Bronx, NY asked in Collections and Consumer Law for New York

Q: Can a bank hand over a newly opened checking account to a collection agency for a debt that is past the SOL ?

I don’t think the debt is mine and I believed I tried to dispute it off my report a while ago . I called Capital one bank to see why my New business debit card wasn’t here and they forward it to the collection agency . I don’t ever remember having any debt with capital one . My money is still in the account as I received a statement , but it seems they are “holding” the account. I sent a dispute email but don’t know how long that is going to take . They have stated online that the debt is past the statute of limitations .

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1 Lawyer Answer
Michael David Siegel
Michael David Siegel
  • New York, NY
  • Licensed in New York

A: It sounds like you are confused. To freeze an account there must be a judgment. The judgment lasts for 20 years in NY. The statute of limitations refers to the time to bring the initial case to get the judgment. To vacate a judgment you need to make a motion in the court that entered it. These motions are being considered.

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