I had an account with Heilig Meiers many years ago and the last payment I made was in November of '99. This account has since dropped off of my credit report, but Palisades recently sent me a collection letter. I replied, asking for validation and months later (today) I received from Palisades a copy of my credit application with HM, a copy of my driver's license, receipts of payment and what looks like an old copy of my credit report. The balance is for $1400. I am unsure as to how to respond, if at all. I don't have $1400 to pay them and I don't want it going back onto my credit report. I also don't want to be sued. Thanks in advance for any advice you may give.
They would have no case against you since the statute of limitations on that debt has long passed - but do appear in court if they sue you where you will have to raise the SOL defense. If you don't appear in court they will get a default judgment against you leading possibly to garnishment of wages and bank account freeze. Seems like these collection agencies are digging up dead accounts from the creditors' graves.
Greg since the value of the dollar has dropped since 1999 why not make a offer in 2008 dollars to settle like $83.23 dollars.I agree you have to keep watching the mail at both house's
So, do I just ignore their response and hope they don't sue (while watching mail from both addresses) or send them a reply, asking them to only correspond with me at the permanent address. If I write them a letter, what should it say? I can't deny the account is mine as they have provided my contract, signature, etc. I am renting where I currently live, so I don't want them to keep mailing me stuff here after I move. I would settle for $83.00 to get them off of my backs!
I would offer them $70 - 5% of $1400 - which they might accept since it is something. Hauling people into court just to lose because of the SOL is not in the interest of the collection agency. By agreeing to $70 they will at least get something. The only negativity I see in a settlement such as this is the fact that the CA will produce a 1099 for $1330 - which then has to included as income when taxes are filed - possibly pushing the poster into a higher tax bracket.
Send Joan Bergman a communication and tell her not to communicate with you at all insofar as the debt is time barred and too old to report under the FCRA. Also, there attempt at validation was too long in the tooth under the current state of the law. But, thank her fo providing you rock solid evidence of the statute of limitations expiration. The debt is time barred thus, you have an affirmative defense that will lead to dismissal if they sue. You could actually counter-claim under the FDCPA if you do as I suggest above. The debt is too old to be reported per the FCRA. Pray that they do report it (they won't now if they haven't as of now) so that you can sue them. I wouldn't ignore it because it's too fun when you have them in a corner. Let's keep in mind that these are scum debt purchasers folks trying to trick people out of money they don't legally owe. Yank their chain . . .
Incidentely, a fellow attorney I know well does consumer law in Florida. Just thought I'd mention it . . .
Thank you for your help. I am going to check my CR again to make sure that they haven't reported it on there since the last time I looked. I have read someplace else that acknowleging that this debt is mine will re-age it, causing them to be able to report it on my CR again...is this true? I am in the process of writing a "cease communication" letter so I want to be sure I am wording it correctly.
It can in some states if you coincide that with a payment. Just tell them to go to hell and you don't know what they're talking about.
Just mailed the letter. Thanks again for your help. I have found a lot of useful information in these boards and some very helpful people.
While Apex has provided you with excellent information as he always does, I fail to see what you hoped to gain by sending them a letter demanding that they not communicate with you at all regarding the alleged debt. In doing so you leave them only two options. One is to simply do as you said, not communicate with you any more or the other option is that they sue you since you have left them no other means to communicate with you. I never advocate that anyone send a cease & desist letter nor ever use those words in any communication with a debt collector even though the law plainly gives you that option. I even strongly advise that one should never even use those words in the sense of a partial cease & desist which the sender intends should only apply to communication by phone. Almost every validation letter to be found on the internet has a phrase in it that goes into a bunch of yada-yada about "you may not contact me by phone" or "please cease & desist from communicating with me by phone" or other equally senseless drivel. Nowhere in FDCPA is there a provision for a partial cease & desist. Anyone advocating use of partial cease & desist is indeed a dangerous teacher to be avoided at all costs. FDCPA provides a safe means to get the same thing done without using the words cease or desist. Use the exact wording found in FDCPA and keep out of possible trouble. It is the same with cease & desist in your type of situation. As has been pointed out by others here you have every excuse to use that wording because the debt is obviously out of stat but why invite them to sue you? Why not use the alternative wording found in FDCPA and then sue them for the violation in federal court. In your particular case you might actually want them to sue you because if they did you could sue them for misrepresenting the legal status of the debt. On the other hand, if you had used the alternative wording found in FDCPA and they sued you then you would have multiple causes of action against them. The first would be misrepresenting the legal status of the debt and the second would be for their failure to advise you of what they intend to do about your lawful cease and desist letter. If you use the words cease & desist they may very well comply with the law and properly notify you of their intentions but if you use the alternative method suggested in FDCPA they probably would never wake up to the fact that what you had actually sent them was a full cease & desist which they had a legal obligation to provide you with a proper and timely response. If you must educate the other fellow make the lessons as expensive as possible.
Where do I send it to the person you mentioned? I saw the name you mentioned, but I am not sure who that is or how to get their contact information. I have another question and this may seem silly, but someone told me that I could be criminally charged because the debt is for furniture that was not paid for. (I guess they were implying that I could be charged with theft?) Now, this wasn't a CA implying this, but someone I personally know. I don't think this is true, but I wanted to make sure! Do you really think they would sue me, knowing that I plan on bringing up the SOL if they do, causing them to dismiss the case? Wouldn't they see that as a waste of their time since they wouldn't win? Or am I giving them too much credit? (no pun intended, lol)
They can't charge you with theft depending on your state there would be a sol on crimes.Anyway they don't do that any more.So tell your wanabe lawyer to study law so he can work for a ca and lose every case he/she files
Or tell that wanabe lawyer to go back to law school and this time actually graduate and not flunk out again.
