Also, medical debts and utility debts are typically worth less than average, while mortgages debts usually go for more. A debt seller may be the “original creditor,” such as a bank, or a debt buyer who has decided to resell. Either way, the seller packages the portfolio(s) and then uses marketing tactics to find a buyer. In fact, we searched the internet for online postings of debt portfolios. In a recent study, the FTC noted that debt collectors continue to pursue legal action against consumers even after the statute of limitations has passed. The statute of limitations (which varies by state) is designed to protect consumers from debt collection after a certain length of time has passed. The statute of limitation is usually between three and six years, and the longest is 15 years.

After this time has passed, the debt is considered to be “time-barred. Collectors are not supposed to threaten legal action on time-barred debts. Are not supposed to make deceitful implications when talking to consumers. Debt collectors threaten to sue consumers over “time-barred” debt, which leads to consumers making a payment that resets their statute of limitations. Debt collectors encourage consumers to make a payment. Imply that this will be a one-time payment. Instead, this payment resets the statute of limitations. Debt collectors take consumers to court. Even though the debt is time-barred, a consumer who fails to show up in court can have his or her statute of limitations res