How long can a debt collector attempt to collect on a debt?
Recently, a debt collector contacted me about an account with a department store that I paid off in 1993. They said that I still owe on it. I no longer live in the state where this account was initiated, so which states’ statute of limitations do I use, the state where I lived when I opened this account or the state where I currently live? Telling the agent who calls me that I don’t owe anything doesn’t work. They tell me that their client still wants their money. Is this a scam or can they collect on such an old account?
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This debt is WAY outside the statute of limitations for all 50 states…it is also past the allowable 7-year reporting cycle on credit reports….so they can’t place this on your credit file . This is ancient, time barred debt….because of this, the collection agency is powerless over you….other than trying to scare/annoy you into paying.
Technically, a debt collector can come after you forever…however, once the statute of limitations is up…they’ve lost the power to successfully win in court if they sued on the debt. Per the Fair Debt Collection Practices Act you can send them a "cease communications" letter and that will be all that you need to do. Per this law they must cease collection activity.
Send the collection agency a letter via Certified Mail + Return Receipt stating:
Per the Fair Debt Collection Practices Act, I am requesting that you cease all communications with me about this alleged debt.
—————-
* DO NOT sign your signature on any document that you mail to a debt collector. It could end up on a forged document that can be used against you. Simply type your full name.
Contact the company that they say you owe money to and find out if it is indeed a scam or not. If you do owe them money, then you can go on from there. If you don’t, contact the police, states attorney or the FTC and tell them your problem. Also, contact your phone provider to find the number/name of the person calling you in regards to this problem.
If you do owe the money, the collectors are going to be on you like white on rice. They will try to get you to pay the money and if you don’t, then your credit takes a dive into a pool where there is (probably, but hopefully not) no ending. If the debt is real, I am pretty sure you follow the rules of the state where the debt was initiated.
It sounds like a scam because they can only try collecting for 7 yrs. What it could be about is this: the debt was sold, by the original creditor or another collection agency, to the collection agency that contacted you for pennies on the dollar. This debt collector probably knows from experience that some people will just go ahead and start making payments. Once a person starts making payments, the debt (for whatever amount they agree to) becomes legitimate.
These collection agencies might buy say $100,000 worth of old debt for just a few thousand dollars. If they can con a few people into agreeing to pay a few thousand each, they make a good profit.
Whatever you do, DO NOT make a single payment or sign anything!
Someone sold him your collection account that was past the statute of limitations and he is trying to get his money back. He probably bought a lot of old collection accounts and is calling anyone just to find someone vulnerable enough to actually pay him. You need to write him a cease and desist letter. There are a lot of samples to choose from on the internet. I had to do that, and after I sent the letter, I never heard from that person again.
I would do some research. There are currently 11 states that have statute of limitation on "written" contracts ranging from 8 – 15 years.
In the State of California where I live at least, the statue of limitations on a written contract is 4 years from the date of breach. Different states will have different statues of which you should be aware.
Ilyse Klavir´s last [type] ..2010 Updated Chapter 7 Bankruptcy Petition Example
@Ilyse, thanks, good to know
My cousin has lost a lot of money in Internet scam.. So I would advice everyone again using any unknown services.. Stay aware buddy!!
Whoa, seventeen years. Sounds like some great advice on this page – and from the comments here it sounds like you can sleep easy on this one.
Be aware that different states have different statues, one one more advice for you that don’t sign any paper before mail just type your full name.
crystal@California Bankruptcy Attorneys´s last [type] ..FAQs Bankruptcy Part 2
It does sound like a scam to me but it will be nice if you will pay them if the debt actually was incurred by you. Other wise you just have to ignore their calls.
Jenny@ Small Business Bankruptcy´s last [type] ..Sep 17- What Small Business would suit me
Great informative post
I was looking for something like this over the web! Thanks
I guess your debt is past the allowed 7 years and I think I am skeptical because just like you think it might be some scam I am sure it is one hell of scam. Tell them you are not having the credit file it is simply outdated.
Jordan´s last [type] ..Air Jordan Melo M5 – Carbon Fiber Midsole – Black – White
wow, clear definition given in this article/blog
It’s criminal how they’ll come after you for already settled things. I’m sure you’re outside the statute though.
It does sound like a scam to me but it will be nice if you will pay them if the debt actually was incurred by you.
sismeliksiz´s last [type] ..Şişme Bebek
The first comment is dead on. Paying this debt off will not help you in any way (of course, if you owe people money, you should be responsible and pay). It is already off of your credit report, so it is not affecting your credit score.
Contact the company that they say you owe money to and find out if it is indeed a scam or not. If you do owe them money, then you can go on from there. If you don’t, contact the police, states attorney or the FTC and tell them your problem. Also, contact your phone provider to find the number/name of the person calling you in regards to this problem.
i would imagine that it would be the state where the debt was taken out from as that is when the debt began although i’m not 100% sure about American law