An agency is trying to collect a debt I have from 12 years ago, isn't there a statute of limitations?

Question

I owe sears like $300 from twelve years ago. I was young and stupid and actually have paid off thousands in credit card debt since then.
Here's the facts :
The debt is from 1995, original amount of $295, the agency wants $700 now. The state is PA, there has been no activity on this account for over ten years. I admitted over the phone to some stupid collection agent in NV that the debt was mine from a long time ago, but haven't done anything else.

Answer 1

The statute of limitations isn't how long a collector can hassle you about what you owe... it's how long before they can no longer file legal action against you... in most states. There are a few states, I believe, that along with the legal limitation, if you tell them to "Cease and Desist" that they can no longer call you or transfer the account to another agency.

Answer 2

There are 3 different time frames in play.
1. Your credit report can show a past due account for 7 years.
2. The can sue you for payment up to the Statute of Limitations in PA. I don't know how long that is.
3. You actually owe the money forever or until you pay them.

If you have signed any paperwork connected to Sears, such as applying for new credit, or entering a contest they were running, you may have agreed in the fine print to honor the old debt. That would reset the clock on all of the above.

Answer 3

Several of the previous responders completely missed the point. The Question asker said that the debt was REAL and that he owed it ... so any of the answers from people saying tell them to go away or threaten legal action, etc. are not valid. This kind of debt does exist and is becoming so prevalent these days that it even has a name ... it's called Zombie Debt ... Zombie in that it still lives long after you thought it was dead. What happens is that these collection agencies do searches of major credit issuers (in your case sears) and look for old debt still on the books and they offer to attempt to collect the debt for a huge percent of the debt. Example: You originally owed $300, the interest and fees have increased the debt to $750 ... and sears may have pretty much decided to forget about it, but a Zombie collector comes along and offers to attempt to collect on the debt for say 50 -75 % of what they get out of you. So they have a HUGE incentive to hound you ... they can employ people to hound you day and night trying to get the money ... eventually you'll break down and agree to pay them and they get a huge percent of the money and sears gets whatever tiny amount is left over and sears is just happy because they get something on the debt.

For the record, there is NO statute of limitations on debt ... if you owe it, you owe it ... unless you declare bankruptcy it'll always be there unless you pay it or take other actions. But .. their are things you can do about zombie debt ... check out Dave Ramsey's teachings on the net ... they'll help you a LOT!!

Answer 4

You are likely well beyond the statute of limitations for Pennsylvania. This is widely reported as 4-6 years in PA, depending on the type of contract.

They can continue to pursue collection on the debt indefinitely, although there is little they can do if you exercise your rights under the Fair Debt Collection Practices Act.

In some cases, collectors can renew the date of last activity on your credit report if you admit to owing the debt. However, even if this happens, you can frequently get this removed by disputing the debt with the credit bureaus. It is very difficult for a collector to prove that you made a verbal admission.

Answer 5

Do they hold a grudge or what? I thought most states and/or credit agencies had a 7 year policy. Even the IRS can only hold you liable for 10 years. Sorry I don't know where you can go for help but I think they should leave you alone. If it still shows on your credit report, it may be worth coming to a settlement with them to improve your credit. They'll take less than the $ 700 to get it off their books.

Answer 6

The statute of limitations in Pa is 4 years, and the 7 year credit reporting clock is lapsed too. Tell them to buzz off.

Answer 7

I had a very similar situation with Chase. I owed them thousands of dollars from a credit card I had at Temple U. It fell off of my credit report after 7 years and no payment from me.

A few years ago, a collector contacted me and tried to get me to pay. This was despite the fact that I had my mortgage, car note and another card through Chase (my credit was much better by this time).

The collector was SOL.

Answer 8

I thought that there was a statute of limitations. I have heard of companies who try to collect on really old debt like that, trying to "scam" people out of the $$, even thought the statute is up. But your best bet is to contact a lawyer.
Good Luck

Answer 9

Write them a letter and tell them only to write you to tell you they are dropping issue or the name of you lawyer. The statute of limitations on a store card is four years in MO and I am sure it is about the same in your state. Tell them not to call you and that you will consider suing them for harrassment if they continue. This is a non issue. If it shows on credit report demand that the credit report company removes it now!!

Answer 10

PA statute of limitations is 6 years for an open-ended account. Go to http://www.creditinfocenter.com/rebuild/statuteLimitations.shtml. Legally they have no authority to put that onto your credit report.