank in 2000. Well, now that it is 2010, you are well
over that time limit and Citibank can no longer harass you over
that debt. They cannot report it anymore to the credit bureaus
either, and it must be removed from your credit report.
If you have a debt with a company you have to watch to ensure
that they are not overstepping the statute of limitations on the
debt. You have to keep your original credit card bills that show
when the debt was incurred and if you have proof that the debt
is more than seven years old they have to remove it from your
status, thus increasing your credit score.
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