When you obtain a credit card, you sign a written contract. The statute of limitations in Illinois on a written contract is 10 years. If 10 years has not expired, the credit card company may still bring suit against you for the unpaid balance.
What we sometimes see happening more often is this: the original card company writes off the debt as being uncollectible. After the account is written off by the original company, a new company comes along and offers to buy the account that has been written off from the original card company. Usually, the new company buys the written off debt for pennies on the dollar. The new company then brings a lawsuit against the card holder for the balance due. In the past recent years, this has produced a multi-billion dollar industry. These new companies that purchase the written off debt do nothing other than operate to make profits from these written off debts, and often times, they are successful in obtaining judgments against the holder of the card for the balance due.
If you are sued by a company that is not the original card holder, there are things that you can do to defend against a judgment being entered against you. However, if the statute of limitations has not expired, the new company may proceed against you by virtue of it purchasing the account.
If you are served with a complaint and summons on such an account, review it to see if the original company is suing you, or whether it is a new company. If it is a new company, give us a call and we’ll be happy to review it with you, and advise you of whether we can help you defend against the action. Call us for a free, no-obligation, consultation. We’re happy to help.
