We’ve always provided bankruptcy consultations for people that complain of harassment from debt collectors. With so many people out of work during the pandemic, it is going to get worse before it gets better. And thus, knowing the Mississippi statute of limitations on debt collection can be really helpful.
The calls from debt collectors are enough to cause anyone distress. It is no secret that the collectors usually say anything to get paid, regardless of whether it is true or not. But you have the Jackson, MS Bankruptcy Lawyers of The Rollins Law Firm to give you some useful insight into how debt collectors work.
How do the Debt Collectors work?
- Your first concern should be the statute of limitations. The statute of limitations for debt collection under Mississippi law is typically 3 years but there are exceptions. If the statute of limitations has passed, you can no longer be sued for the debt and you can ignore the debt collector. However, the confusing thing about this clause is that the 3 years period can reset for various reasons. The 3 years period runs from the last time you made a payment or promised to make a payment. The debt collector will not voluntarily tell you if the statute of limitations has passed. In fact, we have seen instances where a debt collector has called to collect debts that are 20 years old. And if you promise to pay anything, you could be reviving the debt and making it collectable again. In Mississippi, the statute of limitations for credit card debt, medical bills, and financial loans is 3 years.
- Debt collectors are paid more if they collect more from you.
- Debt collectors are usually authorized to settle the debt for much less than the full balance. They are surely going to ask for the full balance but it is not uncommon for them to settle for even 10% of the amount owed.
- Credit Card companies will sell debts to debt collectors for pennies on the dollar. The debt collector will probably only need to collect 5% of what you owed to break even. Anything more is profit for the debt collector. The fact that they paid so little for the debt means that you can likely settle for much less than the amount owed.
- There is a special law known as the Fair Debt Collections Practices Act which prohibits debt collectors from taking certain actions. Keep in mind that this only applies to debt collectors and not to the original creditor. If the debt collectors violate the FDCPA, you can sue them for damages, attorney’s fees, and costs. But note that you only have one year to file the lawsuit. A wise decision, in this case, is to call our expert Jackson, MS bankruptcy lawyers as soon as possible.
What Are the Prohibited Actions?
There are some restrictions, however, on how the debt collectors work:
- Lie about how much you owe
- Inflate the interest and fees
- Continue calling after you ask them to stop (I’d ask in writing and keep a copy)
- Cuss or use foul language
- If they call you before 8:00 am or after 9:00 pm
- Threaten violence
- Call your family members multiple times (they are allowed to contact them once)
- Contact you at work once you notify them to stop
- They must send you proof of the debt if you request it
If you are dealing with these old debts that will not go away, then filing bankruptcy in Mississippi may provide a solution.
Our Jackson, MS bankruptcy lawyers have eliminated millions of dollars of debt for thousands of Mississippians. Don’t let your creditors trick you into restarting the Mississippi statute of limitations on your debt.