Debt collectors pursuing expired debts - need help!

[Hugabear]

Here's my situation. I have an old credit card debt that has passed its statute of limitations (7 years). The negative credit from that account finally disappeared from my credit report last year, and for the first time in years, I finally have a somewhat decent credit rating. Now, some debt collection agency has purchased this old debt, and is pursuing it. I already know that technically, I still owe the money, and if I could afford to pay it off, I would. However, with the economy the way it is, and with myself facing imminent unemployment (I'm a temp worker), I can barely afford to get by as it is.

I know that if I acknowledge the debt, that the clock starts ticking all over again. I've heard from a few sources that if I don't acknowledge this debt, that there's not really much the debt collectors can do. If they take me to court, I can raise the statute of limitations defense, and most likely the case will be dismissed. Does anyone know how this works? Also, can the debt collection agency put this on my credit report, even if I do not acknowledge this debt?

Again, I know that technically and morally I should repay the debt, and I would if I could. I'm talking about legally, what are the options? Also, I live in Florida, since I believe the laws are different state-by-state.

[FreakinDJ]

1. Ask them to send you a copy of the bill

[hobbit709]

2. Here's a link to some info and resources.

http://www.budhibbs.com/

[Hugabear]

5. Thanks

n/t

[Ohio Joe]

3. I had this happen to me in MA

In 97 or 98, I got a call about a card debt from 82... Honestly, I had no idea if I had paid it off or not, those years are a little fuzzy. Regardless, I told the guy he was mistaken and that it had been paid off, he insisted I would have to prove that, and I insisted he would have to prove it was not. I knew from being in financial programming that records only had to be kept for seven years, so I figured I'd give it a shot, I really had no idea who had to prove what. They sent a bunch of letters and I kept returning them asking for proof the debt was real and denied anything they sent me, eventually they gave up. Nothing ever showed up on my credit report about it.

Edit - Tell them nothing over the phone except to send you documentation and that you will discuss it by mail only. That makes it harder for them to lie to you since you would then have proof.

[QC]

4. The statute of limitations on unsecured debt in Florida is four years.

Unethical collection agencies (all of them, pretty much) will often try to put pressure on your by illegally "re-aging" the debt--that is, making it appear on your credit report as a new debt.

That can wreck your credit rating, but at this point they should not be able to get a judgment against you. If they sue, however, you have to show up. Otherwise they can get a default judgment, and then you are on the hook, no matter how old the debt is.

[Hugabear]

7. This debt collector is based out of Michigan

Probably don't have to worry about them taking me to court. Although I have heard horror stories of debt collectors trying to take people to court, and sending their summons to an old address, in an attempt to win a default judgment.

I know full well how scummy and unethical these agencies can be. I had my life basically ruined by one of these agencies years ago. One fucking phone call was all that it took for my entire life to unravel, but that's for another thread...

[Th1onein]

18. Send them a ceast and desist letter.

The laws that govern this debt are the laws of the state that you were a resident of at the time that you signed the contract. But you are right. Sometimes they will send a notice of suit to the old address, and then seek a default judgement against you. You can have the judgement overturned, but it's a lot of trouble. Just send them a letter stating that you do not owe the debt and to cease and desist all communications with you. Make sure to send it by certified mail, return receipt requested. That way you have proof that they have your current address, and proof that you have notified them not to communicate with you again. If they communicate with you one more time, that's okay. Two? You can sue them.

[snappyturtle]

6. There are federal guidelines for collecting debt too. Check out

this website: http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre27.pdf

...and Google statute of limitations code for your state. The debt collector has probably bought a bundle of debts and yours has passed the limitations but others in that same bundle have not. Do your homework.

I agree with QC, #4....do not dismiss a court date! If you don't show up they can win by default! I have heard of collectors not showing up.

[ChoppinBroccoli]

8. Here In Ohio, The Time Is Measured From The Last Attempted Collection Action

So basically what that means is, if the debt itself is 7 years old, that's irrelevant. The clock doesn't start running until the creditor takes its last "collection action." So, for example, if the debt is 7 years old, but they sent you a collection letter 2 years ago, the time the debt has been "dormant" is 2 years, not 7. And courts usually construe the definition of a "collection action" very liberally to the benefit of the creditors.

My advice to you is to not give in to these people. Collection agencies are not lawyers. You can tell them to go pound salt and all they can do in response is turn the account over to a REAL lawyer for suit. They're full of bluster and will try to scare and intimidate you into giving them money. Don't fall for it. You also might want to take a look at the Fair Debt Collection Practices Act just for some general guidance on what your rights are.

[Th1onein]

15. That is absolutely incorrect.

Totally wrong. What I think you might be referring to is the law on when the Statute begins to toll on these kinds of debts. The Statute of Limitations begins to toll at the point where the debt is "charged off" or should have been charged off (six months after the last payment has been made) and sent to a collection agency.

The OP has gone almost two years beyond the Statute of Limitations for the State of Florida and he no longer owes the debt, according to the law, UNLESS (in some states, but not all) he acknowledges the debt, or "re-affirms" it.

Equifax Risk Management gaves us rigorous training in both the FDCPA and the laws in various states, and we were, in fact, licensed in many states. They made sure of it. I am pretty well-versed on what the laws are, in this regard and, sorry, you are mistaken.

[ChoppinBroccoli]

19. You May Be Right

I am an attorney who does collections, and I know that the time limit for me when the debt goes "stale" is measured from the last collection action. But I usually don't get the debt until there's already been a Judgment granted, so I'm usually collecting on judgments.

As far as the debt itself, the Statute of Limitations to file suit on it might be different. I don't usually get involved on that end.

[glinda]

9. Each State is different. All good advice plus pay Attorney $50 to write a letter stating

it is expired. That should do it. They will try to harass you and don't let them get away with it.

[kster]

10. From another Duer, dont remember which one

http://www.debtorboards.com/

hope it helps you.

[habitual]

11. Lemme share the love of what my retainer fee got for me today.

The key to it being past the statute of limitations is when your last payment was made, is that when you are calculating from? If so, then, as I understand it from the attorney I spoke with today, they have no course of action that they can take against you other than to send you those letters. They cannot sue you due to the SOL and they cannot report the debt on your credit reports.

The attorney I spoke with informed me that the only thing one would technically achieve by settling with a collections company that is trying to collect on a debt that is past the SOL was the peace of mind of them no longer sending collection letters and any other moral considerations one has.

[Hugabear]

12. Yes, it's from the last payment made

It's way past the SOL from the last payment made.

Thanks for all the responses, it will definitely help me feel better going forward!

[Th1onein]

16. They CAN sue you. But they CANNOT win.

They can get a default judgement if you don't show up, but the Statute of Limitations bars them from recovering in action against you.

If I remember correctly, they can garnishee in the State of Florida (although not on this old a debt), but it is so hard to do it (I believe that they have to go to court for every single garnishment amount; ie., weekly, if they want to garnishee your weekly paycheck), so it's not worth it.

[QC]

13. VERY IMPORTANT!

Do not, under any circumstances, give them a penny. That restarts the clock.

Often they will try to get people to send them just a few dollars to show their sincerity or some such bullshit. But any payment on the debt will bring it back into statute.

[Th1onein]

17. ABSOLUTELY! Don't send a dime!

It reaffirms the debt!

[Th1onein]

14. I used to be a debt collector for Equifax Risk Management

If the debt is beyond the Statute of Limitations, then DON'T ACKNOWLEDGE IT. And, by the way, the Statute of Limitations in the State of Florida is five years on a written contract. Not seven years. Seven years is the time it takes to get it to fall off of your credit bureau report, so you are well beyond the Statute of Limitations, okay? So calm down.

You can send them, via certified mail (return receipt requested) a letter simply commanding them to cease and desist all communication with you. At this point, they can call you one more time, to tell you what their options are, ie., garnishee (they can't and won't), or law suit (they can, but it will be thrown out because the debt is beyond the statute). If they call you more than once after receipt of the certified letter, you can sue them and you'll probably get about $1000.

They know all of this, but of course, they won't tell you that, because they're jerks and they're working what we call, in the collection business, "bad paper." They probably paid pennies on the dollar for the debt, though, and there are ignorant people out there who pay these out of statute debts, simply because they don't know any better.

I'm just curious--is the name of the company that's calling you "Portfolio Recovery"? Because if it is, they have a large number of phone numbers to call you from and they change about every two weeks as your debt goes from one area to another. And they are sleazebags.

Anyway, I wouldn't worry about it. Just make sure not to acknowledge that you now, or ever, even owed the debt. Portfolio Recovery is calling me on an old, old debt that is aged from when my son died, about twelve years ago. I haven't had time to send them a cease and desist letter, and they're not worth spending the money on, even if I had the time. I just have a little fun with them because I know they're a sleaze agency. When they call me, I ask their name, and then I tell them, "Listen, now. Listen very closely." Then I sing them the f__ck you song. Literally, a song that starts out with "F_ck you" and then includes their name; a catchy little tune I put together to the tune of "Good night, Ladies." Funny thing--they don't stay on the line long after I start singing. I don't know if it's my singing voice, or if they just don't like the lyrics.

[Hugabear]

21. That's exactly who it is

They call almost every day. The one time I did answer the phone, I had no idea what they were calling for. I knew enough not to acknowledge the debt.

[Maine-ah]

20. don't acknowledge the debt

do not talk to them, or respond to them in any way.

My brother went through this last year, and let them take him to court. He won his case on the expiration defense.

good luck!