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If you don't pay a debt collector or collection agency, you'll likely face increasing efforts to collect the debt via phone calls, letters, or even social media contact. Not paying a debt in collections will also hurt your credit score. If you don't pay, the collection agency can sue you to try to collect the debt.
Until 2022, the statute of limitations for debt in New York was six years. However, in January 2021, the New York Senate passed a bill called the Consumer Credit Fairness Act of 2021 that reduced the statute of limitations on most types of debt to just three years. This bill was officially enacted on April 7, 2022.
In most cases, the statute of limitations for a debt will have passed after 10 years. This means a debt collector may still attempt to pursue it (and you technically do still owe it), but they can't typically take legal action against you.
Send a dispute letter to the debt collector within 30 days of them contacting you. Once a debt collector receives a dispute letter, they must stop trying to collect from you until they can send a written confirmation of the debt, like the original bill.
Ask the Creditor to Take the Debt Back Unfortunately, that's rare. It's more likely that the creditor will only take the debt back if you negotiate with the collection agency, establish a repayment plan, and make two or three payments under the plan.
You can sue the debt collector for violating the FDCPA. If you sue under the FDCPA and win, the debt collector must generally pay your attorney's fees and may also have to pay you damages. If you're having trouble with debt collection, you can submit a complaint with the CFPB.
Thanks to a law passed in 2021, the statute of limitations of debt in New York is three years, which means that's how much time a debt collector has to file a lawsuit to recover the debt through the court system.