topic Re: Bank account collections in General Credit Topics

Bank account collections

Anonymous — Thu, 27 Jan 2011 03:45:24 GMT

I was wondering where bank accounts would fall under the statute of limitations. I seem to be getting multiple answers from "friends and family" but wanted to check here. A little background. Supposedly I opened a checking account at US bank in missouri in 03/05, and it was closed in 06/05 with a negative balance. I have been getting calls from a collection agency. I would like to know if the account falls under a written contract or open account before i proceed with debt validation. I have already disputed this with the credit reporting agencies and just need this question answered before i go further.

Thanks in advance.

Re: Bank account collections

llecs — Sat, 29 Jan 2011 04:27:40 GMT

I'd hazard a guess and say "written" unless your state has a separate provision for deposit accounts.

I would send the DV anyway. When you dispute, the CRAs send your updated contact info to the CA anyway. If they weren't awake before, they are now. A sent DV wouldn't increase the odds of being sued any more than now.

Re: Bank account collections

RobertEG — Sat, 29 Jan 2011 04:41:17 GMT

Your state civil code defines each type of debt, and its associated SOL provisions.

Checking accounts are not credit accounts. They are business accounts, established by written contract between the parties. They are, under most state SOL statues that I am aware of, not treated as open-ended (usually reserved for revolvong credit) accounts. I agree that it would appear to be a written business transaction, governed by the relevant SOL section. But check your state SOL statute.

Regardless, I dont see how debt validation with a debt collector has any relevance to your state SOL on the debt. DV letters are solely personal communications between you and the debt collector, and really have nothing to do with SOL or credit reporting.