Legal Question in Credit and Debt Law in New York

Does making a payment to a collection agency on a debt that is out of SOL re-se the clock? I am being sued by a Collection Agency for a 9 year old debt that I made two payments to the creditor on post-SOL about two years ago (before I knew that credit reports could be inaccurate).

I am in NYS and this was for a Credit Card (Capital One). My understanding is SOL cannot be re-set on a charged off account period, and regardless payments to a collection agency, not the creditor, do not constitute a re-set of SOL. I am hoping to find some case-law to cite in my reply to the summons..


Asked on 3/02/10, 8:15 am

1 Answer from Attorneys

Mark S. Moroknek Kelly & Curtis, PLLC.

Why do you think that a company charge off has any bearing on the statute of limitations? Company's charge off bad debts and then litigate against the debtor all the time.

The answer to your question depends on other factors: there is the concept of a novation in debtor/creditor law, which revives a debt when the debtor acknowledges he owes it. That can re-vive the statute of limitations. However, whether it actually has in your situation is doubtful, because I don't believe you can have an unintentional novation.

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Answered on 3/11/10, 10:37 am

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