When it comes to debt troubles, residents in Ohio and across the United States can understand the stress of growing debt. As the balance increases, debt relief seems to move further from reality as creditors push to collect payments. Thankfully the government is trying to help struggling consumers when it comes to old debt. Recently, the Federal Trade Commission (FTC) issued a publication informing consumers about their rights when it comes to the collection of old debts. This push comes after the FTC reached a tentative settlement with one of the nation's largest consumer-debt buyers.

The FTC says the company violated the Fair Credit Reporting Act and the Fair Debt Collection Practices Act in various ways. The company allegedly did not tell consumers that their debt was too old to be legally collectable. This type of debt is considered time-barred. There is a statute of limitations set for each state when it comes to this kind of debt. The FTC said the company also sent inaccurate information to credit reporting agencies and neglected to tell consumers that even a partial payment on any debt would extend the time that debt can be collected.

In the proposed settlement, which is pending court approval, the company promised to tell consumers that it will not sue them for time-barred debt. That stands true even if they make a partial payment on the debt. Other terms were also laid out in the agreement, although the company did not admit any fault.

Source: Washington Post, "Have old debts? Read up on your rights," Michelle Singletary, Jan. 31, 2012