Legal Question in Credit and Debt Law in Alabama

Closed loan accounts

Do I still have to make payments on an account that has been closed by the company? I have been paying on this account for seven years or more. The company closed the account and now are sending me letters to reopen, but I refuse. Do I continue to make payment until the loan is paid off? My statue of limitation is up in October, but the company said I have to make continue to make payments until the account is paid off. My interest rate is 17.99%. I thought there is time limit??? What is the statue of limitation for the state of Alabama. Please help!!!!!


Asked on 8/13/08, 6:55 am

1 Answer from Attorneys
Randal Ford Ford Firm

Re: Closed loan accounts

The statute of limitations for an "open account" STARTS when the last of two things occur (1) you use the "account" for the last time or (2) the date of the last payment. (Whichever is LAST). The statute of limitations is 3 years. If you are STILL PAYING on the debt, it sounds like the statute of limitations has not started. A "closed" account doesn't mean the debt is not owed or "good" - just that they are not letting you use it anymore. The statute of limitations for an account "Stated", where you acknowledge you owe the debt, is 6 years.

Without more information about the specific account, the above may or may not help you. GO SEE A LAWYER IN THEIR OFFICE and bring your documents.

Read more
Answered on 8/13/08, 6:31 pm


Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in Alabama