How long can agencies try to collect debt?

Question

My husband's exwife used his POA in a state that allowd her to take out large amounts of credit in only his name. I am now getting calls from collectors for debt from 1998. It is no longer on a his credit report. How long will thos continue?

A little more info: it was a second mortgage on a house in Co. We are in NC. The house forclosed and neither are on his credit report. The last activity was in 98?

Answer 1

Check the collecting SOL in both your state and the state where his ex lives.
I have a link listed in my profile where you can find the correct collecting SOL for those states.

Depending on the type of debt, it's possible that the accounts may be out of the collecting SOL if it has been since 1998.

If they are credit cards, they would fall under open accounts.
If they are loans, they would fall under written accounts.

For the start of credit card SOL, it would either be from the first time the account was 30 days late and never brought current leading to the charge off OR the last payment or charge made on the account before it was charged off.

For bank loans it would start from the last payment.
For repo's it would start on the date the vehicle was sold creating the deficiency.

Legally a collection agency MUST send something in writing concerning the account within 5 days after telephone contact with your husband.
Wait the 5 days and send a debt validation letter. Send it certified mail return receipt. Do not let your husband sign the letter, type his name or have him "print" his initials.

Order his credit reports and see if they are reporting.
If they are, after you receive the signed green card from the cert. mail, file a dispute with the CRA's for any inaccurate information being reported (there probably is)

If your husband is out of the collecting SOL, after they respond to the validation request or after 35 days (whichever comes first) send a SOL letter - certified mail return receipt. Again, no signature.

I believe that is only one or two states that have a 10 year collecting SOL for credit cards.

If the account(s) were bank loans, there is a "possibility" of him still being within SOL. If that is the case, he would probably have to go after his ex for the money.

You might click on my profile not only to find the SOL but to do some reading in the FDCPA, FCRA etc.

***You might go to the last link I have listed, in my profile, and do some reading. Feel free to ask any questions you may have in the credit forum.
You will also be able to find debt validation letter templates.

edit+++++++++

It shouldn't be on his reports since it is past the reporting SOL.

The collecting SOL for written contracts and judgments:
Colorado SOL
Written Contract: 6 (signed promissory note)
Domestic Judgment
District Court-20 (renewable every 20)

NC SOL
Written Contract: 3
Domestic Judgment: 10
Foreign Judgment: 10

If this was from 1998, your husband is far past the collecting SOL - unless - they had gotten a judgment against him and are collecting on the judgment. Unless they sued and won in NC, they would have to domesticate the judgment to NC to collect from him.

Check the county court websites for both the county you live in and the county in Co. where his ex had lived and currently lives.

If no judgment, then they are probably only going by the written contract and foreclosure.
If there is a judgment in your husbands name, and he was never served, you might contact an attorney.

Collection agencies (that includes collection attorneys) must be licensed and bonded in NC - with a possible exemption for out of state collectors, contact the state authorities, Department of Insurance for NC, to check

http://www.ncleg.net/EnactedLegislation/Statutes/HTML/ByArticle/Chapter_58/Article_70.html

Answer 2

If the now defunct hospital sold your debt to a collection agency, then the collection agency has a legal right to attempt to collect the debt. They also have the legal right to assess interest while the debt is unpaid. That's the law. I don't know how long it's been since you incurred this debt, but if the hospital is no longer in business, who is going to file the claim now with your insurance company? You should have followed up on this when you first knew the bill was not paid. Waiting this long may preclude you from any resources the insurance company would otherwise have offered. If the collection agency bought a legitimate debt, then the credit reporting agency isn't going to remove it from your credit report no matter what you do unless you can work out an agreement with the collection agency to remove it in consideration of paying the debt. If you do that, be sure to get the agreement in writing because collection agencies are known to tell a debtor any lie they can to get their money.

Answer 3

You should find out what the statute of limitations is in that state. If it's beyond the legal time period, then the collectors cannot legally collect it, and your best bet is to not say anything to them other then for them to not contact you anymore. I have recently read about this, it's called "zombie debt"; debt collectors buy debts that have expired and try contacting the debtors to see if they can get anything from the debtors, even when the collectors know that legally the debtor is not responsible for it anymore. Try looking up "zombie debt" on the internet to see exactly what advice they give regarding this. The question that I have though is did your husband's ex-wife commit fraud by using his POA?

Answer 4

Some agencies will try until you are 6 feet under and they will try to sue your estate.

Answer 5

They will continue A. until the debt is paid off. Or B. until you die.

Answer 6

until it is paid or he goes to court