How long does a company have to collect an old debt?

Question

I got a bill in the mail today from a collection agency from a bill I had never seen, though I recognized the original billing company. When I called the collection company they said they had bought the company's old debt, and that this debt was from July 1997. I then called the original company and after some searching they found that it was an old bill from my husband's first house, originally billed on July 18, 1997. When I asked them why this is the first time in nine years that we've seen anything on it, even when we bought our house in 1999 (and a $60 bill showed up from somebody else on his credit) it didn't show up. I was told it was written off, and that we never saw it because it was never pursued. Can they still come after us for this after nine years (and this is the first correspondence for this debt)?

I live in Minnesota, so I imagine it would have to go by the laws here.

The debt itself has nothing to do with the house we bought, it was just that when we bought our house in 1999 there were some things that came up on my husband's credit and this was not one of them (one of the things was a $60 bill to the city, and then some loans that were past due). I just didn't understand why the $60 bill would show up, but this hadn't.

Answer 1

Statute of limitations for Mn.

Goods Sold & Delivered (UCC): 4
Open Acct.: 6
Written Contract: 6
Transportation Service: 3
Domestic Judgment: 10
Foreign Judgment: 10

Since this does not sound like a judgment, you are long past the SOL in your state.

Send the collection agency a debt validation letter, send it certified mail return receipt (create a paper trail). Be sure to send it within the 30 days after you had received that bill from them.

After you get a response, or get no response in 35 days, send them a SOL letter, certified mail return receipt. Which basically tells them to take a hike because the bill is no longer legally collectable.

I would suggest going to the site I've linked and do some reading in the newbie forum and the credit forum. Learn your rights in dealing with this company.
You can also find sample validation and SOL letters on that site.

Everything on that site is "free" to read and use. Never pay a website for info that you can get for free.

Answer 2

Follow Echo's advice exactly. VERY IMPORTANT!

What concerns me is your comment that this debt involves payments on your old house. So I'm very confused.....was it forclosed on? Sold? What is the exact status of that loan?

Note that written contracts and Oral (Credit card, revolving credit) have a 6 year SOL in your state. But since a house is involved, there should have been a mortgage lien placed on the house. I'd need to research it a bit more to figure out the legal aspect of this (NOTE: I am NOT a lawyer). I just wanted to point this out because it could throw a monkey-wrench into your defense plans.

By following Echo's advice, they will be forced to "validate" this debt, and send you evidence to show exactly what this bill is for. That includes contracts, mortgages, or whatever.

Contact your secretary of state's office (or whoever maintains lien records) and see of your husband has a lien already against him.

In my state, liens can stay with you a very long time.

Answer 3

Check the below site for details on the statute of limitations in your state. These debt collectors prey on people who have gotten their life together and are so horrified by a collection agency that they pay the debt. Don't agree to pay the debt, under any circumstances! It could set the "clock" back to zero. There are sample letter available to get these scavengers to stop calling you. It probably won't end up on your credit, but if it does, you can easily get it removed by the credit reporting bureaus.

Don't lose any sleep over this one, but do take care of it so they don't continue to harrass you. Good luck!

Answer 4

The above posters are partially correct.

The expiration of the Statute of Iimitations means that they can no longer sue you and get a judgement but its up to YOU to provide that defense to the court when they try. If you don't present the expiration in your defense they will probably get a default judgement against you.

They can keep calling you and sending you letters to try to collect it forever though, long after their "legally enforceable" means have expired.

Answer 5

There is a statue of limitations, but I think each state is different....like 10 years in some states.