Collection agency garbage

Jersey Girl

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Err. I got one of those debt collection letters in the mail today and want your thoughts on how (or if) to respond. Here are the facts:

1. Agency is legit, though rated very poorly online.
2. I know an account with the original creditor, my bank, was paid off over 10 years ago.
3. The agency is not representing the original creditor.
4. No original account number is listed on the letter, so I can't be sure what account they are talking about (though I am pretty sure I know)
5. This is the first and only contact I have received about this paid-off account since, well, I paid it off.
6. The letter specifically states that the debt is too old for me to be sued in court unless I sign a paper saying the debt is valid (which it isn't).
7. This obviously is not showing up on my credit report since it is 10 years old.
8. I am sure I have paperwork stating that the debt has been resolved.

So, thoughts? My initial inclination is to just ignore it or to call the bank to see if they have any outstanding records (which I know they don't).
 

dscher

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Imo..#6 tells the story. They are more than likely fishing with fear. Once again...just my two cents. Good luck.
 

BigRedRage

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Err. I got one of those debt collection letters in the mail today and want your thoughts on how (or if) to respond. Here are the facts:

1. Agency is legit, though rated very poorly online.
2. I know an account with the original creditor, my bank, was paid off over 10 years ago.
3. The agency is not representing the original creditor.
4. No original account number is listed on the letter, so I can't be sure what account they are talking about (though I am pretty sure I know)
5. This is the first and only contact I have received about this paid-off account since, well, I paid it off.
6. The letter specifically states that the debt is too old for me to be sued in court unless I sign a paper saying the debt is valid (which it isn't).
7. This obviously is not showing up on my credit report since it is 10 years old.
8. I am sure I have paperwork stating that the debt has been resolved.

So, thoughts? My initial inclination is to just ignore it or to call the bank to see if they have any outstanding records (which I know they don't).
If it is not reporting to your credit, I would ignore it. If it reports to your credit, then you would just dispute it. IMO. Without it being on your credit, it is irrelevant.
 

Absolute Zero

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Err. I got one of those debt collection letters in the mail today and want your thoughts on how (or if) to respond. Here are the facts:

1. Agency is legit, though rated very poorly online.
2. I know an account with the original creditor, my bank, was paid off over 10 years ago.
3. The agency is not representing the original creditor.
4. No original account number is listed on the letter, so I can't be sure what account they are talking about (though I am pretty sure I know)
5. This is the first and only contact I have received about this paid-off account since, well, I paid it off.
6. The letter specifically states that the debt is too old for me to be sued in court unless I sign a paper saying the debt is valid (which it isn't).
7. This obviously is not showing up on my credit report since it is 10 years old.
8. I am sure I have paperwork stating that the debt has been resolved.

So, thoughts? My initial inclination is to just ignore it or to call the bank to see if they have any outstanding records (which I know they don't).

I go after debt collectors and debt buyers for a living. Here's what i think.

1. You have a potential FDCPA claim against the collection agency. That claim has a short 1 year statute of limitations. You can leverage that to make sure this debt goes away for good and is not damaging your credit.

2. Keep a copy of the notice and any other notices.

3. Get a free online credit report to see how the debt is being reported and whether the collction agency is reporting it.

4. Send them a brief letter disputing the debt within 30 days of receipt of their notice. Request that they provide you with any documentation they supporting their view that you owe the debt.

5. If you are not satisied with their response or want to pursue an FDCPA claim, or a FCRA claim on the credit reporting, contact a consumer protection attorney in your area for assistance. Most will take it on contingency and will seek to get paid from the other side.

6. If your credit report is inaccurate, you can file a dispute online directly with the credit reporting agency, ie Transunion, Equifax, Experian.

7. Don't pay them a dime. That may revive the statute of limitations and allow them to sue you on the debt. Thats what they are hoping for, which is deceptive in my book.
 
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Absolute Zero

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Here's some more info on the deceptive collection of out of statute debt.

Here's a bit on the "Zombie Debt" scam

https://www.washingtonpost.com/busi...ors-trick-consumers-into-reviving-dead-debts/

More here:

Americans are more than $4 trillion in debt, and debt collectors can resurrect “tens of billions of dollars” each year by getting you to reset the statute of limitations on your debt, the Washington Post, reported.

It’s called zombie debt because it’s old. All consumer debts, from credit card balances to medical bills, have limits on the number of years creditors have a legal right to sue you for payment, according to NerdWallet.

In some states, the statute of limitations for credit card debt is three years. In others, it’s up to 10 years. The rules can vary from state to state. In 22 states, for example, the statute of limitations on private student loans is six years.

But there’s a catch. If the consumer makes a payment, even against his or her own will, that can be used to try to revive the life of the debt.

https://moguldom.com/219053/zombie-...reviving-debts-that-couldve-been-written-off/

Here is some generic information from the FTC. General because the deceptive nature of this depends on what kind of ******** the debt collector puts in their letters, and the law of each state which determines their ability to collect:

What if my debt is old?
Debt collectors have a certain number of years they can sue you and win to collect a debt. It’s called the statute of limitations, and usually begins when you fail to make a payment on a debt. Once it’s over, your unpaid debt is considered “time-barred,” but in some states, you have to raise the age of the debt as a defense to win.

How long the statute of limitations on a debt lasts depends on what kind of debt it is, and the law in your state or the state specified in your credit contract.

Also, under the laws of some states, if you make a payment or provide written acknowledgment of your debt, the clock may start ticking again.

Can a debt collector contact me about a time-barred debt?
Yes. Even if a debt collector can’t successfully sue you over a time-barred debt, you may still owe it.

What if I’m not sure whether my debt is time-barred?
Ask the collector when its records show you made your last payment. You also can send the collector a letter within 30 days of receiving a written notice of the debt. Explain why you’re disputing the debt and that you want to verify it. A collector must stop trying to collect until it gives you verification.

Does a time-barred debt stay on my credit report?
Maybe. The statute of limitations for a debt is usually different from the reporting period for a debt on your credit report. In general, negative information stays on your credit report for seven years.

Do I have to pay a debt that’s considered time-barred?
It’s up to you. Consider talking to an attorney before you decide. You can:

  • Pay nothing. The collector can’t sue you, but can continue to contact you unless you send a letter by mail asking for contact to stop.
  • Make a partial payment. In some states, if you pay any amount on a time-barred debt or even promise to pay, the debt is “revived,” and the statute of limitations resets. The collector might be able to sue you to collect the full amount of the debt, which may include extra interest and fees.
  • Pay off the debt. Some collectors will accept less than what you owe to settle a debt. Before you make any payment to settle a debt, get a signed form or letter from the collector that says the amount you’re paying settles the entire debt and releases you from any further obligation. Also keep a record of the payments you make to pay off the debt.
What should I do if I’m sued for a time-barred debt?
You still need to respond. Consider talking to an attorney. If you ignore a lawsuit, the collector could get a court judgment and garnishment against you. Tell the judge the debt is time-barred, and show a copy of the verification notice from the collector or any information that shows the date of your last payment.

https://www.consumer.ftc.gov/articles/debt-collection-faqs
 

dreamcastrocks

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If it is not reporting to your credit, I would ignore it. If it reports to your credit, then you would just dispute it. IMO. Without it being on your credit, it is irrelevant.

We have something on our credit, that even though we paid it off and have proof of doing so, the collection agency still says we owe them.

I disputed the claim with the credit bureaus, with proof of payment, prior to the debt even going to collection agency. Somehow the bureaus still say that is valid with is BS.

My credit score is still 828 even with this on it (come to think of it, it may be only in Linda's name) and hers is right about the same.

Keep fighting the good fight.
 

BigRedRage

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We have something on our credit, that even though we paid it off and have proof of doing so, the collection agency still says we owe them.

I disputed the claim with the credit bureaus, with proof of payment, prior to the debt even going to collection agency. Somehow the bureaus still say that is valid with is BS.

My credit score is still 828 even with this on it (come to think of it, it may be only in Linda's name) and hers is right about the same.

Keep fighting the good fight.


I hear about this often. I am in the industry of paying off debt and cannot help the consumers that bring this to me but other agencies can. Honestly, those agencies do what you did and once you get the point of disputing and the creditor points at experian and experian points at the creditor, I dont know what else can even be done. its BS.
 
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We have something on our credit, that even though we paid it off and have proof of doing so, the collection agency still says we owe them.

I disputed the claim with the credit bureaus, with proof of payment, prior to the debt even going to collection agency. Somehow the bureaus still say that is valid with is BS.

My credit score is still 828 even with this on it (come to think of it, it may be only in Linda's name) and hers is right about the same.

Keep fighting the good fight.

Braggart. Just kidding. That's awesome DCR.
 
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Jersey Girl

Jersey Girl

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I'm ignoring it for now. I know it isn't valid. It's not on my credit report.

This isn't the first time I received a letter like this stating that I owe a debt I don't.
 

Absolute Zero

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We have something on our credit, that even though we paid it off and have proof of doing so, the collection agency still says we owe them.

I disputed the claim with the credit bureaus, with proof of payment, prior to the debt even going to collection agency. Somehow the bureaus still say that is valid with is BS.

My credit score is still 828 even with this on it (come to think of it, it may be only in Linda's name) and hers is right about the same.

Keep fighting the good fight.

If the collection agency is pestering you, the FDCPA allows you to send them a lwritten request that they cease communications . They have to honor that or they are liable for damages.

Of course, they could still sue you, etc but sounds like you have that covered by proof of payment.
 

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