I was recently contacted by a collection agency who "purchased" the charged off account from Gantos (the original creditor who I am told is now bankrupt). When I asked them why it had been over 10 years since I heard from anyone regarding this debt, they told me that they only purchased the account in June of 2000 and the letters they sent to me were returned because I no longer lived at the address...they just recently were able to "skip trace" and find me. Naturally, the Collection Agency has added a healthy amount of interest to the account each month since June, 2000 --- even though they just contacted me last week. From what I have been able to ascertain, the original creditor placed the account into internal collections sometime after my last payment 1992 and according to the collection agency "charged it off" in December 1999. My question is, when does the 7 year reporting timeframe begin on this debt? I find it hard to believe that it had completely fallen off my credit report and now the clock can start ticking (another 7 years) based on the entry the collection agency has sent to the credit bureaus. I have spent years and years rebuilding my credit, only to find this black mark on a recent copy of my credit report. I tried to look up my rights under the FCRA Section 605 and I am unclear as to when the 7 year period begins...after which the credit bureaus are required to remove the information from my credit report. Can anyone answer my question on the 7 year period or give me advice on how to deal with the collection agency? Thanks.
The debt existed prior to 1/1/1998 they are pretty much out of luck under the FCRA. Lizardking is giving good advice.
Don't pay a dime on this. Because of it's age, they have no legal recourse to collect it, and they have no legal way to report it. Just write back telling them that it is not yours. If you do anything, you will hurt your credit and open yourself up for a lawsuit. If you are wondering why they are bothering, it is because they are a bottom feeding company that occasionally gets lucky and finds someone who has no clue about their rights and gets either frightended into paying, or wants to pay back their moral obligation. If you feel you have to pay back for moral obligations, then donate that money you were going to pay to your church or some other reputible charity. It will be better spent and put to better use. This CA bought this debt for nothing. You don't owe THEM anything.
The last purchase on the account was in 1990, the last payment on the account was in 1992. The debt was incurred when I lived in Ohio. I have been a resident of the state of Georgia since July 1993. Does that change the statute of limitations? I am a complete newbie when it comes to knowing my rights under the FCRA --- I have put together this letter and I'm looking for input from anyone willing to critique it before I send it to the CA via certified mail. Please let me know your thoughts. Thanks a million. ===== To Whom It May Concern: This letter is being sent to you in response to your attached letter. This is not a refusal to pay, but a notice that your claim is disputed. This is a request for validation made pursuant to the Fair Debt Collection Practices Act. Please complete the attached form and follow its instructions and your claim will be processed as soon as this information is received. The completed form and attachments should be mailed to me at the address provided in this letter. Please be advised that I am not requesting a "verification" that you have my mailing address, I am requesting a "validation"; that is, competent evidence that I have some contractual obligation to pay you. You should also be aware that reporting such invalidated information to major credit bureaus might constitute fraud under federal and state law. I have learned that your company has entered derogatory information on my credit reports which, if unsubstantiated entitles me to file a lawsuit against you and your client (Gantos) for: 1) Violation of the Fair Credit Reporting Act, 2) Violation of the Fair Debt Collection Practices Act, 3) Defamation of Character and 4) Negligent Enablement of Identity Fraud. Pending the outcome of my investigation of any evidence that you submit, you are instructed to permanently remove this item detrimental information from my credit report. Best regards, (my name and address here) Page 2 CREDITOR DISCLOSURE STATEMENT 1. Name & Address of Creditor: 2. Name of Debtor: 3. Acct #: 4. Address of Debtor: 5. Amount of Debt purported to be owed: 6. Date it became payable: 7. Was this debt assigned to the collection agency or purchased? Amount paid if purchased: 8. Commission for the collection agency if successful with assigned debt: 9. Have any insurance claims been made by any creditor regarding this account? Yes / No 10. Have any judgments been obtained by any creditor regarding this account? Yes / No 11. Have any negative trade lines been reported to any credit reporting agencies regarding this alleged debt? If so, please name the credit reporting agencies. 12. Please provide the name and address of the bonding agent for the collection company (insert name of collection agency) in case legal action becomes necessary. -Please attach a copy of the agreement with your client that grants you the authority to collect on this alleged debt. -Please attach a copy of any agreement that bears the signature of the alleged debtor wherein he/she agreed to pay the creditor. -Please attach copies of all statements while this account was open. (signature line) Authorized Signature for creditor/Date Please return this completed form and attach all assignment or other transfer agreements which would establish your right to collect this debt. Your claim cannot be considered if any portion of this form is not completed and returned with the required documents. This is a request for validation made pursuant to the Fair Debt Collection Practices Act. If you do not respond as required by this law, your claim will not be considered and you may be liable for damages for continued collection efforts. Please allow thirty days for processing after receipt of your request.
Dear collection agent, The date of last activity on this account was in 1992. The statute of limitations has long passed as the 7 years allowable for reporting this account. Therefore you are in violation of the FCRA and the FDCPA. I demand that you remove this illegal entry from my credit bureau files immediately. You have 15 days from the date of this letter to do so or I will immediately file legal action against you as well as file complaints with the FTC, my state atty general etc., etc., etc. Send it certified, return receipt.
<I>The statute of limitations has long passed as the 7 years allowable for reporting this account. Therefore you are in violation of the FCRA and the FDCPA</I> Don't spout untruths in your letter. It makes you sound like an unformed idiot whom they won't take seriously. This "violation" has nothing to do with the FDCPA. And, the SOL has nothing to do with the FCRA. I would make two clear and distinct points. (1) The SOL for your state has expired for the collection of this debt via a lawsuit. (2) Reporting this debt on your credit report violates the FCRA because it is over 7 years old. If they do not remove it immediatly, you will purse legal actions against them, the CRA, and the creditor.
