Debt Collectors: Will You Be Sued Over Old Debt? - The Credit Pros

Debt collectors have a limited time to sue for unpaid debts, governed by state laws, after which debts become 'time-barred.' Credit reporting agencies must remove most derogatory accounts after 7 years, as mandated by the FCRA. To avoid lawsuits over old debts, it's best to pay them off, but professional advice can help if you're treated unfairly or charged excessive fees. Collection agencies can damage your credit score but cannot add unauthorized fees to the debt.