when i called this collection company who has the bill they said the phone company switched hands back in the mid 90's and is just now selling their debts to collection agencies. the company has never tried to collect this debt and i dont feel i should be liable for a debt to a company that went out of buisness. i looked up the statue of limitations and it says that "open accounts" are closed after 5 years. is this considered an "open account? " or does anyone have any other tidbits of wisdom i can use when i talk to this collection agency again? thank you all!
2007-09-30 10:38:17 · 5 answers · asked by wesley s 2 in Business & Finance ➔ Credit
No, you have no legal obligation to pay a bill that is past your state's statute of limitation. The collection agency may try to collect from you banking on your ignorance of your rights.
Send them a letter by registered mail stating that you are aware of your rights and that they cannot contact you anymore.
Some unscrupulous agencies may even try to sue you. If that ever happens and to avoid a default judgment against you, you must answer the summons. Use the SOL as an affirmative defense, and the lawsuit will be dropped.
2007-09-30 11:17:07 · answer #1 · answered by Ti 7 · 0⤊ 0⤋
The Statue of Limitations in the Federal law is 4 years and therefore no state can make it more than that. Whichever law affords more protection for the consumer will be the law of record. So, if they do sue you then use the Statute of Limitations as an affirmative defense. You will not be responsible for anything. Also, most ancient debts can't be credit reported. But, if your conscience gets the best of you and you feel you should pay your legal obligations; negotiate. They will always settle.
2007-09-30 12:53:36 · answer #2 · answered by Enlightened 1 · 0⤊ 2⤋
If they went out of business, your debt to them was an asset which could be sold. Their status doesn't affect whether it's a valid debt.
Your only recourse is the Statute of Limitations, which is 5 years from the date that you went delinquent.
However, here are rules that they have to follow or you can report them to the Illinois Attorney General:
http://www.ag.state.il.us/consumers/debtcollection.html:
2007-09-30 11:08:20 · answer #3 · answered by Ted 7 · 0⤊ 0⤋
In some states, the statute of limitations goes back 15 years. But Illinois isn't one of them. You can call them and talk to the company, and get the skinny. You have nothing to lose.
2007-09-30 12:09:42 · answer #4 · answered by Steveo 5 · 0⤊ 1⤋
well they have to validate the debt and since they purchased the debt they have to prove it to you. Don't talk to them on
the phone, make them put it in writing and don't take their
calls
read thru creditinfocenter.com
2007-09-30 13:50:51 · answer #5 · answered by Anonymous · 0⤊ 0⤋