Recently I recieved a call from the new collection agency bought out from the ‘LATE MONTGOMERY WARDS’. They are charging me for a debt that is at least 11 to 12 yrs.old .I know this debt has already been charged off and has gone against my credit record.
The amount was $483.00 now they are charging $1,183.00.I live in Texas and I’m sure laws for this matter changes from State to State.I now have A+ credit. Is this legal or should I pay to protect my credit?
Don’t even bother to respond. That money was due to Ward’s, which is now out of business anyway. You don’t owe the collection agency anything.
Just the opposite probably. Don’t pay it at all. Debts like that stay on your credit report for 7 years from the date of last activity. If you pay it, you will actually start the clock over in all likelihood and damage your credit once again. This is a little known gotcha.
You really should check on the applicable state law but the chances are that a collection agency employee (paid on commision) is just trolling for old debts to try to scare you into paying and score some easy money. The statute of limitations has almost certainly expired on this debt. Again, check with state law to be sure but this is a rather common scenerio.
There is a statute of limitation on debt collections. I believe they must notify you at least once every 2 or 3 years for a debt to remain valid. As long as you are notified of the outstanding debt within the statute of limitations, the debt liability extends. Each contact is an attempt at collection and that’s all they need to satisfy in order to take further collection action against you.
Research the statutes of limitations in your state on consumer debt. If you are certain that you have not been contacted about this debt within the applicable time frame, write the “new” company and tell them that you believe the statute of limitations has long expired on this debt and that, at the very least, they have purchased a bad receivable. This “little bit of knowledge” should persuade them to leave you alone.
Not true. The original charge off date (or date it went ‘bad’) is the date. Paying it doesn’t start anything over. This is an old rumor.
Last payment does not affect last activity.
Disclaimer: IANAL. I do, however, make it a hobby of mine to help people screw collection agencies and creditors.
Oh, you lucky lucky Texan. Texas is one of the states with the lowest statute of limitations for debt. The statute of limitations for debt collection in Texas is four years from the date the debt went delinquent. You’ve been clear for years. Next time the collector calls, ask the bottom-feeder for the address of their agency. They’ll run you around, trying to avoid giving it, but most of the time they’ll eventually give it to you. Even if they will not, they must still send you a dunning notice, a letter stating their claim to the debt, and their address, as well as other things, within 30 days of the first contact. If they’ve already sent you a dunning notice, just pull the address from that. To that adress, send via registered USPS mail a cease-and-desist letter, stating you don’t want them to contact you anymore, and a letter stating that you dispute the validity of this debt as the statute of limitations is long expired. A quick googling can provide you with boilerplate copies of each leter.
Now, the leeches can still try to come after you, by filing for judgment. However, if they do, their case should be summarily dismissed based on the statute. And you may well have a counterclaim against them.
As a note: keep all correspondence they send you. Keep copies of all correspondence you send them. Keep all receipts involved in the matter. Record all telephone calls from or to them. If Texas is a bi-party consent state (I think it is) be sure to tell them that you’re recording. About half of the time, the shady SOBs hang up as soon as you say that.
Again, though, I am not a lawyer. Just a layperson who has made $8k off of statuatory FDCPA penalties.
Banks, a couple of questions, since you might know:
First a request for clarification: You talk about Texas’s statute of limitations for debt. However the bank that handled Ward’s credit accounts was based in Georgia. Does that have any bearing on the issue, or does only the state that the debtor is from matter?
Secondly, where could I find the statute of limitation for debt for the state of South Carolina?
Banks thank you so much!! I did get the letter stating judgements and such…The mail went out about 30 min.ago telling them if I hear a word from them my attorney will be contacting them…I didn’t mention the statute of limatations however I did tell them that the debt had been satisfied and has already gone against my credit record and as"Cilasi suggestion"they had bought a non-recievable debt.I wish I would have put in the statute of limatation …Thanks to you all for great advice
Debt statues of limitation are by state - CA is four years from last activity for open charge accounts (“book accounts”). “Activity” means something YOU do - a charge or payment - NOT something the creditor does. They don’t get to extend the dept by tacking on late charges, interest, etc.
You are most likely dealing with the lowest level of collection agencies - the ones who buy 4th, 5th (or more) -hand receivables. They know they do not have an enforcable claim, but they hope to intimitate you into paying. NEVER send them a dime - doing so acknowledges the debt, and the debt is NOW enforceable, and the clock resets.
Where the bank is located is immaterial - where was the (alledged) agreement signed? Where were the (alledged) charges incurred?
(and, since the collection agency probably can’t produce the original contract OR charge slips, they really aren’t in a position to discuss jurisdiction, are they? 
)
Oh, the Statute of Limitation does NOT discharge a debt - it simply renders it unenforceable. You still owe the money, but they can’t get the courts to force you to pay.
But, can they can they harm my credit record?
Also: obtain your credit report from the three leading credit reporting agencies and make sure they have expunged any and all mention of this old debt. If not, correct it.
By law, credit records can only reflect the last 7 years of activity, or 10 years for bankruptcies.
The sleazeballs can report the alleged debt as a new delinquent account - the threat of a lawsuit may dissuade them - if they get nasty, have a lawyer send them a letter.
Pull your credit report from the following:
Equifax, P.O. Box 740241, Atlanta, GA 30374-0241; (800) 685-1111.
Experian (formerly TRW), P.O. Box 2002, Allen, TX 75013; (888) EXPERIAN (397-3742).
Trans Union, P.O. Box 1000, Chester, PA 19022; (800) 916-8800.
SC_Wolf- The SOL location is based upon a number of factors, but the dominant factor is the state in which the debtor was resident while incurring the majority of the debt. The location of the bank handling the account has no effect, although creditors sure would love that.
And, you lucky SC dweller, you’re a resident of one of the few states BETTER than TX for debtors. You have a tiny little SOL of three years. That’s tiny.
Some would say that the distinction is moot. If they can’t force me to pay, I’m not paying. Since all of their threats eventually fall back to the courts, the SOL efectively castrates them.
they could try… they’re mighty stupid if they do, because if they do something like that, they’re not only violating the FDCPA, but going into the much more lucrative (for you) territory of violating the FCRA. of course, the next smart collections agent i deal with will be the first.
After you inform them of the SOL expiration, their next attempt will be to appeal to your morality- the bottom-feeder will say something like “you spent the money, why do you think you can get away with not paying it.” Around then is the time to A) file a cease-and-desist letter, or B) tear into the bastard. Now, the more moral people out there may have trouble with this. As a victim of predatory lending procedures, I don’t have a hard time screwing the creditors.
good luck with the bastards.
And that’s 3 years from the date of last activity? So if the last payment was made in April of 2002, it’d be 2005 when they couldn’t seek recourse through the courts?
This is GQ, you know. We’re supposed to be dealing in facts here. Anybody got a cite one way or the other?
Well, I know that Philster is actually a manager at one of the major credit reporting agencies, so his opinion holds some weight in my book.
Neither Philster’s statement, nor Shagnasty’s statement contradict happyheathen’s. The first two talk about the effect on one’s credit record, whereas the third addresses whether or not the debt actually becomes collectable again (regardless of how or if it appears on one’s credit report).
Zev Steinhardt
Excerpted from http://www.cardreport.com/laws/statute-of-limitations.html (Further informative links are embedded in the below text and there is also a list of SOL by state at the site.)
The statute of limitations (SOL) for a delinquent debt is the time limit for the creditor to file a lawsuit. This period starts when the debtor becomes delinquent. The fact that the SOL has “run” (expired) on a particular debt will not necessarily prevent a lawsuit from being filed (via a Summons And Complaint), but the defendant can have the suit dismissed on this basis.
The Statute Of Limitations only covers lawsuits, and SOL expiration does not affect other types of collection action or reporting of the account to credit bureaus. The creditor or collection agency may theoretically continue with letters and telephone calls forever (although third-party collectors are subject to the “cease and desist” provision of the Fair Debt Collection Practices Act.) However, they will generally put much less effort into collecting “Out-Of-Statute” debts, and may give up easily. Out-Of-Statute debts can still be reported to credit bureaus for the time limits specified in the Fair Credit Reporting Act.
Credit cards are generally considered Open Accounts. Auto loans and other installment agreements are Written Contracts. If there has already been a lawsuit resulting in a judgement, that judgement has a separate Statute Of Limitations, which you can find here.
My source is the 3 lawyers with whom I have had the great fun of discussing this at length.
Under CA law: SOL starts with date of last “book entry” (CA calls them “book accounts” not “open accounts”, for whatever reason).
A payment is the queen mother of book entries.
Once the SOL expires, NEVER acknowledge a debt.
Ah, OK. I guess my reading comprehension has been suffering due to not sleeping enough.