topic Re: Debt and Collections; question...... in Community Chat

Debt and Collections; question......

SahmIam — Fri, 14 Oct 2016 17:39:12 GMT

You receive a phone call that is serious: there is a case and your SS# on a persons' desk and YOU must call else legal action. You are clueless what it is about. It happens again. They call a phone number that is unlisted; NOW you are really wondering what is going on.

You call and find out that there is a debt with your name on it from 11 years ago; why there is a debt doesn't matter, there just is. You can not or are not willing to pay the debt for whatever reason (again, that isn't the issue). Both parties hang up.

HERE is the question: by calling, does this mean you have opened the door for 14 years of calls, letters and legal action?

I say no as I read it's the PAYMENT that makes the clock tick. Family member says YES, by calling you have acknowledged the debt and now they can come after you no matter how long ago it was. Person this happened to is freaking out as she is on a fixed income and barely making it (she may be homeless in a month if housing doesn't come through).

Before I start googling (because I want to know the answer), I thought I would ask the great minds of this community: you all have supplied me with amazing information on many subjects so...

Anyone know? TIA

Re: Debt and Collections; question......

Laura14 — Fri, 14 Oct 2016 17:43:35 GMT

I am not an expert so please google but I believe unless you actually make a payment on the debt, they got nothing.

And check the statute. Debts expire after a while and 11 years is a long time. It may not be valid any longer.

Re: Debt and Collections; question......

cherry — Fri, 14 Oct 2016 17:48:13 GMT

It sounds like you need expert legal advice. I'd contact an attorney Legal aid might be able to help

Re: Debt and Collections; question......

Laura14 — Fri, 14 Oct 2016 17:48:16 GMT

I checked the statutes at bankrate.com and unless she is in Kentucky which has 15 years for some types of debts, they can't touch her.

In the words of BIll Handel, tell them to go pound sand. They can sue her and the judge will throw them right out of court because it's too late for them to collect on it.

Re: Debt and Collections; question......

SahmIam — Fri, 14 Oct 2016 17:50:11 GMT

@Laura14 That is what I thought. She found an article at the senior center that discussed debt collectors going after seniors' pensions and SS because they can find that they are receiving those things and she is now terrified.

Getting any assistance (legal-wise) will take forever so we're trying to do the legwork for her. I'm upset over seeing how sick with worry she is. : (

Editing to add:

*Why come after someone at this point?

*If she had agreed to make payments, is THAT what would have been the problem/renewed the debt?

Re: Debt and Collections; question......

Laura14 — Fri, 14 Oct 2016 17:51:09 GMT

@SahmIam It's a scare tactic. I would have someone with a big mouth call those (insert lots of good names for them here) and tell them that if they so much as contact her again, they will be sued for harassment and a complaint will be filed with every agency you can find about their illegal activity.

What they are doing is completely illegal. File the complaints ASAP. Go get em!

Re: Debt and Collections; question......

Laura14 — Fri, 14 Oct 2016 17:55:41 GMT

@SahmIam wrote:
@Laura14 That is what I thought. She found an article at the senior center that discussed debt collectors going after seniors' pensions and SS because they can find that they are receiving those things and she is now terrified.

Getting any assistance (legal-wise) will take forever so we're trying to do the legwork for her. I'm upset over seeing how sick with worry she is. : (

Editing to add:

*Why come after someone at this point?

*If she had agreed to make payments, is THAT what would have been the problem/renewed the debt?

@SahmIam Do NOT pay them. If she makes any payment of any kind, it reaffirms the debt and starts the clock over so they can collect on it and take their share which is what they are trying to get her to do. The debt is too old. They are banking that she doesn't know that. Tell them to go take a flying leap or the next people they talk to will be the police.

Re: Debt and Collections; question......

Tuppermore — Fri, 14 Oct 2016 17:58:07 GMT

There are many telephone scams out there these days. I always look the phone number up through an internet search if I receive phone calls similar to this. I know that I do not have any outstanding taxes or bills. So far, every phone number that I have searched has shown up as a scam. Please be careful. These calls are often just searching for information that can then be used to extract money from various accounts. Fraud has become much too easy. I have eliminated all charge cards accept Kohl's and my Q card. In the last 14 months, I have had both of our AMEX accounts hacked as well as 3 debit cards and a Visa charge card. All of my plastic cards are in RFID sleeves in my purse. I always try to be careful. It is very frustrating. I hope this is legitimate.

Re: Debt and Collections; question......

nycgrl — Fri, 14 Oct 2016 17:58:34 GMT

There is too much in this question to give you an absolute answer but the bottom line is old debts that may or may not be collectible are sold off to bottom feeders. Each state has its own statute of limitations. There are also federal laws in place that bar the collection agencies from harrassment. Please check the statute of limitations in her state and determine if the debt is first collectible. If it is not, she can write a cease and desist letter and if they break the "no communication" she is entitled to collect $$$ per the FCCPA.

Never make a payment - that validates the debt - they use scare tactics and people cave.

Like I said there is a lot involved when it comes to collection agencies, their practices and the LAW.

Re: Debt and Collections; question......

SahmIam — Fri, 14 Oct 2016 18:00:03 GMT

@Laura14 I went to the site you mentioned; it took awhile but after they told her what the debt was (because she was clueless), she acknowledged that there was a debt but they wouldn't agree to a settlement or payment plan. Things in her life have gone down from there and there is no money; nothing has changed.

THIS is what may ***** her over : (

Re: Debt and Collections; question......

Laura14 — Fri, 14 Oct 2016 18:03:00 GMT

@SahmIam wrote:
@Laura14 I went to the site you mentioned; it took awhile but after they told her what the debt was (because she was clueless), she acknowledged that there was a debt but they wouldn't agree to a settlement or payment plan. Things in her life have gone down from there and there is no money; nothing has changed.

THIS is may what ***** her over : (

@SahmIam Doesn't matter if it was legitimate. It's not anymore. The debt expired. Stop talking to them and have her enjoy her life. She's debt free under the law.

And BTW, no reputable agency would not do a payment plan or consider a settlement. We do it all the time at my place of business. If someone is in colllections, most of the time they have no money and need to make payments. Ridiculous.

Re: Debt and Collections; question......

chickenbutt — Fri, 14 Oct 2016 18:02:59 GMT

If there is actually a debt that can be attributed to you and you initiate contact with them, that does lengthen the amount of time which they can continue to attempt collection.

Re: Debt and Collections; question......

nycgrl — Fri, 14 Oct 2016 18:04:42 GMT

Time-Barred Debts

If you have old debts, collectors may not be able to sue you to collect on them. That's because debt collectors have a limited number of years — known as the statute of limitations — to sue you to collect. After that, your unpaid debts are considered "time-barred." According to the law, a debt collector cannot sue you for not paying a debt that's time-barred.

This gets tricky for consumers because the statute of limitations varies from state to state and for different kinds of debts. It is also tricky because, under certain circumstances, the clock can be reset, and the time period can be started fresh. That's why the Federal Trade Commission (FTC), the nation's consumer protection agency, says it's important to understand your rights if a debt collector contacts you about an old debt.

Under the federal Fair Debt Collection Practices Act (FDCPA), a debt collector is someone who regularly collects debts owed to others. This includes collection agencies, lawyers who collect debts on a regular basis, and companies that buy unpaid debts and then try to collect them. The term 'debt collector' doesn't include original creditors who collect their own debts.

When is an old debt too old for a collector to sue?

Typically, state law determines how long the statute of limitations lasts. Usually, the clock starts ticking when you fail to make a payment; when it stops depends on two things: the type of debt and the law that applies either in the state where you live or the state specified in your credit contract. For example, the statute of limitations for credit card debt in a few states may be as long as 10 years, but most states impose a period of three to six years. To determine the statute of limitations on different kinds of debts under each state's law, check with a legal aid lawyer, another attorney, or your State Attorney General's Office.

The statute of limitations for a debt is usually different from the reporting period for a debt on your credit report. In general, negative information stays on your credit report for seven years.

What should I do if a debt collector calls about a time-barred debt?

Collectors are allowed to contact you about time-barred debts. They might tell you that the debt is time-barred and that they can't sue you if you don't pay.

If a collector doesn't tell you that a particular debt is time-barred — but you think that it might be — ask the collector if the debt is beyond the statute of limitations. If the collector answers your question, the law requires that his answer be truthful. Some collectors may decline to answer, however. Another question to ask a collector if you think that a debt might be time-barred is what their records show as the date of your last payment. This is important because it helps determine when the statute of limitations clock starts ticking. If a collector doesn't give you this information, send him a letter within 30 days of receiving a written notice of the debt. Explain that you are 'disputing' the debt and that you want to 'verify' it. The more information you give the collector about why you are disputing the debt, the better. Collectors must stop trying to collect until they give you verification. Keep a copy of your letter and the verification you receive.

Must I pay a debt that's considered time-barred?

The decision to pay a time-barred debt is up to you. You have options, but each one has consequences. Consider talking to a lawyer before you choose an option.

Pay nothing on the debt. Although the collector may not sue you to collect the debt, you still owe it. The collector can continue to contact you to try to collect, unless you send a letter to the collector demanding that communication stop. Not paying a debt may make it harder, or more expensive, to get credit, insurance, or other services because not paying may lower your credit rating.
Make a partial payment on the debt. In some states, if you pay any amount on a time-barred debt or even promise to pay, the debt is 'revived.' This means the clock resets and a new statute of limitations period begins. It also often means the collector can sue you to collect the full amount of the debt, which may include additional interest and fees.
Pay off the debt. Even though the collector may not be able to sue you, you may decide to pay off the debt. Some collectors may be willing to accept less than the amount you owe to settle the debt, either in one large payment or a series of small ones. Make sure you get a signed form or letter from the collector before you make any payment. This document should state that the entire debt is being settled and that the amount to be paid will release you from any further obligation. Without this document, the amount paid may be treated as a partial payment on the debt, instead of a complete payment. Keep a record of the payments you make to pay off the debt.

What should I do if I'm sued for a time-barred debt?

Defend yourself in court. If you're sued to collect on a time-barred debt, pay attention, and respond. Consider talking to an attorney. You or your attorney should tell the judge that the debt is time-barred and, as proof, provide a copy of the verification from the collector or any information you have that shows the date of your last payment. The lawsuit will be dismissed if the judge decides the debt is time-barred. In any case, don't ignore the lawsuit. If you do, the collector likely will get a court judgment against you, and possibly take money from your paycheck, bank account, or tax refund.

Assert your FDCPA rights. It's against the law for a collector to sue you or threaten to sue you on a time-barred debt. If you think a collector has broken the law, file a complaint with the FTC and your state Attorney General, and consider talking to an attorney about bringing your own private action against the collector for violating the FDCPA.

Re: Debt and Collections; question......

ChynnaBlue — Fri, 14 Oct 2016 18:06:40 GMT

@Laura14 wrote:
I am not an expert so please google but I believe unless you actually make a payment on the debt, they got nothing.

And check the statute. Debts expire after a while and 11 years is a long time. It may not be valid any longer.

Yes, the laws vary by state, so you need to look into laws in your own state.

Re: Debt and Collections; question......

Laura14 — Fri, 14 Oct 2016 18:06:48 GMT

@chickenbutt wrote:
If there is actually a debt that can be attributed to you and you initiate contact with them, that does lengthen the amount of time which they can continue to attempt collection.

@chickenbutt She didn't initiate contact based on what I read. I believe it reaffirms only if you agree to make a payment.

@SahmIam Here is a pretty recent article about debt law. I hope it helps. Like I said, just hang up on them. They are fishing.

https://www.thebalance.com/statute-of-limitations-on-debt-960565

Re: Debt and Collections; question......

Tinkrbl44 — Fri, 14 Oct 2016 18:06:54 GMT

@SahmIam

There are collection companies that "purchase" uncollectible debt from banks and finance companies for pennies on the dollar and then "work" these debt leads for all they're worth, trying to get some cash out of them. The debt could be several years old.

The original holder of the debt has written off the uncollectible debt, and the purchaser has aggressive callers that will pursue the person who never paid their debt. I'm not sure, but I guess it must be lucrative for these collection companies, or they wouldn't exist.

Re: Debt and Collections; question......

chickenbutt — Fri, 14 Oct 2016 18:08:20 GMT

In the OP, the question that was posed said that if you call them, does that open up the door. The answer is that, yes, it does. It doesn't matter what was said. It matters that a connection was made.

Re: Debt and Collections; question......

SahmIam — Fri, 14 Oct 2016 18:11:40 GMT

@Laura14 She returned THEIR call because she didn't know what this was about. Hearing that there is a "case with your name and your SS# on it" is scary. They also called her brother (who has dementia) and left a message; his nurse called her to tell her this.

By acknowledging the debt, there is a 3 year shelf life UNLESS a suit is file and then you have to appear in court and tell the judge that the Statute of Limitations has passed. If you don't, the court can rule you to pay the debt no matter how old it is.

Freaking hell. This is HORRIBLE. : (

Re: Debt and Collections; question......

Laura14 — Fri, 14 Oct 2016 18:12:01 GMT

@chickenbutt wrote:
In the OP, the question that was posed said that if you call them, does that open up the door. The answer is that, yes, it does. It doesn't matter what was said. It matters that a connection was made.

@chickenbutt But she was responding to an initial contact by them. She didn't call them out of the blue. They did. And if contact was all you needed, if that were true, they could hold you to the debt if you answered the phone the first time they called you not even knowing who they were.

Re: Debt and Collections; question......

muttmom — Fri, 14 Oct 2016 19:40:42 GMT

If this person acknowledged she or he owed the money, why wouldn't she or he make arrangements to pay it?