they claim i signed a credit agreement in 1994 and they have had no payments since 1998 and they have now contacted me with legal action 8years later is this right? legal?
2006-07-06 19:30:05 · 16 answers · asked by notalkjustplaying 2 in Business & Finance ➔ Personal Finance
After 7 years the right to collect is gone. It all has to do with their ability to sue you in court for it. The statute of limitations on personal debt is 7 years.
So, tell them to get bent
2006-07-13 15:32:19 · answer #1 · answered by Brian H 2 · 0⤊ 1⤋
GOD! These answers drive me nuts with this "pay the bill" nonsense!
The way I see it, the creditor said "pay your bill or I trash your credit for the next 7 years". OK, it's been trashed and on your history for that time. You paid your debt.
To answer your question, we must first know what state you live in. Each state has a Statute of Limitations, depending on the type of debt you owe. You don't really say what it is, just a "credit agreement". That could be a "written agreement" such as a car loan or mortgage....or a "open" loan such as a credit card.
Generally, most states have a longer SOL for written agreements. Credit cards run around 6 years.
So what you need to do is look at the link I've supplied below. It will go into exactly what the SOL is, and lists each state's time periods.
Note that the SOL begins on the day of the last transaction. So if they show the last payment was 1998 then your SOL is now 8 years, and may have run out.
Note that a lot of the sleazier collection agencies will try to collect very old debts. Legally, they can continue to TRY and collect debts, but if the SOL has run out they can't sue you or do anything about it. You no longer have a legal obligation to pay this debt.
In the meantime, send the collection agent a validation letter. See the example below.
2006-07-07 09:52:45 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If you did actually sign a credit agreement, then the answer is yes, they can come after you for the money. However, they cannot harass you! This means they can't call you at 3 AM in the morning, curse at you, etc., but they can legally try to collect what you owe.
And if it's been 12 years, I wouldn't be suprised if it's been bounced around from collection agency to collection agency. If you don't remember signing anything, you can always ask them to provide you with a copy of the signed agreement.
And FYI, it's not unusual for a period of time to go by when you don't hear anything, but then all of a sudden you get a letter or phone calls. The biggest problem you have is the negative impact it's had and is still having on your credit history.
It's quite common for them to never collect the full amount owed, and for them to get "something." They might be willing to settle for an outright one-time payment of X amount, or have you pay as little as $10 per month.
Your credit rating will definitely improve if you pay this off or begin paying it down, because it shows financial responsibility. Not paying at all shows you're a huge risk and really hurts!
2006-07-07 05:45:04 · answer #3 · answered by msoexpert 6 · 0⤊ 0⤋
I believe that an unsecured debt canot be chased after 6 years providing the creditor has not contacted you in that time,and you have had no contact with them....Might be an Idea to check with the citizens advice bureau or a financial adviser...Even if you have to pay a fee to the financial adviser,the resulting peace of mind which comes from knowing where you stand makes a fee worth it
2006-07-06 19:51:48 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Yes they can. They can chase you 50 years later. Dont get confused with the credit references time limits. They cant put you down as a bad lender after a certain amount of time, but they can and will chase you for the money.
Make a deal with them, a low payment one that is fair and they will be happy.
2006-07-07 08:41:41 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Did you actually sign an agreement? Even if you did, I doubt they can. I don't know about where you live, but most states have a statute of limitations on debts-in most cases 7 years. I suggest you talk to a lawyer.
2006-07-06 19:37:04 · answer #6 · answered by Evil Scorpion 4 · 0⤊ 0⤋
No, if you have had no contact whatsover from them in the past 7 years then the loan is written off and they can't do a thing about it legally. I think they are having a last ditch attempt to regain their money but they are too late! I know this because my daughter was in a similar position. Hope this helps, good luck!
2006-07-07 07:13:01 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Are you talking about CAPQUEST? if you are they are bullies and what thay are doing is illegal, just type capquest in the search browser and you will find lots of info about these people and what to do to get out of this, if your dept is more than 6 years ago they cannot touch you and that is a fact, also visit the website below, and look on the page for capquest dept. or call 0808 808 4000 for advice.
http://www.grumbletext.co.uk for help Good luck
2006-07-06 19:50:12 · answer #8 · answered by Anne A 2 · 0⤊ 0⤋
If you signed the credit agreement, if you didn't pay the money back, then you still owe it. Yes they can still chase you for it, legally.
2006-07-06 19:43:42 · answer #9 · answered by Lick_My_Toad 5 · 0⤊ 0⤋
Unless you still legally owe this debt, it is illegal for them to continue to harass you.
You might want to contact an attorney for further advice. He may be able to send them a 'cease and desist' letter on your behalf, depending on the circumstances involved.
2006-07-06 19:36:07 · answer #10 · answered by DG 5 · 0⤊ 0⤋