HELP! I don't even know where to start to find answers. I got a letter from a collection agency that purchased my charge off from 1992, maybe 1993. Can they do this after so long? What if I can't pay now? It's been gone from my credit report for a while. Is it now going to reappear?
Yes, a collection "attempt" can be made but that does not mean you are legally obligated to pay or that the alleged debt is legitimate. After 13 years, the debt is certainly past the statute of limitations. At the bottom of the CA letter, there should be a mini-Miranda if this is your first contact with this collection agency. Write a letter to the Collection Agency, tell them that this debt is past the statute of limitations and collection is time-barred, that you dispute the entire amount that they claim you owe and that they are to cease-and-desist any further contact with you. Enclose a copy of their letter with yours. Send it CMRRR. Keep a copy of everything, including the envelope from their letter, and staple the Postal Receipts and copy of the green card to your letters in a folder. Hold. Keep on file because "zombie debt" has a habit of rearing its head again....and again.
I've been reading things all over the web today looking for answers. Thank you for your reply. If I write to them, will this restart the SOL?
No, writing to the CA will not restart the SOL for you. There's a link here to "WhyChat" website and most state SOL's are about six years or less on cc accounts. There are very good resources at "WhyChat's" site, including letter templates for this issue. You should write to the CA, enclose a copy of their letter and make the points that this collection "attempt" is time-barred due to the statute of limitations, that you dispute their entire claim that you owe an alleged debt, and they are to cease any form of contact with you upon receipt of this notification. Be sure to send your letter CMRRR, make copies of everything, file it away, especially when the green card is returned. Staple the receipt you get from the Post Office for the postage paid when you send it out. This is "zombie debt". It's past the SOL, and CAs count on individuals not knowing the law, the concept of SOL, or their rights. There's also the possibility that this zombie debt could be sold again ....and again. Just keep your file. If you see another CA make an attempt on the same old account that past the SOL, send them a letter with the same points: you dispute the debt in its entirety, that this account is SOL and time-barred from collections, and that they are to cease any further contact with you. Keep the paperwork. Yours and any contacts. Even their envelopes.
Thank you so much for taking the time to reply. I will go check out the letter template and follow your advice. Jamie
No. That's not to say it hasn't been attempted. If it's SOL, it's beyond the statute of limitations and if a "zombie" account reappears in your mail via a CA you need to write the letter to dispute the entire claim of the alleged debt, and you can tell them to cease and desist contact in any form with you on this SOL alleged debt. Keep the record. Records are our friends.
Ok, just a couple clarifications guys; 1) Usually a collection attempt can be made even on Post SOL debt, BUT NOT in 3 states; a) Wisconsin b) California c) Minnesota (I think. Don't quote me on this one) In these states when the SOL expires it's as if the debt extinguishes 2) Making a pmt. on a CO'd debt CAN restart the SOL in some states, IF it's a medical debt. 3) A Data Furnisher (DF) CAN report anything, anytime, regardless of it's age, but they must also reoprt the date of delinquency. It's the CRA's responsibility to make sure that the 7 YRP is complied with. Might seem like a distinction without a difference, but may become important during litigation. Keep up the good work. : )
