Debt Collection Issue- looking for opinions

In My Humble Opinion
1

First of all, I realize you aren’t lawyers and even those of you that are lawyers are not my retained lawyers and therefor might be feeding me nothing but fake information just because it’s funny. Don’t worry, I’m not accepting this as end all, be all legal advice :slight_smile:

Second of all, I figure this is more of an IMHO that a GQ because of the last thing I ask- if I should just pay it or not.

I just received a letter from a collection agency (one who, upon Googling, has pages and pages and pages of complaints- apparently they buy REALLY old debt, then try to collect on it) that says I owe $201.97 for and overdrawn Washington Mutual checking account.

Some points:
[ul]
[li]The account in question was overdrawn March 5, 2004 (about 1.5 months after my 18th birthday). For months, WaMu had been putting bullshit on my account- extra this, promotion that, even though I wasn’t agreeing to any of this in any fashion. In fact, every month, for the 6 months up until that point, I had to go in and speak to a manager for them to remove whatever it was from my account. That March, the “extras” (SUPER PLATINUM OMG CHECKING or whatever it was) overdrew my high school student bank account because they were about $65 that month. Then I got overdraft charges. I walked into the bank and closed my account. The manager said all the fees would be removed and my account would be left in good standing. Apparently it wasn’t.[/li]
[li]It looks like the company acquired this debt September 20th, 2007.[/li]
[li] This doesn’t show up on any of my credit reports, because I just pulled all three today.[/li][/ul]

I just have a few questions, as I’ve never had any debt before. First, I’ve read that the number one thing to do is to send a debt validation letter, but then other websites say that this company will often respond to a debt validation letter with a summons to come to court. Is this something I should legitimately be worried about?

What about the statute of limitations? I deal with the statute in regard to taxes, but haven’t in regard to consumer debt. I’m in California and my understanding is that the statute expires debt after 4 years. Is it four years from when I supposedly acquired the debt (2004) or when the company acquired the debt (2007)?

More importantly: should I just pay this? $200 isn’t going to break the bank or anything, but I think it’s shitty to pay $200 I don’t owe. But still, $200 to not have to worry isn’t too awful. What are your thoughts or experiences?

2

Check your IM.

3

The quickest and easiest thing might be able to just settle with them. They only paid pennies on the dollar for this debt so if you called and said “I can offer you $35 to settle this debt today” they may be amenable. If they agree to settle, make sure you get any agreement in writing over e-mail or fax or letter, and then only pay them w/ a money order or certified check. Do NOT give them electronic access to your bank accounts.

4

From what I understand it is from the time you went delinquent. Collection agencies can trade that debt until the end of time, but it depends on when you actually went past due.

5

From what I understand, if you settle with them, it will then show up on your credit report.

Also, a promise to pay may reset the statute of limitations.

IANADCL, so don’t necessarily listen to me.

6

D’oh! I mean PM.

7

I did some googling, and I am sure you did, too. But, just to throw it out there. Here is what I found.

Here is the text of the actual law that covers this. I haven’t even taken one law class, but reading it makes it seem to me that after 4 years a debtor is out of luck.

This article from MSN agrees with the 4 years. But, states that it is possible to inadvertently restart the clock on the debt. But, seeing as how you closed the account it looks like that probably would not be the case.

There’s no way in the world I would pay this debt. I would fight it. Especially since it isn’t popping up on your credit report. The Consumerist often has stories about agencies that help consumers dealing with debt collectors. Look around for them. Perhaps, they could help.

Good luck! I find this sort of thing interesting; keep us all updated. I hope you are able to defeat them!

8

I paid $400 once to make a bogus driving infraction go away - it was worth it. If you try to fight this, just your time alone will eat that $200 pretty quickly. That said, if paying it ends up with a blot on your credit report, that would change things in my opinion. I like the idea of making them an offer and seeing what they say. You shouldn’t owe it, but you kinda do, if you know what I mean.

ETA: But if the statute of limitations is up, it’s up. Too bad for them.

9

I see no reason to do anything but ignore them - except to tell anyone who calls that you are aware that the statute of limitations has expired on the debt and that they shouldn’t call again. Since you got a letter, recycle it - or use it for toilet paper.

First, it sounds like the charge is bogus anyhow. So, you don’t even have the slightest moral obligation to pay it.

Second, WaMu was one of the banks causing the housing bubble, which is why they failed and got bought by CitiBank. So the institution you dealt with no longer exists, and any charges for your overdraft - assuming they even existed - are long since written off.

The collection agency bought your debt for probably under $10. There is no way they are going to do anything but send you a letter hoping you bite - they are going to put your resources into big debts, not your trivial one.

If it isn’t on your credit report, it doesn’t exist as far as you’re concerned. Don’t sweat it.

10

That quoted statute appears to be the California statute of limitations. If you don’t live in California, your own state’s law may be different.

11

Diosa lives in California

12

Agree 100%

13

Thank you all so much for your quick responses- you’ve helped put my mind at ease over this.

I definitely don’t want to settle the debt, because that might trigger them throwing something on my credit report that I settled for less than the full amount. While I’m sure that doesn’t look as bad as an overdue bill on your credit report (which I do not have), it still isn’t a good thing. Now, if it came down to it and I absolutely had to pay it, I will, but again- I don’t actually have a debt to pay, as I’ve explained.

Also, I think it’s an interesting point that WaMu doesn’t exist anymore, so it would be difficult for them to prove I owe anything.

So, here’s my question: do I send a letter to the company politely reminding them of the statute of limitations or do I just ignore everything all together? If I did send that letter, I imagine I’d CC the Department of Consumer Affairs, as well as send them a specific explanation of the incident. Should I do this? I’m just afraid that fully ignoring it will lead to me one day getting a bogus court judgement in the mail that I have no way to fight.

14

I can’t see anyone taking you to court for such a low amount.

I would send them a letter something like this: http://www.debt-n-credit-letters.com/Debt-Dispute/SoL-dispute-letter.html

15

I would ignore it. It seems to me that answering it shows that a) you are the person they are looking for and b) that you know about the debt (even if it’s BS).

If it seems they have found you and can pressure you, they will. Then the phone calls and threatening letters will start.

Pretend you never saw it.

16

Bad idea. Some of these scumbags then resell your debt again, pocketing your money.

17

The only annoying thing is that they sent the letter to my father’s PO Box— something that has never been my address. Of course, my father sort of glared at me as he handed it to me, thinking I’m some dead beat. Excellent!

18

I did something very similar to this…except that I sent a copy of the letter to the FTC, and noted on the letter that I was doing so. I also wrote that I had done a bit of research, and I knew that the company (Camco) had a lot of judgements against it for pulling shit like this. I sent the letter registered receipt requested to the home office, NOT to the address that Camco gave me.

I think that you really do have to answer them ONCE, to put them on notice that you dispute the debt for whatever reason. And sending them a letter is cheap, far cheaper than trying to settle.

19

I have sent “validation letters” to several of these bottom-feeding debt collectors, and they stopped dead in their tracks and didn’t pursue. If it is old, and a low amount, there is no way they will take you to court. The validation letter has worked brilliantly for me. There are tons of templates out there, just google “debt validation letter.”

20

A debt that old? I would just ignore it.

But then I am known to not give a shit about things that might concern other people, such as my credit rating.*

I once got one of these calls, supposedly $105 for a bad check I supposedly wrote a grocery store in, like, 1987. $35 check and two $35 NSF (ISF?) fees.

This seemed a little too neat. I probably did bounce a check or two, it’s happened. I’ll bet I never once wrote one for that even a number, though. Also, I had been routinely writing checks to that grocery store for 15 years, and I don’t think they’d have let me do that if they had an outstanding baddie.

So I ignored it, and things were fine.

*Not that anyone else cares about mine; I mean their own, of course.