Hi there, based on WhyChat's resources, could anyone help me understand the difference between what is considered a written contract and an open account in Montana as it may relate to my case? I am trying to understand what the SOL is in my case and to take a second swipe at a medical collection sent to a local CB. The local CB seems to have been assigned and also purchased the debt from a local clinic at the same time?, and right away sent me a "court summons," AND had me served at work, regarding the low triple digit collection. I paid the CB, but learned during my trip to the courthouse, that the summons was fake, and was something this law firm routinely puts together to frighten recipients into making a full payment. I paid in full based on the figure on the "summons." Regardless of all of that (and I likely made many errors) -- I am trying to understand the proper SOL here. One year after I paid the CB, this CB sold my "debt" to another Montana CB in another town, who then sent garnishment documents to my employer to collect a low double-digit figure I allegedly did not pay, to cover collections efforts by the original CB. A second year passed and the 2nd CB sent a second attempt to my employer for garnishment again. I did seek counsel, but at the time I elected to let it go. Too many other life issues on my plate. But as I look at my credit report in the past month or so, I see that the original CB is reporting the collection, for $0 and updating, with no sign of the second CB. The last date of the bill to me by the OC was 7/2012. I was advised to not pay the bill by my insurance company because my insurance company said OC had not ever submitted my paperwork to them. Repeated calls to the OC led me to believe that they would properly bill as the visit was covered 100 percent, and a majority of their clients work for my company, meaning the OC was familiar with our insurance and reimbursement. My question: all things considered, is my SOL 5 years or 8 years? Thank you very much for your advice, IcelandGirl
STATUTE OF LIMITATIONS
Oral Acct: 3
Open Acct.: 5
Written Contract: 8
WRITTEN CONTRACT- 8 YEARS
Actions based on contract or other obligation.
The period prescribed for the commencement of an action upon any contract, obligation, or liability founded upon an instrument in writing is within 8 years.
OPEN ACCOUNT- 5 YEARS
The period prescribed for the commencement of an action upon a contract, account, or promise not founded on an instrument in writing is within 5 years.
ORAL CONTRACT- 3 YEARS
The period prescribed for the commencement of an action upon an obligation or liability, other than a contract, account, or promise, not founded upon an instrument in writing is within 3 years.
LAST PAYMENT OR CHARGE STARTS SOL
27-2-302. Actions based on mutual accounts.
In an action brought to recover a balance due upon a mutual, open, and current account where there have been reciprocal demands between the parties, the cause of action is deemed to have accrued from the time of the last item proved in the account on either side.
27-2-402. When defendant is out of state.
When the cause of action accrues against a person who is out of the state and cannot be served with process, the action may be commenced within the term herein limited after his return to the state;
and if after the cause of action accrues he departs from the state and cannot be served with process, the time of his absence is not part of the time limited for the commencement of the action.
REAGING OF SOL BY PAYMENT
Acknowledgment of debt or part payment.
An acknowledgment or the part payment of a debt is sufficient evidence to cause the relevant statute of limitations to begin running anew.
An acknowledgment must be contained in some writing signed by the party to be charged thereby.
Part payment is any payment of principal or interest.
COLLECTION AGENCY BOND & LICENSE