Ask Me Help Desk

I have a debt that is 9 years old that just popped up the original company wrote it off they said the company collecting bought the debt. This is the first that I have seen on this debt in 9 years. Do I have to pay this debt to the company that bought this since the statues of limitations are up?:confused:

The SOL might be up.

Depends on where you live.

Quote:

Originally Posted by thpier

do i have to pay this debt to the company that bought this since the statues of limitations are up?:confused:

Hello th:

I don't know. Debts don't expire. Debts don't depreciate like old cars. They don't disappear. If you owed it then, you owe it now. Did you promise to pay? How much is your word worth? How much respect do you have for yourself? Does it bother you when you shave in the morning, to see a crook staring back at you?

Crook?? You don't like that term, do you? Well, what would you call yourself? A liar - a cheater?? Nope, those terms don't sound too good either. If somebody owed you money and told you to screw yourself, what would you call him?

Dude. You owe the money. Pay it. The statute of limitations only limits the time they can sue you. Ok, maybe they can't sue you, but they can hassle you about it forever.

excon

I won't be quite as rough on you as excon, but I agree completely with the point he makes. You said "I have a debt". The dictionary defines a debt as something owed. If you have a debt its because you made a promise to repay that debt when you incurred it.

Now I understand that circumstances may have prevented you from paying the debt when it was first due. But it sounds like your circumstances are changed now. If you are an honest, ethical person, then you should honor your promise and repay the debt.

Hello again, th:

Ok, the moralizing is done. Yes, you owe the money - all of it - plus interest. But, you owe it to the original holders of the note - not these scumbags. The original holders wrote it off, and sold it to a collection agency. The sleaze balls who bought your note, probably didn't pay more $.50 on the dollar. Because it's been so long, and because you probably ARE beyond the statute of limitations, the blood suckers probably paid no more $.10 on the dollar.

Please, don't pay these scum suckers ALL of it. I would bet that you could negotiate a settlement, including the removal of ALL negative entries on your credit reports, for $.20 on the dollar -maybe less.

Now, if you want to live up to your promise, send the rest to the original note holder.

I know, I know - that's pretty strange. Nobody does that. I did. But, I'm pretty strange.

excon

Oregon Statutes of Limitation

Unlawful trade practices: 1 year, (ORS 646.638(5).

NOTE: There is no statute of limitations for a cause of action brought as a counterclaim to an action by the seller. (ORS 646.638(6)).

Contract or liability: 6 years, (ORS 12.080)
Judgment: 10 years, (ORS 12.070).

I must disagree with excon here. If the debt has been sold, then its owed to the owner of the debt, NOT the original creditor. Once its sold, even if you pay it back to the original creditor they are bound to turn over the money to the owner of the debt. This assumes that the debt was sold, which is likely the case here.

However, if the debt was just turned over to a collection agency who gets a percentage of what they collect, then, by all means, pay the original creditor.

And yes you should attempt to work out a settlement. The original creditor has written it off so they already got a tax break. The successor creditor paid a lower amount for the debt so their liability is not the full amount.

Statute Of Limitations Debts

Statute of Limitations-Credit card debt
A statute of limitations debts is a law that sets a certain period after certain events have taken place, when legal proceedings for recovery of the debt cannot be started.

For example, a state might have a statute limiting prosecution for written contracts to three years. It means that if a person is sued for recovery of the amount after 3 years then he cannot be proceeded against in a court of law.

One reason for statute of limitations debts is fairness. The law recognizes that at some point of time old records may be erased or become inaccessible and memories can become vague. In such cases it's best to press forward than to be burdened by old cases. The statue of limitations is accepted all over the world. There are 4 types of contracts. They are
Oral Contracts, Written Contracts, Promissory Notes and Open-ended Accounts. These are revolving lines of credit with varying balances. The best example is a credit card account. A credit card is ALWAYS an open account. This is established under the Truth-in-Lending Act, Fair Credit Billing Act, and 15 USC sec. 1601

The statute of limitations debts defines an open ended contract In simple language it means the term open end is a
Plan under which the creditor carries out repeated transactions over a period. In such cases the lender prescribes the terms of such transactions, and also provides for a finance charge, which will be calculated from time to time on the unpaid amount outstanding. A credit card debt is thus an open-end credit plan as derived from the act. With nearly one and a half billion credit cards in circulation in the United States the relevance of the statute of limitations for credit cards assumes greater importance.

The statute of limitations for credit card debt is a powerful weapon for a consumer. In case you are burdened by old card debts, and the statute of limitations has run out then creditors cannot take you to court. The Statute of Limitations comes into action from the day the debt - or payment on your credit card was due. Thus the first time you stopped paying your credit card bill is the date the statute of limitations starts.

A debt is an absolute promise to pay. Yet if the Statute of Limitations has expired and the creditor tries to force you to pay the debt, you have the right not to honor the promise.

Another point for credit card debts is the jurisdiction where the creditor can sue to recover the debt. Normally it's the place where the consumer signed the credit card loan application or the place where the consumer currently resides. The place of location of the bank is not of material importance. If those states are different, the creditor has the choice of where to sue and can select the state with the longer SOL. Each state has a statute of limitations on old credit card debts. The statute of limitations refers to the period after which, creditors cannot sue you to collect the debt. The length of time is calculated from your last payment date or last activity date. This is when you last used the card. The statute of limitations for credit card debt varies from state to state. The period may vary from 3 to 8 years. For example in Kansas it is 3 years and in Wyoming it is as long as 8 years.
However there is no statute of limitations debts on certain types of debt like Federal Student Loans, Fines, Child support and Government taxes.
The statute of limitations is a powerful tool for consumers. The SOL can stop lawsuits and collectors. If a debt is legally expired, you can escape being sued or having to pay an old debt. But it must be understood that the statute of limitations does not wash away your credit card debt. The issuer can still take recourse to other methods to recover the debt. Only he cannot sue in court.

While the statute of limitations (Sol) is running or even after it's expired, making any payment on your credit card account can restart the statute of limitations. So you must ensure the debt is valid, and then check your state laws to see if the debt has a statute of limitations. Taking any action like making a payment or signing an agreement to clear the debt would be suicidal.

When the statute of limitations has expired, and you cannot pay the debt, then it would be in your interest to send a letter to the collectors and inform them of your financial situation and that you are aware of the expired SOL and will use it as a defense if taken to court. Unless you inform the person trying to collect the debt that the statute of limitations has expired, or bring it up during a court appearance, the collector stands a good chance of winning a judgment against you.

If you find yourself in a situation where you are contacted by a collector then follow a few tips.
Firstly do not send any payment whatsoever, if the statute of limitations is past in your state. Doing so, will make your debt come alive. It will also give the debt collectors the idea that you are an easy target and they may put further pressure on you.

Secondly keep track of your credit report to make sure that no negative information about you is reported. Your old debt account should not be reflected on your credit report since the statute of limitations is past. If you find that they are reporting the information, take corrective action immediately. Lastly eschew all contact with the debt collection agency. Do not accept their phone calls. If they send you notice in the mail, do keep it as proof of their harassment

Lastly we must remember that credit card debt is an open-ended debt and the statute of limitations applies to it. So in case you have piled up credit card debt and the statute of limitations in your state has run out then you are home and dry.

PS, they must possess the original contract to collect, not a copy.

Yes your answer helped out a lot . I guess I still owe the debt. I did try to call the original company about the debt they did say they wrote off the debt years ago and this other company bought it so they are the ones I have to pay. Thanks everyone for your help.

A debt is an absolute promise to pay. Yet if the Statute of Limitations has expired and the creditor tries to force you to pay the debt, you have the right not to honor the promise.