My husband has just been served with a "Petition for Breach of Contract". Credigy Receivables Inc. is the petitioner. My husband doesn't recall a lot about this debt as it is at least 10 years old. This is an old Discover card that my husband used and paid on, but then it was used by a family member without permission. The amount used without permission was about $1500 to $2000. As best as he recalls he reported this and the account was closed. He doesn't recall whether he still had a balance prior to the misuse. This debt does not appear on his credit report and his name is spelled incorrectly on all correspondence. We have received numerous letters over the past couple years from Credigy Receivables, Stewart and Assoc. and a local law firm trying to collect the debt, but we figured it was bogus and just ignored them. Now of course we are wishing we hadn't. Can I still send a validation of debt demand letter? From what I can tell from Missouri's statute of limitations this should have already expired. We are willing to pay the debt if it is in fact valid, but we definitely don't want a judgement against my husband. What should I do? Help please!

Does this document request a reply from you, or does it indicate a court date?

If just a reply, send a letter, deny knowledge of the debt, and request validation of the debt.

Send the letter via certified mail, return receipt requested, and keep a copy. This way you can prove you responded in time, and that you requested validation.

If it is a hearing date, you need to show up and defend yourself, and if you believe that the statute is up, that would be your defense, in addition to claiming no knowledge of the debt.

You should calculate the statute based on the last payment made, or the last charge placed on the account.

Ok, The fact that the card was used by a family member without permission doesn't really apply here. If you are forced to pay then you can sue the family member.

There are three questions that need to be answered here:

1) is this debt valid, meaning is it a contract your husband agreed to
2) does the petitioner have the right to collect this debt
3) has the Statute of Limitations expired on suing for collection of this debt

Now I've never heard of a "Petition for Breach of Contract". So I have to wonder if this is a legal document or not. What exactly does it say. Does it indicate that this petition was filed in a court? Does it give you instructions on how to respond to it?

Once we know the answers to these questions, we can advise on how to proceed.

ScottGem,

I am assuming he signed a contract when he applied for and was issued the credit card. This is a summons to appear in court on a specific court date and a copy of the "cardholder agreement" is attached, however it is generic and doesn't contain my husband's signature. The petition states where my husband resides, that monies were advanced to him to purchase goods, services, etc. that the charges are fair and reasonable, that demand for payment has been made and refused.

I am assuming that Credigy receivables purchased this debt from Discover or another debt collection agency. Are they required to prove that they have the right to collect this debt? If so, can I request that they prove this or is it too late once a suit has been filed?

From what I understand the statute of limitations in Missouri is 10 years. It has been at least ten years since anything was charged or paid on this debt. We have purchased a home and vehicles during this time and this has never showed up. I am wondering if I could file a petition to dismiss because of this.

Thank you so much for your help.

YOU can't do anything. But your husband can show up at the assigned court date. Make sure that he doesn't have to confirm to the court that he will be attending.

Send a letter to the plaintiff asking for verification of the debt, which would include a signed copy of the contract, a history of the account and proof that they either purchased the debt or have been assigned to collect it. Send a copy to the court.

At the hearing, they must produce the proof oryour husband asks for a dismisall.

The statute of limitations in your state for open accounts (Credit cards) is 5 years, they are trying to make a written contract out of a credit card application to streech the SOL to 10 years, the judge won't buy it if you argue it, send them a request for validation asking for the Written contract they are suing you about, the last statements, proof of purchase and credit card agreement. File your response with the court and At the same time you can file a contra-suit for violations of the FDCPA, the part talking about missrepresentig the charater of a debt.