Consumer Debt

Topics: Statute of limitations, Credit, Credit history Pages: 2 (753 words) Published: December 9, 2012
Consumer Debt
Teiagie Torrence
FP101
November 22, 2012
Renee’ Tolbert

Do you know the laws and guidelines considering consumer debt for you state? If not, you might want to perform research and learn all about them. Consumer debt regulations vary from state to state along with the statute of limitations. As a resident of North Carolina, I learned a lot about consumer debt guidelines and the statute of limitation and how important it is to make sure I stay on top of the game when it comes to expiration of the statutory period.

Statute of limitation is a law which places a time limit on pursuing a legal correction in relation to wrongful conduct. The statute of limitation is said to start running at the time a claim accrues. After the expectation of statutory period the injured person loses the right to file a lawsuit seeking money damages or other reliefs. Living in the state of North Carolina, the following periods represent a small sample of the statutory limitation period. * Fraud: 3 years

* Libel/slander/defamation: 1 year
* Product liability: 6 years
* Contracts: 3 years
Once the time allowed for a case by a statute of limitations runs out, if a party raises it as a defense and that defense is accepted, any further litigation is foreclosed. However, most jurisdictions provide that limitations are tolled or delayed, under certain circumstances. Tolling will prevent the time for filing suit from running while the condition exists.

North Carolina consumer debt laws are intended to safeguard citizens in commercial transactions and protect them from financial harm. There are four categories that debt falls into: (1) Oral Contracts, (2) Written Contracts, (3) Promissory Note, and (4) Open-ended accounts. It is important to know which type of debt you have occurs because the time limits differ for each type. * Oral Contracts are oral agreements that you make to pay back the money. This is a contract that includes no writing. The time...
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