Hello, everyone I have a debt from over 10 years ago from Sears that had already been taken off my credit report. I recently received a letter from a collection agency saying I still owed and they wanted to give me a chance to pay it off at at 90% discount. Is this something I have to pay, or are they just trying to re-open it and if I reply it will be re-opened. I hope that's enough information, the debt is about $2,000. Thanks.
Well, a debt that is over the obsolescence period can't be placed back on your credit report. What you want to see, is whether or not the debt is still within your states Statutes of Limitations (i.e. the CA or Sears could sue you for the debt.) Now, was this the first communication from this CA? Did it contain the requisite information "We are a collection agency, this is an attempt to collect a debt, any information obtained will be used for that purpose." and the validation notice "You have 30 days to let us know in writing that you dispute this debt." If yes, to all of the above, does it contain anything specifically stating that the account is older than the crust on their underwear, and that responding in any way other than disputing the debt, could be utilized to toll the Statute of Limitations? (If the answer to this is no, you more than likely could sue them for $1,000.00 or at least scare them away.)
jorge: If it is 10 years delinquent, it doesn't affect your credit rating. The risk is that they'll lure an unsophisticated consumer into retolling the SOL so that they could do more aggressive collection practices.
