A collection agency has contacted me about a debt that is no longer on my credit report. Should I pay it?
This item is from a credit card that was charged off nearly 10 years ago. It is no longer on my credit report. In fact, I waited several years until almost everything expired from my report and then began to rebuild my credit over the past year and a half and my FICO score is now 680. I have never been late on a payment since re-establishing my credit, so my short credit history is what is keeping it lower.
Anyway, I got a letter yesterday from a debt collection agency looking for $$ for an old credit card that I had forgotten about. As I said, this no longer appears on my credit report at all. It's only like $700, so I could probably talk them down to about $400, but I don't really have an extra $400 laying around. Should I even pay it? What would be the worst case senario if I don't pay it? What would happen if I do pay it? What are my rights in this situation? Help!
- Sgt Big RedLv 71 decade agoBest Answer
First off, send them a certified letter informing them that the debt is beyond the Statute of Limitatons for both your state and the SOL for CRA's
Check your states SOL here
most states it is anywhere from 2 to 6 years for credit card debt.
If it is indeed beyond your states SOL then mention in the letter that if they report it to any of the 3 CRA's that will be in violation of the following:
RE-DATING OF THE DEBT IN VIOLATION OF
[CITE: 15USC1681s-2] § 623. Responsibilities of furnishers of information to consumer reporting agencies
and you will seek civil suit against them under the US CODE TITLE 15 CHPT 41 CONSUMER CREDIT PROTECTION
this is no doubt a junk debt collection agencie that prey on people who do not know their rights. Check this link to see if they are listed:
If the debt is beyond the SOL all they can do is try and trick you into making a payment which would reset the state SOL and then you would have to pay it.
Information on time barred debts.
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.
LEGAL DISCLAIMER: The advice contained herein is for informational purposes only. It is not to be construed as Legal Counsel nor Legal Advice.
- 1 decade ago
YES, you should seriously pay it. Why?
1. Just because it doesn't report to the three credit bureaus doesn't mean that it isn't leaving a mark on your credit. When collection agencies pull your credit (as they can do after the seven years from charge off) it shows up in your inquiries. This not only hurts your score but is a negative factor when having your credit review by your loan officer (don't assume he won't ask about why they are pulling your credit).
2. It is a moral issue. You borrowed the money. Just because this happened seven years ago or plus doesn't mean you don't owe the money. Why be plagued with collection calls for the rest of your life?
Settle the debt. Just make sure to get a settlement agreement letter before providing them your checking/debit or credit card information (a letter that says if I pay x on this account it will be considered settled).
Additionally, sending them a cease and desist letter will more than likely result in the account being sent to another agency where you'll have to send another letter and a loop will begin! It happens. :)Source(s): Me, Myself & I...
- Anonymous1 decade ago
I'm not going to be as generous as Crazy...there are bad answers, and there are ignorant answers.
Madam, why do you feel this debt has not been paid? Why do you feel they deserve to collect this?
When a creditor fails to pay a debt, they are given two options. Pay up...or watch your credit be destroyed for the next 7 years. This person didn't pay, so they ended up with trashed credit.
Why on earth should they pay it now? Why pay the same debt twice? If you feel so bad about them not getting their money, then YOU pay them!
Also....the law is totally on the side of the creditor. All they have to do is go to court, get a judgment, and collect their money. It's so simple! Yet I am totally puzzled why creditors fail to do this! Why do they choose to harass, threaten, lie and badger debtors?
The government feels the same way. That is why the states have a Statute of Limitations law....if you don't go after your money within the SOL period, you LOSE THAT RIGHT!
So why is this collection agency bothering this person? Because they count on the FACT that most debtors do not understand their rights. Answers like yours does nothing to educate them.
Want to make this CA go away real quick? Follow Sarge's answer. Send them a letter to "cease and desist" and inform them that the debt is beyond the SOL date. If they contact the debtor again, slap them with a $1000 lawsuit. Try to get a judgment? That's fraud and it's another violation.
This is when I wish I were an attorney....so many cases I could help with, but to lazy to go to law school.
- Crazyjester9Lv 61 decade ago
Maddam83 couldn't be more incorrect. If you send them a cease and desist letter they MUST abide by that or they can be sued.
Check the link below to determine what the statue of limitations is for your state. This is how long you have a legal obligation to repay a debt. The 7 year reporting period has already passed so they cannot put this on your credit report.
If the SoL has indeed passed, simply send this collection agency a cease and desist letter stating the debt is passed the SOL and you no longer have a legal obligation to repay. By law they must cease their collection efforts.
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- 6 years ago
When ever a debt collector calls you, you are always within your rights under the Fair Debt Collection Practices Act to tell them never to call you on that number. Tell them it is never convenient for them to call you, and they must obey. Look it up. It's in the law. Lots of people file bankruptcy just to end the phone calls, but this is totally unnecessary. And once seven years have passed from the date of your last payment, it will not be on your credit report.
- 1 decade ago
They cannot add it back on you credit report. Even if they sell and keep selling it to other creditors. However if they wanted to the only thing they might do, is pull your credit report as an inquiry. This will bring down your score. Same thing happened to me its been 8 yrs and their still trying to collect. They pulled my report July 07. (I don't plan on paying them) My credit a very good. Just bought a house in December 07 and a new car this past Friday.
- Anonymous1 decade ago
Depending on where you live, and when the last payment was, odds are the statute of limitations has already run out on this. If that is the case, then they shouldn't even be contacting you. Check the law for your particular state and see what the time frame is for the statue of limitations on credit card debt.Source(s): For more information on credit/debt, check out http://www.contentbullet.com/debtrelief
- 1 decade ago
Legally the debt is still yours and will be forever, they have every right to try and collect it. Telling them not to call you will not stop them because they don't have to. It will not show up on your credit report and will not effect your credit score even if you continue to not pay it. If you want to stop the harassing phone calls you might as well just pay it. But if you can live with it, then keep not paying. If you pay the debt, it will just stop the phone calls.
Worst case- the company can take you to court and get a levy or judgement forcing you to pay. The chance of this happening is slim, almost none of them go to the trouble.
Remember just because its off your credit report, it doesn't mean that you don't owe the money.
- kellyLv 51 decade ago
oh heck no the statue is 7 years and inform this of this and tell them donn=ot call again or you will notifiy the police of haraasment and that you are and will be recording everything.
- Anonymous1 decade ago
I think one should pay their debts, but I don't think it will affect your credit by not paying it, and I don't think they can make you. Ignore them.