Comments on: An Old Zombie Debt Has Resurfaced. What Should I Do? – Greg

By: Steve Rhode

Steve Rhode — Mon, 07 Jun 2010 13:45:21 +0000

Kevin,

Excellent observations but a couple of points.

Just because a debt is beyond the statute of limitations does not mean that collectors can’t attempt to collect on it, even aggressively. It just means the person can’t be sued.

While the date on the debt isn’t technically supposed to be changed, it happens, especially when a debt is sold from one company to another.

Finally, remember that a cease and desist letter does not apply to the owner of the debt. The owner may be the collection agency contacting the person, especially on an old debt.

Steve

By: Kevin Lulham

Kevin Lulham — Sun, 06 Jun 2010 17:41:16 +0000

Steve wouldn’t a cease and desist letter and denial of the validity of debt after sending the creditor a notice that the Statute of Limitations was exceeded mandate the collector no longer bother/harass the alleged debtor?
Also after 7 years (From the date of initial reporting on the debtors credit rating)they can not report to the credit agencies again.(retime a report)
I am presuming both these point would need to be outlined in a written letter by the debtor to the collector. Also what does one need to write in the letter to address that if the creditor fails to write back?I was thinking that asking for written confirmation back if they contest thisstatment would be manadatory and failure to write after reciept of a confirmed letter (with US postal delivery confirmation)would serve as record would serve as legal record Is this correct? What other methods can they use besides writing letter asking for funds or following FDCA rules regarding other forms of contact?

By: Steve Rhode

Steve Rhode — Sun, 06 Dec 2009 21:11:08 +0000

Greg,

There is nothing that prevents them from collecting on a valid old debt. The statue of limitations does not prevent this. If you feel you’d rather deal with this moving forward, that’s your choice. Just make sure as you move forward, that you keep any documentation showing that a debt has been paid in full with your other important papers you need to keep forever.

Good luck.

Steve

By: Greg

Greg — Sun, 06 Dec 2009 18:13:14 +0000

First part – Check credit report – Clear
Second part – Decide to pay them to shut them down or not
Decided no on this one. Paying them for a dubious debt is a form of blackmail in my eyes. If they can’t collect they can’t pay their people. And every business needs money to keep going. They’ll have to get by without mine.

By: Steve Rhode

Steve Rhode — Tue, 01 Dec 2009 21:35:30 +0000

Agreed. But the constant hounding or contact can get really annoying. Better to deal with it than ignore it or try to hope it will go away.

Steve

By: Thirtysomething Finance

Thirtysomething Finance — Tue, 01 Dec 2009 21:02:37 +0000

Right, but doesn’t that suggest that there isn’t anything the creditor can do to collect the bill? Unless it already has a judgment, it can’t fix the judgment and thus can’t execute on it. All it can do is hound the debtor.

Not to say that he shouldn’t pay it, if he owes it and can pay it.
.-= Thirtysomething Finance´s last blog ..PAYDAY! =-.

By: Steve Rhode

Steve Rhode — Tue, 01 Dec 2009 20:38:33 +0000

A debt can be chased until the debtor dies and then the estate can be pursued. The statute of limitations only limits the ability to sue, not chase for collection.

Steve

By: Thirtysomething Finance

Thirtysomething Finance — Tue, 01 Dec 2009 19:51:09 +0000

A twelve year old debt? You might want to consult a lawyer to see whether they can even pursue this debt against you -- that debt is pretty old. .-= Thirtysomething Finance´s last blog ..PAYDAY! =-.