I just received a letter from a collection, first time since 1996.?

Question

I recently received a letter from a collection firm. stating that i owe money for phone services that were established on my name in Florida and the reference address they have on file , the address that i never lived at. But they dio have my SS#. I honestly think that it was a fraud, maybe my ex did it. I dont know, i did put alert on my credit just in case.And checked my credit report to see if there is anything unussual going on. And everything is fine. So now i told them that it looks like a fraud, and I also said taht what they have is not valid because iots over 7 years old. So they said that it cant go on on my credit report and but they can still collect the money??????? Can they? My question is if i send back a fraud paper work, will it be considered as new open dept?

Answer 1

There are collection firms that buy huge blocks of uncollectible debts for very little money, often less than a penny on the dollar. The older the debt, the less they pay. The payback for them is that they don't need to collect much at all to return the "investment" and then anything beyond that is pure profit.

For example, they may purchase $10,000,000 worth of chargeoffs for $50,000, or 1/2¢ on the dollar. If they collect on only 5% of that -- an entirely reasonable target -- they'll pocket a cool $450,000 in profit.

If the Statute of Limitations on the debt has expired they can't force collections but if you admit to the debt or make any payments, that will recycle the SOL clock AND allow it to be dumped back onto your credit report.

You should check the SOL for your state and be guided by that. FL has some of the shortest SOL in the nation on debt collections, typically 4 or 5 years unless the creditor already has a judgment so in all probability this debt is uncollectible. Do NOT admit to the debt or send them any payment whatsoever. It would be best to simply ignore them at this point. If they call you, tell them to not call any more. If they send you anything in the mail, simply shred it and discard it.

Answer 2

How does the Statute Of Limitations affect my credit report

The Statute Of Limitations and your credit report are totally different from one another and has nothing to do with the length of time debt can stay on your credit report.

The law states: A consumer reporting company can report most accurate negative information for seven years and bankruptcy information for 10 years. There is no time limit on reporting information about criminal convictions; information reported in response to your application for a job that pays more than $75,000 a year; and information reported because you've applied for more than $150,000 worth of credit or life insurance. Information about a lawsuit or an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer.

What to do if you are contacted by a creditor and the debt expired under the Statute Of Limitations

The only thing you need to say to the collector is, "I have an absolute defense because under the Statute of Limitations, the debt has expired."

Just remember that The Statute of Limitations does not cause your debt to disappear after it has expires. If a creditor files a civil lawsuit, the person has an absolute defense to use against the creditor in court. They must present the new evidence in the court to avoid a potential judgment. You file the proper papers to the court to support the claim of a absolute defense. If the creditor tries to sue ,in a court of law and you do not prove to the court that the Statute of Limitations has expired, then you will have automatically lost lawsuit and a judgment will be issued against you.

Answer 3

I believe they can still put it on your credit (Ask Lawyer)
I would call the phone service people and find out about the bill (talk to a supervisor) maybe have proof ready for them that you never lived there (phone, electric,or credit card bills from same time frame.could be a ssn # error. if it is not that much money I'd just pay it and save a bunch of trouble
if you have a collection on your credit you loose points and can be denied credit until its paid off

Answer 4

The debt is still collectible they can not take you to court for a judgment if they are outside the SOL for your state.