I understand how I can use SOL that has run, as my defense when an oc or ca files suit against me to collect a valid debt. But...couldn't I initiate a small claims action for harassment, naming both the oc and ca (if any), because they are attempting to collect a debt on which the SOL has run? In a situation where establishing the SOL is fairly straightforward, could winning this judgment put an end to on-going collections where the oc has sold the debt to a ca, and the ca's keep passing these old debts along to new ca's ad infinitum? Ask for money damages, but instead of dropping the suit in return for deletion, we would enter into a stipulated judgment (judge's signature on the order) which would put an end to the debt once-and-for-all? In the complaint, could I ask for a cessation of any further collection activity (selling this account in the future would violate the judge's order). And also that oc/ca be compelled to strike the tradeline from credit reports?
You should check state laws first. Some states allow it - others don't. In states that allow collection of out-of-statute debts, SOL can only be a defense. In states where it is illegal, you could sue.
I believe there is an FTC opinion on the matter. If a creditor knowingly attemptes to collect a debt that is beyond the SOL and they use deceptive practices to get you to reage the account (i.e. offering to transfer the past due amount to a new cc card or make a small "good will" payment to extend the SOL) then it is considered a violation of the FDCPA. You might start researching here: http://www.ftc.gov/os/statutes/fdcpa/letters.htm
I have a special letter regarding SOL on my information site (in Faq's) To be sent to ca's as a pre--emptive strike on lawsuits. It COULD also be used as a basis for a lawsuit for FDCPA violations if they continued collection activities that included threats of filing or actually filing. If your State statute isn't posted on my site (I am getting them in there a few at a time) let me know and I will get you yours if you don't alrady have it.
