Time Limit Or Statute of Limitation for Collection Agencies to Collect A Debt

The question here is whether there is a timeframe in which a collection agency is supposed to collect a debt after which there are supposed to stop pursuing the consumer for payment.  The answer is that while certain state laws may have restriction on the timeframe that a collection agency can suit the consumer for payment by and large on a national level there is no time limit.  In theory collection agency can pursue the debt forever but that seldom happens.  Depending upon the size of the collection amount a collection agency may cease pursuing the consumer for payment when the cost of the effort of trying to recover the money increases the money that is due.  So if after some time is no longer of the collection agency to pursuing a debt it usually stops making efforts to collect the debt.

There is however a time limit to which a collection account can remain on a consumer’s credit report.  This limit is seven years from the original date of delinquency is reported to the credit bureau.  Even though the collection account may be deleted from your credit report the collection agency may or may not give up trying to collect the amount from you and may pursue the matter long after the collection account is no longer present on your credit report.