Consumer Debt Essay

Do you know the laws and guidelines considering consumer debt for you state? If not, you might want to perform research and learn all about them. Consumer debt regulations vary from state to state along with the statute of limitations. As a resident of North Carolina, I learned a lot about consumer debt guidelines and the statute of limitation and how important it is to make sure I stay on top of the game when it comes to expiration of the statutory period. Statute of limitation is a law which places a time limit on pursuing a legal correction in relation to wrongful conduct.

The statute of limitation is said to start running at the time a claim accrues. After the expectation of statutory period the injured person loses the right to file a lawsuit seeking money damages or other reliefs. Living in the state of North Carolina, the following periods represent a small sample of the statutory limitation period. * Fraud: 3 years * Libel/slander/defamation: 1 year * Product liability: 6 years * Contracts: 3 years Once the time allowed for a case by a statute of limitations runs out, if a party raises it as a defense and that defense is accepted, any further litigation is foreclosed.

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However, most jurisdictions provide that limitations are tolled or delayed, under certain circumstances. Tolling will prevent the time for filing suit from running while the condition exists. North Carolina consumer debt laws are intended to safeguard citizens in commercial transactions and protect them from financial harm. There are four categories that debt falls into: (1) Oral Contracts, (2) Written Contracts, (3) Promissory Note, and (4) Open-ended accounts. It is important to know which type of debt you have occurs because the time limits differ for each type. Oral Contracts are oral agreements that you make to pay back the money. This is a contract that includes no writing. The time limit on this contract is 3 years.

* Written Contracts are debts with contracts that were signed by you and the creditor. A contract that includes terms and conditions of the loan. The time limit on this contract is 3 years. * Promissory Note is a written agreement to pay back a debt by in a certain payment, at a certain interest rate, and by a certain date and time. The time limit on this contract is 5 years. Open-ended Accounts are accounts with a revolving balance that you can repay and barrow. Credit cards are a form of open-ended accounts. The time limit on this account is 3 years. If you have past due credit cards, there is a statute of limitation that may provide you relief from creditor and also from collection agencies. In most states the limitation on debt is between 3 to 10 years, but could be longer than that, depending on where you reside. These debts fall into a category called “time-barred” debt, which simply means that collectors can still try to collect on the debt passed the expiration date.

Just because the debt has aged past its due date does not mean that you no longer owe. It means that the creditors cannot get a judgment against you, as long as you come to court prepared with evidence that the debt is old and has passed its expiration. Know your rights. Depending on what state you live in, if you make a partial payment, you could be postponing the Statute of limitations taking effect on your collection account or charge-off. Get to know what the law is and what it means for you.

It’s not easy resolving debt at times, but if you realize your rights, you could probably find it easier to manage and go about payback. Once again remember, just because your debt has expired does not mean that you do not owe. If you barrowed it, repay it.

References

Larson, A. (2004, July). North Carolina Statue of Limitations for Civil and Personal Injury Actions- An Overview. www. expertlaw. com. Retrieved November 22, 2012, from http://www. expertlaw. com/library/limitations_by_state/North_Carolina. htmlNorth Carolina Consumer Laws – FindLaw. (n. d. ). State Laws – FindLaw. Retrieved

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