[cdboswell]

Hello. My husband and I were recently contacted by a collection agency that said they had purchased an old credit card debt of his from an account that was open in 1996 and has had no payment since 1999. The debt is for $500. I am not sure where to go from here.
1. How do I verify that this is our debt? The collection agency said that the original card issuer will have no record of the account. Is this true?
2. If it is ours, what are the best steps to take? Should I pay it, since it has been so long?
3. Right now, nothing appears on his credit report about this debt. If I do pay something on this debt, will it then be placed on his credit report as something negative?

We are in the process of trying to rebuild the bad credit we built up when we were both in college, and I want to do what is best for our credit score in the long run.
Thanks!

[landlord advocate]

The collection agency is going to have to send you proof of the original debt. If they can't, then they can't collect on it.

[ScottGem]

First, tell the agency, by mail if possible, that you will only deal with them via mail. Second, tell them to provide you with proof of the debt which would include a copy of the original contract or credit app with your signature and an accounting of the debt. Tell them to not contact you, until they can provide that proof.

[cdboswell]

Thanks! That helps a lot. I will do that right away.

[bigcowboy1]

Find out what the statute of limitations is in your state. If it has expired, the cannot collect.

[ballengerb1]

I have heard that some collection agencies buy old debits for as little as 2 cents on the dollar. This gives them a huge incentive to at least try to collect on old debits. If two or three people out of 100 pay up they are money ahead. In most states the statute of limitations will have run out by now.

[Miguel863]

Find out what the statute of limitations is in your state. If it has expired, the cannot collect.

Yes that is correct, I got out of one too. Check your credit report too to make sure it is not there and second check your old credit reports to see the date it was to be removed from your credit report and charged off.

Here is a great website that will give you sample letters to send to collection agencies.

Fair Debt Collection Practices Act - You can Fight Back!

There is a tremendous amount of information there.

When I was sued for a old debt I responded: "The account statue of limitation has expired. In a pass credit report states account expired 7/2003. Charge off date was 8/1997".

They tried to convince me if I was sure I was going to use that defense. I told them I have the proof. I found out it is against the law for them to drag you into court for debt that the statue of limitation has expired. They can be sued for a $1000 if they went before the judge.

A new court date was issued and on the second court date I was given a "stipulation of discontinuance" to sign. Meaning that was it.

Hope that helps.

[ScottGem]

Find out what the statute of limitations is in your state. If it has expired, the cannot collect.

That is only partially true. The statute of limitations deals with using the courts to collect. But the debt NEVER expires. A debt is a promise to pay. They can still dun for the debt, they just can't sue.

Yes that is correct, I got out of one too. .

You didn't "get out of one", you renenged on a debt. Just because the SOL expired doesn't mean you don't still owe the money. Nor does it mean they can't continue to dun you for it.

Even though I have helped several people deal with being sued over debt, I always feel a little bad about it because, in effect, I'm helping people cheat companies out of the money they borrowed from them. I continue to do this because many of the people have hit hard times, usually through no fault of their own and you can't get blood from a turnip. But I really don't like people who use legal loopholes to get out debt they can pay.

[Miguel863]

That is only partially true. The statute of limitations deals with using the courts to collect. But the debt NEVER expires. A debt is a promise to pay. They can still dun for the debt, they just can't sue.



You didn't "get out of one", you renenged on a debt. Just because the SOL expired doesn't mean you don't still owe the money. Nor does it mean they can't continue to dun you for it.

Even though I have helped several people deal with being sued over debt, I always feel a little bad about it because, in effect, I'm helping people cheat companies out of the money they borrowed from them. I continue to do this because many of the people have hit hard times, usually through no fault of their own and you can't get blood from a turnip. But I really don't like people who use legal loopholes to get out debt they can pay.

Thanks for clearing that up. The company I "renenged on" is still going so very strong they grew in size and money. They are a full multi-billion dollar company, going strong for a very long time.

After 10 years... I am still living paycheck to paycheck. With some savings. This was a welcoming relief.

I am sure that company is really hurt about what I did.

Maybe this is not your profession and you should change. This must be hurtful day after day. I am being serious not sarcastic. I too have been in a job like that.

Anyway, thank you for your help even if you are hurt by it. I wish in heart you were on ourside.

[ScottGem]

I never said I was "hurt" by anything nor is this my "profession". What I find interesting in your response is that you first rationalize your reneging on your debt by talking about how little it hurt the company you stiffed. You left the part that you aren't able to afford it (if that is true, you didn't make it clear) as a secondary comment.

Frankly, I would have more respect for you if you said something like;
My paycheck only goes so far, after basic living expenses, I don't have enough to pay this debt. But if things change then I will see if they will accept a settlement. I'm sure my not paying them hurts them less than my paying would hurt me.

But the sense I get from you (and I could be wrong) is that you are proud of the fact that you got out of paying your debt and have no intention of ever paying it now that they can't force you to.

I will continue to help people deal with situations where they are being pursued for debts because most of the time its because their life situations changed after incurring the debt. Most of the people I help seem to want to pay off their debts and just aren't able to. Those people are deserving of help.

[Miguel863]

I never said I was "hurt" by anything nor is this my "profession". What I find interesting in your response is that you first rationalize your reneging on your debt by talking about how little it hurt the company you stiffed. You left the part that you aren't able to afford it (if that is true, you didn't make it clear) as a secondary comment.

I thought I didn't need to. I was just sharing my experience of what I did. The result of my not paying, since you want a deeper insight, is that I was paying for my bill regularly 10 year ago. I was dedicated and proud that I was taking care of my debt until the company decided to raise my interest rate forcing me not to pay. Also giving me a decision of taking the increase in interest rate or closing the account on the rate I was at. The interest rate mind you was increasing by .05% to 1% each year I had the account. I paided religiously unitl they forced me to close the account.

Year after I missed a payment by a day, and they increased the interest rate to 29.9%. As I always paid regularly more then my minimum and I was almost half way from paying the debt forcing me to stop paying. And yes there were other factors at play, like a death and job cuts.

Frankly, I would have more respect for you if you said something like;
My paycheck only goes so far, after basic living expenses, I don't have enough to pay this debt. But if things change then I will see if they will accept a settlement. I'm sure my not paying them hurts them less than my paying would hurt me.

This should have been obvious.

But the sense I get from you (and I could be wrong) is that you are proud of the fact that you got out of paying your debt and have no intention of ever paying it now that they can't force you to.

Yes you are right. My mother died from an aggressive collector who scared her very much. And she too was very didicated to paying her bills.

I delt with many people who wanted so bad to pay their bills and tried their best to rationalize with the company even including making payment plans with them, only to be forced to pay even higher payments squeezing them in to unable to pay.

I will continue to help people deal with situations where they are being pursued for debts because most of the time its because their life situations changed after incurring the debt. Most of the people I help seem to want to pay off their debts and just aren't able to. Those people are deserving of help.

Good for you.

[coram14]

Hello. My husband and I were recently contacted by a collection agency that said they had purchased an old credit card debt of his from an account that was open in 1996 and has had no payment since 1999. The debt is for $500. I am not sure where to go from here.
1. How do I verify that this is our debt? The collection agency said that the original card issuer will have no record of the account. Is this true?
2. If it is ours, what are the best steps to take? Should I pay it, since it has been so long?
3. Right now, nothing appears on his credit report about this debt. If I do pay something on this debt, will it then be placed on his credit report as something negative?

We are in the process of trying to rebuild the bad credit we built up when we were both in college, and I want to do what is best for our credit score in the long run.
Thanks!

If it's not on his credit report, then leave it alone. If you acknowledge that its yours, it will impact negatively on his score for 7 more years. If you want to accept it, then pay it. It will show as "collections, paid". It won't hurt it too bad.