Medical Collection SOL and 7.5yrs.

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in NC afaik there is no "statute of repose" (it means when a debt is SOL for legal collection activity it is also dead from collection, period). Also, SOL with regard to the state is completely different than the 7.5 years something is allowed to appear on your credit report.

Additionally, they can try and collect from the friend forever. They just are time-barred from filing suit against your friend. But by that same token, if they DO file suit it is up to your friend to prove the SOL has run and the CA filed suit on a time-barred debt. SOL is an affirmative defense to a lawsuit, it is NOT a preventer of one.

does that make sense?

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One sec there. If the debt is past SoL and there is no Statute of Repose then there should be no tradeline on the credit report.

Under the FDCPA a debt collector is in violation if they attempt to use any deceptive means to collect a debt. Reporting a debt as collectable to the bureaus when it is legally not, is a violation.

It may serve as a fairly good hammer to get it resolved and off the reports without court action.

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Correct. They can collect forever, they just can't (legally) use the threat of a lawsuit in such collection.

The threat or the filing of a lawsuit would be a FDCPA violation all by itself.

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How does that make sense?

On several fronts:

1: FDCPA Section 807:

§ 807. False or misleading representations

A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:

(2) The false representation of—

(A) the character, amount, or legal status of any debt

In this case, that the debt is legally enforceable

2: FDCPA Section 807:

(5) The threat to take any action that cannot legally be taken or that is not intended to be taken.

If a threat, they better do it, or they violate.

3: FDCPA Section 807:

(10) The use of any false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning a consumer.

ANY threat they make that is based on a lie (meaning that the debt is enforceable) is a violation, and conversely and action they take to carry out the threat would be a violation.

There is Case Law for all of this.

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Yeah, flyingIFR is right...they can't threaten a lawsuit AND they can't actually bring suit (by "can't", i mean they CAN but it's up to the OP to counter sue for the FDCPA violations that flying mentioned above). it's NOT an automatic bar against them.

But like I said earlier, they CAN still collect, they just aren't allowed to use the Courts (or the threatened use of the Courts) to do so.

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