Check whether a consumer debt is time-barred before collection continues
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- Build a chronology of the last payment, the last written acknowledgement, and the date the lawyer marks as accrual. Do not say the debt is or is not time-barred.
- What the lawyer must review
- Under 12 CFR § 1006.26, a time-barred debt is one whose applicable statute of limitations has expired, and a debt collector must not bring or threaten a legal action to collect it. The prohibition does not apply to a bankruptcy proof of claim. The limitations period is the period prescribed by applicable law, which is state law and can differ for a written contract, an open account, or a judgment. You pick the governing law and the end date. A payment or acknowledgement may restart the period only if that state's law says so.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Potential support includes summarising source material. Confirm the tool’s capability and permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Trace every relied-on figure to its source, confirm dates and assumptions, and independently recalculate totals or derived amounts.
- Calculate operative dates independently from the current rule and actual triggering event. Check exceptions and record the verified deadline.
- Review operative clauses in the complete document, including definitions, cross-references, schedules and inconsistencies with the instructions.
- Verify the applicable jurisdiction and the version of each relevant law, rule or instrument in force at the material time.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.