[Linx04]

This is a recent debt collection case in Michigan. It involves the Michigan UCC and the SOL surrounding that i.e. Contract v. Sale of Goods.

http://coa.courts.mi..._297156.opn.pdf

[Cada]

I never knew there wwere separate SOL's for types of goods sold on credit. I just assumed anything bought on credit had a 6-year SOL.

[Linx04]

No there is a 6yr SOL on "Contracts" such as written, oral ( if you can prove it) and implied. There is a 6yr SOL on account stated (why those affidavits of denial need to be filed with the Answer) and then there is the 4yr SOL based on the UCC. Now TILA defines CC's as 4 yr, but I do not think any District Court Judge has ever followed that. I know there was some talk of 2yr SOL on Cell Phone agreements too.

[Cada]

What is TILA?

[Linx04]

Truth in Lending Act

[Cada]

Linx04, on 04 October 2011 - 10:02 AM, said:

Truth in Lending Act

Thanks!

[NoMoreExcuses]

Hello, I am new to the forum and I have a question on the Statute of Limitations in Michigan.
I understood it was 6 years for all kinds of debt, and longer for tax liens and the like.

Is it less for credit cards?
I guess I do not understand your answer.
there are at least two cc's reporting on my CR, account type ; Collection/Agency/Attorney, Collection and Collection.
There are no payments posted on either account.

In the Equifax comments section one says MEDICAL unpaid. I do not know who this account is either.

National Credit System
Senex Services

Just to add, I am a 100% service connected disabled veteran. That is my only income.
I think I am judgment proof except for taxes or child support (neither one is a problem).

I am sure I missed some information in this post, this has been an information overload for me.

[Cada]

Hi NoMoreExcuses,

Welcome to the forum and thank you for volunteering to defend our country. I'm sorry to hear you were disabled during your efforts and I hope things get better for you going forward.

What Linxo4 is saying is there are different SOL's for credit purchases based on the type of contract and Michigan courts currently use the 6-year SOL for credit cards.

I looked online and it says National Credit Systems specializes in apartment collections and as you stated - Senex for collecting medical debt. If you aren't familiar with the accounts, you could call them to find out, wait until the phone calls start or until you get something in the mail. If the alleged debts aren't recent, they may have decided not to pursue because of disability but I wouldn't bet on it. My experience has been collectors don't care about disability, it's all about trying to separate you from your money. The ones I've dealt with don't care if the funds are protected by federal and state laws...they just want cash.

I know it's complicated but the term "judgment proof" is just a technical term meaning there aren't any assets and the odds of collecting anything of value through garnishment, levy or repossession isn't likely. It does not mean a consumer can't be sued. If summoned and a consumer fails to appear in court, a default judgement will be entered against them regardless of assets or income status. The judge has no idea of any consumers financial situation unless the consumer shows up to court. If a default judgment is entered, the collector then has the option to wait and watch to see if the consumers financial situation changes. I think in Michigan collectors have 10-years to try to collect and this term can be extended for another 10 depending on the situation. You need to check Michigan laws to find out for sure.

If you think you're approaching the SOL on the alleged debts, it could be a good idea to check your district court periodically to make sure no suits have been filed against you.

[Cada]

Ooops, sorry, I hit the post button before I was done. I apologize for being long winded but:

If any collector contacts you, it's very important to ask them to place any claims they may have in writing. If and when you receive their written correspondence you then ask them (in writing) for validation of the alleged debts. Make them prove the debt is yours, they have the right to collect and make sure you haven't already paid the bill. Medical bills are funny, it can take months for doctors and hospitals to do their billing particularly if they have to deal with medicare or other government providers. I've gotten bills up to a year later after seeing a doctor or having a procedure done.

It's best to send your request for validation via certified mail return receipt request. Keep the little green card on file forever along with copies of the letters you send and receive.

Also, having no money or collectable assets isn't a legal defense as far as the courts are concerned but if it comes to that you need to make sure everyone knows your only means of support are protected funds.