I have been dealing with NCO Portfolio. Last Nov, 06 received a notice to respond to arbitration through NAF(National Arbitration Forum). I went and retained a lawyer to handle this case. The lawyer sent in all the necessary papers to the NAF in the specified time. I have not received any response from NAF. In the mean time my Lawyer died March of 07. I received money back for his services. The date is now OCT 28,07. NAF had 6 months to decide the case. It has been 10 months. I thought this nightmare was over. On OCT 26,07 I received in the mail a Letter from an attorney representing NCO. The attorney's letter was not hand signed. Demanding payment or will take necessary legal actions against me. I live in SC, the lawyer is from NC. The SOL has expired. NCO never validated the debt or produced any documents at my lawyer's request. How should I respond to their letter? Or not respond? Can they take me to arbitration again through a different arbitration service and or will they sue me?

First, the SOL probably has no bearing. Legal action was begun via the arbitration process before the SOL expired, so its moot.

Second, have you tried contacting the NAF for the result? Did the NCO attorney's letter say anything about it? I would send a letter back saying this matter was submitted for arbitration. And that you are waiting for the decision of the arbitrator.