I have a past due credit card bill with Sears from around 1997.It just came off my credit report this year. They also took me to small claims court back in 1999, I think.I was living out of state and they didn't have my new address so I never got a summons. I found out about it when I looked online for judgements against me because I had been turned down for a loan a two years ago. I looked again and they are not on my credit and the judment is not on my record. They found out my phone number and my address and they are trying to get the money out of me now.Actually it's a collection agency. I have several questions. Can they put this back on my credit? What about the judgement, is it gone now? Can they legally still be trying to collect and should I pay? The credit card was closed around 1998. What about my bank accounts, should I be taking my name off them? I'm married now and the house and car are in my husband's name. Do I need to worry about them? Thanks
First, you have to know the statute of limitations on the debt. The fact that you state that this account has already aged-off your credit report leads me to believe that you are past the statute of limitations. Check your state code on statutes of limitation on credit card debt. If your debt is past the statute of limitations, it's "SOL", it's history and you're home free. OTH....the fact that it may be past the statute of limitations won't stop a CA from trying to collect it from you. You can inform the CA to cease and desist because it's past the statute of limitations. Document any contacts, keep papers, letters and envelopes because paper trails are important. It's also important to remember that in some circumstances, what you say, and you don't say, can be equally important. IF "ABC" CA is calling you and telling you "You owe $XXX.... on a 199X credit bill. Pay me!", tell them that this alleged debt is past the SOL [if true] and that they are to cease contact with you. The End. Give out no more detail. There have been cases when CA *do* attempt to go to court on SOL debts and while this is strange, the judge may know it's SOL, the CA may know it's SOL, BUT YOU are the one who has to stand up in court and say that this alleged debt is past the statute of limitations. Then the case is dismissed because the debt is SOL. Check the statutes of limitations on this debt. Keep in mind, debt collectors know that there's a virtual goldmine in old, old debt and that consumers are woefully uninformed regarding their rights and the law. If your debt is SOL, and I suspect it is, the CA cannot collect from you and you no longer owe Sears the money. Stay calm. Deal in facts. Proceed. Document all interactions and save the paper, including envelopes. Keep good records. Everyone can make a mistake in their past, but that's also the reason why there are statutes of limitations. When you learn about yours {SOL}, pass the concept and the information on to someone else. Informed, pro-active consumers won't fall prey to unscrupulous businesses. You asked, 'Should I pay?' Who? Sears? This is history. It's over. If the Sears account and judgement are so old that they've already aged-off your credit report, it's time to embrace the fresh start.
Thank you for all the information. I contacted an attorney today because I'm sure this isn't the last I've heard from them. The attorney basically said the same as you.
I'm glad you contacted an attorney and learned the facts from a reputable source. I'm sure that you, and others, will see "zombie debt" get resurrected sometime along the way. If you don't hear from them, you may hear from someone who bought it from them, but you now know the facts regarding old debt and you'll sleep well. Happy ending!
Note that there may be a difference in SOL between the original debt, and a judgement obtained based on it, if they have one. SOL on judgements can run longer, and may be renewed, depending on state law. If they are claiming to be collecting on a debt, with no mention of a judgement, I wouldn't bring it up.
They haven't mentioned the judgement and it is only pending. I don't think they know about it. The attorney I talked to said they have a 180 days to serve me with papers or the claim expires. They never served me and the judgement says pending.So I don't think there really is a judgement. Sears only went to court to try and find out where I am living and to serve me, the way I understood what the attorney said.
They may also have obtained a default judgement without properly serving you, on an out of SOL debt. If this happened recently, it is easier to get it thrown out due to improper service if you do it quickly. Were they attempting to serve you notice of their suit, or had they already actually obtained a default judgement, with no notice to you? It makes a difference. Is the 180 days the attorney was referring to 180 days after their small claims attempt back in 1999? If this went nowhere since they couldn't locate you back then, the matter may be over, past SOL. However, realize that based on state law which differs state to state, the SOL period might "toll" (be put on hold), during the period you were out of the state. You might still be past SOL, but you might need to check more carefully.
