The statute of limitations on debt collection in Illinois varies depending on the type of contract entered into on the debt. For written contracts, such as car loans, the statute of limitations is 10 years. For oral contracts or open accounts, which often includes credit card debt, the statute of limitations is 5 years.
Debt collection abuse
Consumer Rights Law Firm Serving Clients in Chicago, Illinois, and Nationwide
Recently, our attorney Paul Markoff was chosen to lead a class action suit against Midland Credit Management on behalf of consumers who were misled by a form letter sent by Midland. The lead plaintiff, Renetrice Pierre, argued that the letter did not warn debtors that by agreeing to pay any amount to Midland Credit Management, it would re-open a time-barred debt. Debtors cannot be sued for money owed on a debt that has passed the statute of limitations.
Many Americans are in debt, but may not realize that even though they owe money, they are still protected by the Fair Debt Collection Practices Act. Under this act, you do not have to put up with harassment or abuse by debt collection agencies. In addition, debt collectors cannot provide you with false or misleading information.
Being in debt is frustrating enough and, when circumstances make paying the debt more complicated, harassing phone calls, letters, and texts don’t help. As a debtor, you have certain rights and protections that are in place to guard you against the most aggressive debt collection practices.