I just received a phone call from a collection agency for a credit card from Sears that is 10 years ago owing.
They called me at work and said they can garnish my wages! Is this true!
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I just received a phone call from a collection agency for a credit card from Sears that is 10 years ago owing.
They called me at work and said they can garnish my wages! Is this true!
The short answer is no. But there are some exceptions. Most debts exhaust themselves after 7 years, unless there has been some kind of account activity, which can reset the collection clock. Such as you making a payment to them or to a collection agency representing them. If that hasn't occurred and this debt has truly been asleep for over 7 years, tell them to stuff it!
Wow, it just seemed like a real blast from the past.. I guess what the saying you past will catch up to you is true I guess I am to be thankful it has been 10 years thanks for the quick response!!
This happens a lot - some old debt that has been long ago resolved or written off gets sold for like $.03 per dollar to a collection agency. The agency then contacts you, sometimes posing as a law firm or other official agency and then use big words and threats of judgements, law suits and wage garnishment. They do this hoping you settle with them. If you figure, they buy a $5000 'debt' for $100 all they have to do is convince you to settle for $1000 and they just made a huge profit.
Also... get ready for it because you WILL see this 'debt' again. When you don't pay them they will sell it to another agency.
I have an old debt from a health club that I joined in 1991. I paid it off in 1996 after it had transferred to collections. Now, every year or so I get a letter from another collection agency trying to get me to pay them the original $800 and thousands in interest. They, of course, are willing to settle for $1000 if paid in full within 30 days.
While not technically a scam or illegal, the collection has no legal recourse against you if you ignore them. Tell them to take you to court. You'll be happy to discuss it there!
One more thought... Make sure that this debt is no showing as a negative account on your credit report under the original creditor's name or under a collection agency. It is very possible that it is still listed on your report as a charge-off. If it is, you will have to notify Experian or whoever's report it is and give them the necessary information to remove it.
Get your 3 credit report 100% free @ annualcreditreport.com and print it out. Anything older than 7 years (depending the state you're in) can be disputed with the 3 credit bureau and u can file a complaint with ftc letting them know that this company is harassing u about a debt that is passed the SOL. Or simply call sears tell them that u received a letter regarding acct# blah blah & u want to clear it up, ask them if they have a collection company under blah blah name. If not ask them to do a three way call to the collectionn agency that is claim Sears as being part of their company.. I'm sure u would get a letter letting u know u don't owe the collection agency a dime.
This is incorrect advice - the Statue runs from the date of the last activity on the account (payment, charge, payment to a collection agency) so without more info it is impossible to know if this is out of Statute. It also very well may have been sold and the company that purchased it will almost never, ever give up.
An attempt to collect does not become something the FTC will handle until and unless you have advised the "collector" not to contact you by phone. You cannot stop letters.
Sears has already turned the debt over and has no interest in speaking to the debtor. In fact, it is entirely possible that Sears no longer has the file. Sears also is not going to take part in a three way conversation - that I can guarantee, nor will Sears or anyone else send a letter stating the OP doesn't owe anyone anything.
Anyone can dispute an incorrect item on his/her credit report at any time.
Quote:
Originally Posted by Redz
If they get a Judgment, yes, they can file a garnishment order against your wages IF they can get a Judgment.
Has there been activity on the account in the past 10 years?
No there hasn't been any activity in 10 years!
I haven't received any letters or calls in about 7 years!
I also live in Ontario in case that helps with any answers
Quote:
Originally Posted by Redz
I answered specifically for the US - the time frame is different in Canada but the basic concept is the same.
And of course bill collects lie, I know it is hard to believe. But first, you will always owe the debt, and they can call and write you forever if you don't pay. But there is a SOL depending on where you are at, and what type of debt it is.
Living in Ontario actually helps you, as the statute of limitations there is 6 years. Remember the SOL can be reset if you make any payment on the account at all. Although the statute of limitations has expired, they can still attempt to collect the expired debt, report it to credit reporting agencies and even take you to court to try and enforce it via a judgement which could still result in a wage garnishment. You do have the law on your side though; If they did bring you to court to obtain a judgement, you can raise the "Expired Statute of Limitations" defense and the case is generally dismissed on the spot. So as you can see, you still need to be diligent with this or the creditor could still make your life miserable. Credit reporting agencies do recognize the expired statute of limitations defense as grounds for removal from your credit report, so my advice is to still check your credit reports and request removal based on that. By the way, Sears has no interest in this debt, since they probably sold it long ago!
Holy smokes these people are so rude and just called me 10 times in a row making my job almost immpossible I told them take me to court they wanted to talk to the HR department. We are a non prfit business and payroll knows my situation! So I guess all I can do is suck it up! How do I check out this credit report?
Quote:
Originally Posted by Redz
Did you tell them not to call any more?
Yes I also had my assistant tell them on the 6th call we would call the police for harassment the calls have now stopped and I got a number to the Credit report so will contact them in the new year!
What state do you live in? You stated this went to bad debt 10 years ago? When was your last payment? SOL in most states starts with that date. Credit Reporting would be 7 years + 180 days from the date of first default.Quote:
Originally Posted by Redz
Quote:
Originally Posted by NASCAR_Devil
"I also live in Ontario incase that helps with any answers"
Funny thing, I posted a question about a judgement. They put a judgement on my account that is 10 years old from Sears also.
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