Charge off Acct from 1995, do we owe it???

Question

Hello,
My husband bought a TV in 1990 and never paid on it (don't ask me why) from a store called McDuff. In 1994, McDuff filed for banqrupcy and closed and in 1995, the collection was charged off. Now, on the 3rd day of Jan., 2007....12 years later.....they called me and told me that he still owes this debt and he must pay it. It already came off his credit....it obviously didn't hurt us getting our house 5 years ago....plus, they tacked on like $300 on top of it. So the whole amount is like $400 they are saying he owes. I'm not proud of my husbands past financial mistakes but does he really owe this debt and what can they do to us??? Thanks!

Answer 1

Dont' pay it. they cannot collect because the statute of limitations has run out. I had this happen to me and a lawyer told me not to pay that they just think they may get you to pay it. So, if they call again, tell them your lawyer said the statute has ran out and they cannot collect. A lawyer will give you a free consult if you do not believe me. Hope this helps

Answer 2

The fair debt collections and procedures act has some interesting info you should read up on before responding to the collection agents mail or phone calls. There is a statute of limitations on collecting of old accounts. Many collection agencies will pay a few cents on the dollar for these old signed off accounts. If they can trick you into making a payment, setting up a repayment plan, or acknowledging the debt that statute of limitations time frame can restart. This is a very underhanded predatory practice and they make millions per year off unsuspecting victims. On the other hand we must also address the fact that when an agreement to repay is made, it should be honored. Follow your conscience but dont reward some predatory opportunist by paying them their stipend when often the original creditor wont see any of what these scam artists make off of you. Heres a link to a great article that covers this scam.

http://articles.moneycentral.msn.com/SavingandDebt/ManageDebt/ZombieDebtCollectorsDigUpYourOldMistakes.aspx

A link to the fair debt collection and procedures act.

http://www.privacyrights.org/fs/fs27-debtcoll.htm

And a link to the state statutes of limitations regarding debts.

http://www.privacyrights.org/fs/fs27plus.htm

Answer 3

First you need to check the statute of limitations for your state. I'm fairly sure that by now it has expired but these types of companies are betting that you don't know that and that you'll pay the debt anyway.

The status of limitations expires in a specific time period from the date of last activity (i.e. payment). If no payments have been made since the debt charged off then you should not even consider making a payment...the debt is "dead" as far as the law is concerned.

After checking your state's statute of limitations you should send a letter to this company advising them that you are aware of the statute and to cease all communications with you. Keep a record of all calls and a copy of all communicaes from them. If they continue to harass you then you can quote section 805 (c) to them from the Fair Debt Collection Practices Act (FDCPA). You can find a copy of this federal act at www.ftc.gov/os/statutes/fdcpa/fdcpact.htm. If your husband has any other such "ghosts" in his past then you'll need to become very familiar with this act and the statute of limitations.

Answer 4

Whatever you do, DO NOT PAY THIS.

The statute of limitations has run out - HOWEVER - there are some shady companies who buy really old debt for pennies on the dollar, and make their money by scaring people into thinking that they owe money on debts that are LONG gone. If you send them even a dime, the statute of limitations will reopen in some states.

You need to get on the internet and look up a "DROP DEAD" letter. Write this company a drop dead letter and tell them to get bent. Absolutely say NOTHING in the letter that "admits" to having owed the money. Flatly state that you do not owe this money and that they are to stop contacting you by any means whatsoever.

Do not be fooled.

Answer 5

Its a mystery how those collections thugs get away with so much. Its kind of like extortion. If you dont pay what they want you to pay they will put it back on your credit report and it just keeps renewing like that. I've had a $412 collection keep re-appearing on my credit report too. I contested it at least 3 times and it gets removed each time because its not mine. Few months later it reappears. Start all over again. Thats been going on since about 1995 too. Too much emphasis is put on that stupid report anyway. Just ignore it and them. Its a slop shoot. They randomly throw crap in there and try to make a few more bucks off us.

Answer 6

I took a Business Law class this summer and was told by my professor that the statute of limitations was (I believe) 3 years. If it has been more than 3 years since they last contacted you, they can not collect the debt. Unless, YOU initiated the contact. DO NOT give them a penny.

Answer 7

don't pay these people a dime, this guy saying paying a dollar would be very dumb to do, if you do that it will re age this debt, really mess your credit up. send them a letter to cease all communication to you with this debt and tell them it is outside of you SOL. send it certified. You need to watch acouple of things, these companies that buy old debt are the most unethical people on the earth.
her is what to watch.
Then re aging the debt and adding misc fees with that
Theating you with a lawsuit
contacting you after you sent the ceist and desist letter
...
if they do that you can sue them and people have.

Answer 8

Some collection agency paid less than $1 for your account. You likely have no legal liability to pay it. You should verify that the statute of limitations has expired (varies by state).

If you send them a cease and desist letter, then any further collection attempts by them can leave them liable for damages.

Answer 9

nicely, i have self assurance many organizations write off the steadiness as undesirable debt (loss) even as they deliver the account over to a series organization. After the series organization accrued the money, organization and series organization each get a % of the quantity it truly is accrued (ofcourse, not each organization is the same) to respond to your question, sure, they could and probably will deliver your document over to a series organization to assemble on it. in the different case, series organization must be out of organization already.

Answer 10

yea do not pay chwck your credit report every year though just to be sure