West Virginia to Require New Disclosure for Out-of-Statute Debts

[alert type=”error” close=”false”]Effective June, 6, 2014, debt collectors will need to update collection letters to comply with new notice requirements when pursuing debts that are beyond the statute of limitations, including informing the consumer that the creditor or collector cannot sue to collect the debt.[/alert]

Debt collectors pursuing debts that are beyond the statute of limitations in West Virginia will need to make modifications to their collection letters to accommodate recent changes to the West Virginia Code. A newly enacted bill, 2014 H. B. 4360, creates a new text disclosure under W. Va. Code § 46A-2-128(f) that is required when debts are beyond the applicable statute of limitations. The legislation requires that a debt collector seeking to collect on a debt beyond the statute of limitations for filing a legal action must inform the consumer that the creditor or collector cannot sue to collect the debt and disclose whether the debt can still be reported to a consumer reporting agency. The required disclosure reads as follows:

[When collecting on a debt that is not past the date for obsolescence provided for in Section 605(a) of the Fair Credit Reporting Act, 15 U. S. C. 1681c]

“The law limits how long you can be sued on a debt. Because of the age of your debt, (INSERT OWNER NAME) cannot sue you for it. If you do not pay the debt, (INSERT OWNER NAME) may report or continue to report it to the credit reporting agencies as unpaid.”

[When collecting on debt that is past the date for obsolescence provided for in Section 605(a) of the Fair Credit Reporting Act, 15 U. S. C. 1681c]

“The law limits how long you can be sued on a debt. Because of the age of your debt, (INSERT OWNER NAME) cannot sue you for it and (INSERT OWNER NAME) cannot report it to any credit reporting agencies.”

The notice must be provided in the initial written communication, when the debt is beyond the statute of limitations. Members should update any notices that will be sent to West Virginia consumers on out- of-statute debts prior to June 6, 2014.