Is this legal?

Question

if i have an old credit account closed and charged off in may of 1999 is it legal for it to be transferred again and the new collector updates the debt to valid as of today on my report is this legal or can i sue them for fraudulent practices I have had zero communication with anybody in the entire 6 years.

Answer 1

Even though it is illegal, many collectors do file law suits on SOL debts. The reason they do is because many people do not know their rights and allow the collector to get a defaut judgment against them.

If a consumer is sued on a time barred debt, it would be up to the consumer to utilize their rights and file an affirmative defense of SOL plus file a counter claim for the violation.

If the consumer is past the legal collecting SOL for their state and a collector is aggressivly persuing the debt, it would be in the consumers best interest to send a SOL letter to the collector "before" the collector files suit.
Doing so would make the collector aware that the consumer knows the law and the collector probably would not take the chance in illegally filing suit.
Plus, if the collector is stupid enough to go ahead and file, the judge would not look to kindly on that collector for filing suit on a debt they "know" is time barred.

You need to check the collecting SOL for your state. You might click on my profile and click on the link I have listed to find it.

As far as after charge off payments and the collecting SOL, many states do NOT allow the collecting SOL to be re-set if a payment is made after the charge off.
Some states allow the collecting SOL to be re-set after the charge off IF a promise to pay is made in writing OR if a totally new contract for the account is signed.

As for the credit reports -

The 7 year reporting period for credit cards starts from the first time a person became 30 days late and never brought the account current leading to the charge off.

Once an account is charged off, "that" account CANNOT be re-aged to run for a longer period than it normally would have.

The only way the debt can be reported for a longer period is IF a totally new contract is made. The "original account" would still have to drop off at the original 7 year period.

Like I said above, check the collecting SOL for your state.
If your account is past the collecting SOL, you might send a SOL letter to the collector. If you are still within the collecting SOL you might send a debt validation letter.
Do everything in writing. Do not sign your letters, print your initials or type your name.
All of the letters to collectors should be sent certified mail return receipt.

After you receive the green card back from either the SOL letter or the validation letter, if the account had been charged off in 1999, you might send disputes to the CRA's for the obsolete account.
If the 30 days late and the charged off occured at a later time then you mentioned, and the account is still within the 7 year reporting period, you might send a dispute for any inaccuracies they are reporting (and they usually do report inaccuratly)

If they verify it without correcting it, or if it is past the reporting period and they verify it and it remains - then file complaints with the BBB, FTC, your AG and their AG.

As for suing, you could jump the gun to sue right away, but, without creating a paper trail that proves they are violating willfully, they can claim bona fide error and probably walk away.
Create a paper trail to show proof that they are violating on purpose.

You might do some reading in the links I have provided in my profile to the FDCPA, FCRA and especially in the last link I have listed.

Answer 2

That depends upon your state's statute of limitations on debt collections. That also depends upon what type of debt it is, i.e. contractual, open account, etc. The statutes vary from as little as 3 or 4 years to as much as 20 years.

As to updating the date of last activity and therefore its presence on your credit report, that may not be legal even if the debt is legally collectible. However, if you had ANY contact with either the origainal creditor or the collection agency, it may legally be back on your credit report.

You should challenge the item with the credit reporting agency, providing any information available. Most of the time they will drop old debts such as that from your credit profile. I had one that cropped up from the early 1990s and showed up on my report 2 years ago. It was an old account that my ex had opened while we were married and they put it on my record because we were living in a community property state at the time. I challenged it and it dropped off my report and hasn't reappeared.

Answer 3

When dealing with an old debt, it's important to know your limits. Once a debt passes beyond the statute of limitations in your state, a debt collector no longer has the right to sue you for payment. You may still have a moral obligation to pay back an old, forgotten debt, but you can't be sued over it.

Any debt collector who threatens to sue you over a debt that is beyond the statute of limitations in your state is in violation of the Fair Debt Collection Practices Act. Keep in mind that some states consider credit card agreements written contracts and other states treat card agreements as oral contracts. Still other states have specific statutes of limitations for credit card accounts.

For specific details on the statute of limitations on credit card accounts in your state, contact a consumer attorney or the consumer protection division in the office of your state's attorney general.

Answer 4

Echo's answer is perfect.

All I can add is to read the link below, as it discussed the Statute of Limitations in detail, and the differance between the SOL and the credit reporting period.

What they are doing to you is quite common, and they get away with it because you don't know the law, and don't know your rights.

Take some time to read the Fair Debt Collections Act and the Fair Credit Reporting Act....once the collection agent knows you are aware of these laws they will back off.

Answer 5

I doubt very seriously you can sue them for fraudulent practices , when it was you that did not pay your debit... you said 6 years , it stays on your report for 7 years ... I have heard of companies waiting a year or two before selling the account to a collection agency , look at the date on your credit report when the account was posted to your report , wait seven years see if it is gone , ...would have been less trouble had you paid your bills..

Answer 6

HEADS UP! I wouldn't listen to Studly. He judges people without even knowing the facts about anything.
He just goes around bashing peoples experiences and opinions without ever hearing the entire story.