A Collection Agency sent me a bill for a Citi Bank Visa debt from the late '80's,that I couldn't pay because I became disabled and couldn't make the payments. It stayed on my credit report from 1990 to 1997 when it dropped off because of the 7 year rule. I currently have 4 Citi Bank Visa's and the Collection Agency says that the 7 year rule doesn't apply to me because I broke the "Truth in Lending Law" because I applied for a credit card with Citi Bank, after having an outstanding debt with them. The Collection Agency said they bought the debt from Citi Bank and if I don't pay them(The original debt was $1700. They offered me a discounted pay-off of $1400 if I payed right now) then they said they will sell the debt to another agency who will bill me for the whole $4056($1700+interest from 1987). Can they do this? The Collection Agency said I already have an Inquiry on my Credit Report because they have my credit file. Can they put that debt back on my credit report? They said the 7 year rule doesn't apply to this scenario because they are offering me a "discounted" pay-off amount and they are not threatning to garnish my wages or anything like that. Can Citi Bank cancel my 4 Visa s with them. Because if they cancel them, then it will show on my credit report that the Bank cancelled my Visa's and that is a negative itself.
I don't think there are SOL for debt that are longer than 10 years, check WhyChats site for SOL in your state. If they do "try" and sue you , the SOL has surely expired -if this first appeared on your CR in 1990 it must be 14 years since it was charged off so you would just have to raise the SOL as an affirmative in court. The "Truth in Lending" thing sounds like a bunch of BS! I thought TIL was a consumer protection act, anyway? They probably saw you have a Citi card on your CR and are making crap up to scare you. I don't know about applying for a CC with a company that you have an outstanding debt with, but it seems as if it would be the duty of the CC issuer to check that info out and decide if that is a factor in approving your application, not your responsibility. What are you going to do, blacklist yourself? If they place this back on your account, I belive that would be considered reaging, which they CANT do. Are you current with your other Citi cards? I think you just have some idiot debt buyer/CA that is trying to intimidate you into sending some cash and violating your rights. Hopefully you will get a response from one of the Gurus, but I don't think you have anything to worry about.
OMG, the lengths CA's will go to! These guys have violated the FDCPA soooooo many ways, I lost count. http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm#806 Pay real close attention to Sections 807 and 808. I would send them a cease and desist letter. Tell them you know the debt is out of SOL so they are, well, SOL... If they put it on your credit report, you will immediately return the favor by filing a lawsuit against them for violations of the FCRA, and for their false and misleading representations during a phone conversation on xx date in violation of the FDCPA. Ok, who is the CA? I have 3 that come to mind.
