I have a 200.00 19 yr old debt which they are saying is now 1,385.17. When I checked my credit report it stated that the company had written it off long ago. Using my parents address a collection agency contacted me yet again. Can anyone tell me why this keeps surfacing and how I can get it to stop? Do I have to pay 1,300 plus for a 200. debt? And like I said I stated above, it was 19 yrs ago.
2007-05-06 02:44:05 · 5 answers · asked by wendy b 1 in Business & Finance ➔ Credit
In the US, delinquent accounts can only show on your credit report for 7 years. Payments after the account becomes delinquent do NOT reset the clock. The limit for credit reporting under Federal law, has noting to do with actually owing the money. Most states have a Statute of Limitations that limits the time you can be sued to collect. That limit has probably expired. Contrary to popular belief, that does NOT mean they can no longer collect, only that they can't legally enforce collections. For a 19 year old debt, you can forget the interest and penalties and offer around 10 cents on the dollar from the original $200 as a settlement. Be sure to get a written agreement to accept you payment as "Settlement in Full" before you send them a money order. You don't want to send a personal check. If they are still trying to collect after 19 years, giving them your checking account number is asking for even more headaches.
2007-05-06 08:20:57 · answer #1 · answered by STEVEN F 7 · 0⤊ 1⤋
Collection agencies buy the written off debt for a few pennies on the dollar, and then try to coerce the unsuspecting person that they still have to pay the dept.
You do not have to pay it, and there is a government agency you can report the collection company to, that will contact the collection agency and stop the harassment by the agency.
2007-05-06 09:56:46 · answer #2 · answered by festus_porkchop 6 · 0⤊ 0⤋
The statute of limitations has most certainly run out on this debt, unless you have made a payment on it recently. If you make a payment on the debt you restart the "timer" and the collection agency can restart their collection efforts. There are many websites you can find that will tell you what the statute of limitations is for your state and the type of debt. Do a yahoo search and you will find plenty of them. Good Luck!
2007-05-06 11:10:41 · answer #3 · answered by GUS 4 · 0⤊ 1⤋
Hi Wendy
What country do you live in? In the UK, debts that have not been chased for over six years are 'statute barred' and you would therefore not have to pay it. If you're based in the UK, the website below has some sample letters that you can send to the debt collection agency involved.
2007-05-06 10:35:31 · answer #4 · answered by Anonymous · 0⤊ 0⤋
It seems like there should be a statute of limitations on this kind of debt. But short of hiring a lawyer to close this out one way or the other, it looks like it will continue to haunt you.
2007-05-06 09:54:22 · answer #5 · answered by Angie 6 · 0⤊ 0⤋