How long can a credit card company go after you for a debt?

Question

I just recieved notice in the mail about a credit card I had canceled over 10 years ago. It was a $500 credit card but they claim I now owe almost $4000. I looked on my credit report last month and that debt wasn't there. About a year ago it was on my credit report but when I refinanced my debt loan they said it had been taken off. When I checked my credit report last month it was still off. Now today I get a letter in the mail claiming I owe them money still. Can they put it back on my credit report after the statue of limitations has run out? In Missouri its 10 years for a credit card. I'm willing to pay them $500 for the origional credit card but I don't know where they have come up with this $4000. I'm slowly rebuilding my credit but if this goes on it I'm going to have to just give up and declare bankruptcy. I'm 29 so I'm still young enough to recover from it but don't want to file even though with this it puts my debt way over $10,000. (Capitol One was CC Company)

Answer 1

If it's not on your credit report don't pay it. Are the letters from Cap One or from a collection agency on behalf of Cap One...If it is a collection agency...don't pay a dime ...if you do the ten years starts all over again. Some collection agencies buy a list of collectibles from a bank and whatever information is on the list they attempt to go after...the laws are very tricky...so once you pay anything ...the law says you are admitting you owe something and the whole 10 years starts over again.

Answer 2

fr_chuck is correct.

First, you are wrong about the statute of limitations. In Missouri, the SOL for open/revolving debts is only 5 years (MRS 516.120). Written contracts (such as car loans, mortgages, promisory notes) are for 10 years (MRS 516.110).

Note that we are discussing two differant time periods here...the Statute of Limitations and the Credit Reporting Time.

Negative items can only be reported on your history for 7 years, beginning from the day of the delinquency. PERIOD! Selling this debt to another creditor does not restart the reporting period. Any attempt to relist this is illegal, and you have grounds to sue them for $1000 if they try it.

As noted above, the SOL can be restarted if you make a payment on the debt. As long as you have never contacted the creditor or made an effort to pay, then your SOL ran out 5 years after the last transaction (last payment was made).

So if you are CERTAIN that nothing has happened in 5 years, you are safe from legal lawsuits. As noted, they still have the right to attempt to collect this debt. They just don't have the ability to sue for your it or try to garnish your wages or property.

All they are left with is the ability to call and harrass you. But you can put a real quick stop to that.

Send the creditor a letter by certified mail/return receipt. Use the sample letter I've listed in the link below. Be sure to begin the letter by saying "this is not a refusal to pay". Very important!

In it, you are going to do 3 things.

1) Demand that if they believe you have a legal obligation to pay this debt, they must validate it. That means sending you copies of contracts, bills, receipts, and everything used to calculate what they claim you owe.

2) Point out that your records indicate that the Statute of Limitations has run out, and according to Missouri law (MRS 516.120) you no longer have a legal obligation to pay this debt. Any attempt on their part would be simply wasting their time and money.

3) Demand that they "Cease and Desist" all communications with you. This means no more phone calls or letters. If they do, you have grounds to sue them under the Fair Debt Collections Act, and you can win $1000 in the lawsuit very easily.

What this also does is tell them to either sue you, or drop the collection altogether. If they sue you, simply file a motion to dismiss based on the expiration of the SOL. That will stop the lawsuit dead in it's tracks.

Don't sweat it...and don't feel like a deadbeat! As I see it, you have already "done your time" because they trashed your credit history for the past 7 years.

Answer 3

This debt has probably been purchased by another entity, which paid next to nothing to get the right to collect it. And the additional money would be due because that was the initial agreement (it probably is interest and late fees). However you are beyond the statue of limitations, so I would send the company a letter asking them not to contact you. Send it certified so you have a record of it. If they contact you that could be harrassment, then your state's consumer act may help you.
I would even contact a local consumer attorney, usually they will give some good advise for free.

Answer 4

I would write them and point out that the statute of limitations is up and they have no right to pursue this debt. I would also point out that their claim for eight times the original debt is extortionate and unacceptable. Finally given that the statute of limitation is up I would threaten to take legal action if they place this item on your credit report.

Over such a small debt there is a good chance they will back down. The cost of taking you to court would probably be pretty high, and their case does not look too strong after 10 years.

Answer 5

Shifting debt round is a foul thought. When you do steadiness transfers or coins advances on bank cards,, there's a price of three% to five%, relying at the card phrases. Interest starts to accrue instantly on the a lot better coins improve cost. Your to be had prohibit for coins improve/steadiness switch is ordinarily a lot scale back than the acquisition prohibit -- part to 2-thirds. Check your announcement to look should you also have any to be had coins improve prohibit. You most often should not have ample to be had prohibit to switch $four hundred. Your debt to restrict ratio is founded on each and every card AND total -- total being the largest element. Both your debts are sporting balances of greater than 30% of the prohibit. Shifting from one to the opposite may not support both account. Definitely may not upgrade your total. Don't fear approximately your rating. Worry approximately discovering methods to repay the ones debts. Concentrate at the maximum curiosity account -- the quicker you pay that off, the fewer curiosity it'll rate.

Answer 6

Hmmm, not sure, you need to see if you have any of the documentation from when they said it would be taken off of your report, but debt usually doesnt just go away. That amount could be compiling of interest and late fees over the years for non payment. Also 10,000 debt is not a extreme amount. With my car and credit cards I am in for about 21,000 right now, but i make monthly payments.

I will call them and ask them about what this is right away.

Answer 7

There is a statue of limitation that runs from the date of last activity ( that would be the last payment or promise of payment)

So first don't promsice them anything at this point, talk to an attorney. Your promice to pay can actually obligate you to some debts.

Next the statue of limitation only means they can no longer sue you in court, they can for as long as you live, still attempt to collect a debt but just can not sue you in court.

Answer 8

I agree with Studly.

I just wanted to add a couple of things.

I'm wondering about when you said that you "refinanced your debt loan". Did you make a payment on that account?

If not, then they cannot place it back on your report.

You might check out the site I've listed, it explains the statute that proves the account is considered open or sale of goods for the statute of limitations.

Answer 9

the only way to Reduce Credit Card Debt is by consolidating your bills into a monthly payment, this is called debt consolidation.
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan
however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,

a good place to start in my humble opinion is an online ebook :

you can read it for free at:

http://umgarticles.atspace.com/debt-consolidation.htm

Answer 10

I am curious too about this.. I don;t think they can and I think you have recourse about disputing the debt.. either way I would check with an attorney..

Hugs.. I know what you are going through.. I am 29 too!

Here's to being debt free by the time we are 35!