If a collection agency requests payment on charged off debt that was never on credit report, do I have to pay?

Question

I received a letter from a collection agency addressed to my old name. I found it to detail an amount owed that I didn't recognize. I contacted the company (the person was very nice and helpful - Thankfully) - he advised me that it was a charged off debt that they bought from a company (He couldn't find any info as to the name - it was from a larger company that had store accounts, the account was in my name as well as my husband at the time and it was charged off in 1996 (before my divorce)). Now, I have amazing credit and this charge was not on my credit report as of 2005 or I wouldn't have been able to refinance my home by myself. Does anyone know the ramifications of this "bought" debt collection? Does the state's statute of limitations come into play? I don't want to pay for something that is part of the dregs from my previous marriage because my ex didn't pay his bill. I hope my explanation is clear enough. Thanks so much!

Answer 1

Well, the moral thing to do is to pay ALL DEBTS that you made the promise to pay.

I would obtain proof that you owe the debt.... it sounds like something you are not sure you even owe, and if you do rally owe it, then maybe consider settling for like 15% of the balance, which after this much time, they will probably take.

Just because it has been 11 years they can still haunt you and drive you insane if nothing else.

Answer 2

Sounds like this debt should have been part of your divorce settlement where either you or your ex agreed to be responsible. If its not showing up on your credit report than it most likely wont hurt your credit but once they start contacting you this may be listed in the future. Just because a debt is charged off doesn't mean that it is paid off. The company just wrote it off as a loss but still has the right to sell the old debt to try to offset the loss. If its not much I would suggest that you negotiate a payoff and get rid of it for good. After all, you do still actually owe the money.

Answer 3

Most likely the statute of limitations will come in to play to help in this case, I don't know what state you are in, but you need to be careful if you are going to use the S.O.L. as your defense. The first thing you have to do is make sure the last time that you sent in any funds on this debt, so you have to do a lot of research. The S.O.L starts from the last time you sent in a payment, not the date the debt was incurred. The other question I have is, did you pull all three credit reports, or only one? Not all collection agencies report to all three bureaus, in fact the majority of them only report to one to save money. My advice if you haven't already done so, pull the other 2 to get the full picture. You can pull your reports for free from www.annualcreditreport.com

Answer 4

"Charged off" does not mean forgiven, it means that it is delinquent and has gone from current accounts to collections. It will remain on your credit report for a little over 7 years since you last made a charge or payment. But if the amount (still growing due to interest and legal fees) is worth pursuing, they (or a collection agency that buys the debt from them) may take it to court to get a judgment within the statue of limitations in that state. That gives them stronger means to collect (wage or bank account garnishments, liens, etc.) for another 10 years or so, or longer if that is renewed. Depending upon statute of limitations or judgment, they may still have the legal means to collect it after it drops off of your credit report. Web search "debt statute of limitations" in the state you lived in at the time, but if you moved to a different state, that may have been put on hold or might not apply.

Answer 5

Whether the debt is on your credit report has nothing to do with whether you are required to pay.

What does matter is that this is from 1996. The statute of limitations varies from state to state, but most are much shorter than 11 years. There are a few types of debts (mainly to the government) that last forever, but most debts to businesses do not have to be paid if this much time has passed.

Answer 6

Debts fall off your report after 7-10 years. I would not worry about it especially if your report shows your are ok. If you need to have an attorney look at it for a professional opinion. And don't give this no name, no info credit charge off agency any info. Could be a scam!

Answer 7

First off deny that it is yours, then they have to prove it, then casually mention that who's ever debt is is question you thought the statute of limitations on that kind of debt is only 4-5 years. If you admit the debt is yours, he can put it on your credit report. They may all talk nice, but are sharks

Answer 8

First off, a charged off debt is just that, charged off. It cannot be enforced or "bought" buy junk debt collection agencies.
Your state statutes come into effect regarding "time bared debts".
Here are links to find your states statutes.
http://www.fair-debt-collection.com/SOL-by-State.html

I invite you to join the following Yahoo group "DontGetRippedOff" dedicated to helping those in financial trouble, Here you will find information to help you with debt collection agencies.
http://finance.groups.yahoo.com/group/dontgetrippedoff/

Answer 9

well since they purchased the debt who said you owe them
money? You didn't tell them to buy the debt so write them a
letter requesting validation that you owe them the money

www.creditinfocenter.com

Answer 10

if you owe the money, you owe the money, it doesn't matter if you have married or changed your name. If the collection company " bought" the debt, then you owe them now. refusal to pay will be entered onto your credit report and your credit will be ruined.