My wife has credit card debts from 2002 and has collection agencies calling after the SOL...please help.?

Question

I live in NC and my wife made poor decisions and got several credit cards when she was 18 and now it's 7 years later and they are harassing still. I know in NC, the statute of limitations are 5 years and they are not allowed to call and harass. She has not paid on the cards nor promised payment in over 5 years so therefore time is up. What can we do to stop the calls and what kind of charges could be brought against them? If there is something I am missing about the statute of limitations please let me know but from what I can tell they don't have a right to be calling. Thanks for your help.

Answer 1

The time that the collecting SOL for credit cards starts depends on the state.
It would be either from the first time a person becomes 30 days late and never brought the account current leading to the charge off OR it starts from the last charge or payment made to the account before the charge off.

NC SOL is 3 years not 5 years
Open Acct.: §1-52(1)
§1-52. Three years.
Within three years an action
(1) Upon a contract, obligation or liability arising out of a contract, express or implied, except those mentioned in the preceding sections or in G.S. 1- 53(1).

Collectors in NC "must" be licensed and bonded to collect
To see if that collector is, look them up with the Department of Insurance for NC (I'm sorry I don't have a current link, but you can google the NC Dept of Insurance and look it up)

NC also has an excellent statute to protect a consumer from underhanded collection tactics. The following is only an excerpt from those statutes.

Sections 58-70-90 et seq. of the General Statutes proscribe certain acts and conduct by collection agencies engaged in the collection of consumer debts. Acts and conduct prohibited include threats and coercion, harassment, unreasonable publication, deceptive representation, unconscionable means, unauthorized practice of law and court appearances, sharing of office space with a practicing attorney or any type of lending institution. Violators of any of these provisions may be liable for penalties in a sum not less than $100 nor greater than $2,000, per violation. (? 58-70-130.)

You can find more info on the following NC legislation links
http://www.ncleg.net/EnactedLegislation/Statutes/HTML/ByArticle/Chapter_58/Article_70.html
http://www.ncleg.net/EnactedLegislation/Statutes/HTML/ByArticle/Chapter_75/Article_2.html

Once an account is past the collecting SOL does not mean that the collector cannot continue to try to collect.
If a person who "is" past the collecting SOL and informs the collector of that fact and tells the collector to cease & desist (C&D) (both facts must be in writing) then the collector must stop all collections. And, depending on how well the SOL letter is written, if the collector sells the debt to another collector after receiving the SOL and C&D, they could be held responsible for that violation.

Once an account is past the collecting SOL means that the collector can continue to try to collect but cannot legally sue.
Though they often do sue on SOL debts since the majority of people rarely answer the summons and only an extreme few use their rights in filing a counterclaim against the collector for their violation of filing on a time barred debt.

You might click on my profile and click on the last link I have listed. It is to a free to use credit discussion board. Do some reading and then you might ask for the link to the sample letter template for the SOL letter (which is also free)



The 7 year limit that the first poster commented on is how long that particular account can legally be reported on a persons credit report (unless the first posters state has a collecting SOL of 7 years)
The reporting period would be 7 years from the first time a person was 30 days late and never brought the account "current" leading to the charge off. If it is reported past that time then it has probably been illegally reaged.

edit
I agree with much of what bdancer posted but not the statement that your only alternative is to pay.
With a well written SOL letter and a C&D, you would effectively be stopping the collector from doing "anything" with the account, and be held accountable to you if they do continue collections (which includes selling the debt)

And, a "full" C&D should never be sent unless the account is past SOL, and it should never be sent unless it is included in, or attached to, a SOL letter.

Answer 2

You can sent them a certified, return receipt letter telling them to cease and desist contacting you. They must stop, however, be prepared for the debt to be sold to another collection agency and you will have to sent them a ceist and desist also.

You should also be very careful to respond to any summons. Some collection agencies will file small claim suits even if the debt is beyond the SOL. If you fail to show up, they will get a default judgment. The SOL is an affirmative defense to use in court.

Your wife should also pull her credit report. Negatives items can only be reported for 7 years and 180 days from the date of default. If these debts are beyond the reporting period, she should dispute any new entries from the collection agency. Some of the slimy collection agencies will try to re-age debts and put them on you credit report.

Your only alternative is to negotiate a settlement. You could probably settle this for about 30% if you did a lump sum payment.

Answer 3

Same thing happened to me. Got credit cards at 18 with my husband, he maxed out all of them and now I'm stuck with the debt. I'm 27 and still get calls. If you'll notice its not the original creditor that is calling. They most likely sold it to a collection company for a fraction of the amount your wife owes. Also, a lot of my accounts were sold right before the 7 year limit. I too would love to know how to get this off my credit and stop the calls. As for now, I don't answer the phone when a collector calls.

Answer 4

North Carolina Statute of Limitation

Express or implied contract, not under seal: 3 years.

Contract and sale of personal property under seal: 10 years.

Credit cards are generally considered Open Accounts.

Open account: 3 years, NOTE: Each payment renews the SoL on all items purchased within the 3 years prior that payment. If no payment is made, the SoL runs from date of each individual charge. Contracts: From date of breach or default, unless waived or performance under the contract is continued.

Judgments: 10 years

Partial payment BEFORE the SoL expires renews the SoL from date of payment.

Payment AFTER SoL expires renews SoL ONLY if, at time of payment, circumstances infer the debtor recognized obligation to pay. Partial payment on open account restarts SoL on purchases made within 3 years of payment date, if acknowledgment can be inferred, starts the statute anew as to the full obligation acknowledged, even if all of the charges were not made within the last three years.NC Continued...

Partial payment by one debtor does not renew the statute of limitations as against any a co-debtor unless that co-debtor agreed to, authorized or ratified the partial payment.

Partial payments DO NOT affect the ten-year limitation on enforcing or renewing judgments.

Bankruptcy, Death or Disability: Filing of a bankruptcy tolls the statute of limitations for the enforcement of contracts and judgments.

The death, minority, disability or incompetence of a debtor also tolls the limitation period until such time as a personal representative of the estate or a guardian of the incompetent or minor is appointed.

Answer 5

You misunderstand the statute of limitations. The statute only means that the deadline for filing LEGAL actions to collect has passed. There is no statute preventing the debtor from collecting in other ways, including what is happening to you and your wife.

What has probably occurred here is that the original debtor has 'sold' your debt to one of the assorted collection firms. While these firms cannot file any court action to collect the debt, they can make your lives miserable (including a whole new case in your wife's credit file) until you reach some sort of agreement to pay.

Answer 6

The credit card company's can continue to call once a day until a payment arrangement is made the other thing is there headquarters may not be in NC so they will have different statue of limitations. You can get a cease and desist but then they sell the accounts to other collection agencies and will be more aggressive in collecting on the past due accounts.

Answer 7

Do not speak with any of them as when you do, you are actually acknowledging the debt, and then it gets re-opened with harrassment triple-time. Nowadays, overage collection debts are sold to collectors for pennies and whatever they can do to get you to pay back even if it's 25.00, it's pure profit for them. Plus, if you do one payment and don't speak with them again or forward any payment, they can re-sell the debt to another collection agency who will start the process allover again.

If you're interested in clearing up the debt, get everything in writing and work out a payment plan, but have everything in detail on paper as they are notorious for selling the debt, making everything start all over again. Otherwise, I'd get legal counsel.

Answer 8

well, if your wife has spoken to them at all in the last 5 years, i think they can still call... even tho she didnt promise payment in the last 5 years, she may have talked to someone on the phone who has called, and they consider that, "knowledge of debt"... anytime you answer, and they tell you who they are and why they are calling, it starts the clock all over... do not answer the phone from suspisious numbers.. as far as charges against them? im not sure... i know that in ga, debt is supposed to be wiped clear within 7 years of the debt, i think. look up debt laws in n.c.