Old Debt collection?

Question

I received a letter from a debt collector about an old debt... from about 1999-2000. I believe it should be dropped from my credit report by now but the letter says they have just purchased the debt and they can affect my credit rating. Does it matter that they purchased the debt or is it only the age of the debt that matters? I live in Maryland if that helps.

Answer 1

I just have to disagree with the majority of the posters answers.

The first two obviously have never - ever - read the FCRA or the FDCPA. .
Another poster, well I have no idea where they got the collecting and judgment SOL time lengths from. But definately not from Maryland's statutes.
Sending a request for validation or a SOL letter will not "re-activate or re-set" the account !!

Depending on the type of debt it was, IF the collectors letter is dated after it has been 7 years since the first time you became 30 days late and never brought the account current leading to the charge off (credit cards), or has been 7 years from your last payment (loans, etc.) - then they are violating the FDCPA by using threats to do something that they cannot legally do. (keep that letter somewhere safe to use against them should they try anything shady)

§ 807. False or misleading representations [15 USC 1692e]
(5) The threat to take any action that cannot legally be taken or that is not intended to be taken.

They cannot legally re-age the account and place it on your reports if you are past the 7 year reporting time limit.

As for the collecting SOL in Maryland
Both open and written accounts are 3 years. And if it is a general type of non government debt - credit card, general loan, etc., then you are past the legal collecting SOL for your state.

§ 5-101.
A civil action at law shall be filed within three years from the date it accrues unless another provision of the Code provides a different period of time within which an action shall be commenced.

If the account was for utilities - electric, cable, phone, etc., then it falls under the UCC for a 4 year collecting SOL

Order paid copies of your credit report from each CRA and check to make sure they have not placed the account on them.

Send the collector a debt validation letter before 30 days have passed from receiving that letter.
If you request validation within 30 days from the collectors first contact, the collector must cease all collection activities until they properly validate.

Never sign your signature on your letters to collectors. Only print your initials or type your name.
Always send your letters to collectors by certified mail return receipt.

IF they are reporting on your credit reports, after you receive the green cert. card back, send disputes to the CRA's for their trade line.

After the collector properly validates or 35 days have passed from the date they signed the green certified card, send them a SOL letter.

You might click on my profile and do some reading in the links I have provided. Especially in the last link listed where you can find validation and SOL sample letter templates.

Answer 2

Let me explain what happens to debts that don't get collected. As we all know if you do not pay your debt to any institution you owe they will send you to collections. If the first collection company can not settle the debt they will sell it to another debt collection company. This could go on for years. Normally these debt collection companies will not keep the unpaid debt more than a year. This is generally why you will hear about the debt year after year, but you will notice it is a different company. You should make sure the debt is truely yours. Check for the social security number they have on the debt. Be sure not to give them your number just ask for the last for numbers if it matches yours then you can readily assume it is a valid debt. If you give them your social they will change it if it is wrong and the debt will be yours then. I hope this helps. If you would like a free guide on credit repair you can download it at http://www.your-credit-solution.com . You can also get a free sample credit repair letter should you need that.

Answer 3

The 7-year period shall begin, with respect to any delinquent account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity, charge to profit and loss, or similar action. If a collection agency or creditor does otherwise, challenge this in writing with the credit reporting agencies.

The reason is that consumers pay off collection accounts and charge-offs which they do not have to pay off because the Statute of Limitations has already expired for the account. Consumers pay off those accounts because the accounts still show up on their credit reports. People also pay off these accounts when they are not even on their credit report because it was already removed by the credit agency. This information can be a good tool for getting rid of old debts. Creditors only have a limited time in which to sue you under law. The Statute of Limitations law starts from the day the debt or payment on an open ended account was last due.

Answer 4

I somewhat agree with SCH. It all depends on the date of charge-off. Yes, this may be a debt from 99-00, however when did the company charge it off? In Maryland, they have 10 years to collect the debt from the date of charge off, called the statue of limitations. If they outsource this to an attorney in your area, they have the full 10 years to sue you. Then the judgement will remain in effect for an additional 10 years, plus the attorney can request a one-time extention for another 10 years. During all of this time you are being charged interest. If you get sued, you have to pay all the court costs. If they have your original application, they can charge you legal fees as well. All in all, it's best to settle the account as soon as possible and get it out of your life. Paying the account in full will always look better on your credit then settling the account. However, settling the account is WAY better then getting sued. If they sue you, they will put a lien on any property that you own, as well as record an abstract in your county so that you can't even purchase property without paying this off. They can attach your bank account and levy everything out of there up to the balance. Or, they can issue a wage garnishment... which will be 25% of your GROSS PAY, not your take home pay. It can get really ugly really quick.

Answer 5

Check your credit report first. See if it is there. Do not reply to the letter as it will reset time and re-activate debt.

You see, since it is an old debt although you owed who ever 175.00 the collection agency could have bought it for 20.00 because if it was a Charge Off the original creidtor called it a loss.

http://www.ficocounselors.com

Answer 6

Do not respond to this collection agency and do not send them any money. This old debt should have been retired. The second you talk to them or pay them a dime it can be put back on your credit report. These old debt buyers are sleazy. Report them.

Answer 7

I was in the same situation about a year ago. A debt from a long time ago reappeared to haunt me through a new debt collector just like your described, and it was only for $175. So I just ignored them and they went away, it didn't reappear on my credit report. I can't say that happens every time, but it worked.

Answer 8

confirm the organization is an analogous. verify the telephone numbers and different info on the invoice. you does no longer want any fraudulet organization attempting to get your cash. yet whilst that's genuine then you definately might desire to manage it. you will no longer might desire to pay for somebody else. in case you and your husband owe something from that element once you have been married properly you may desire to easily pay it off and recover from it. i might verify as you stated. do no longer provide out too a lot concepts. start up with the call and ask why the call is inaccurate. Then bypass over something of the substantial factors.

Answer 9

It is not the age of the debt that matters. Debt does not disapear after 7 years. People think that becaue it drops off your report after that long...what they forget is after 7 years the original creditor can reassign or sell the debt to a new creditor who then can attempt to collect the debt and start the 7 years all over again. You best bet is settling with them so you can get rid of it for good.

Answer 10

Agreed with SCH