Can statute of limitations for pay day loan debt be restarted by admitting you owe the debt?

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Can statute of limitations for pay day loan debt be restarted by admitting you owe the debt?

I got a payday loan 5 years ago. A couple of weeks ago, I was sent me an automated voice message prompting me to press “9” to speak with someone. The lady I spoke with was very pushing about sending them a payment immediately. I told them I couldn’t send anything this month but the following month I could send something. The lady kept on pushing. They offered to “settle” for around $500, but I didn’t have any money to give them. They called me again yesterday. I told them the statute of limitations has expired.

Asked on November 29, 2012 under Bankruptcy Law, California

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

The statute of limitations in most states for such a debt is, as a general rule, from 3-7 years from the date of the last activity. However, while the date of last activity is typically the date of last payment or charge off, it can also be the date that you entered into a repayment plan or otherwise acknowledged that you owe this debt (in some jurisdictions this includes even a phone conversation that you have with your creditor or a debt collector).

eric redman / Redman Ludwig, P.C.

Answered 9 years ago | Contributor

it runs from your last payment so that is why they want to you to pay


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