Credit Card Question

[GOOFY4DONALD]

My sil just asked my this question about a credit card debt. Since I only have 1 cc and no balance I had no idea. My sil has been divorced for a while. Long story short neither paid back a joint CC. It has been over 10 years and it was taken off her credit reprt a few months ago...yes I asked her to check. Anyway a collection agency called her a couple of days ago demanding a payment plan. She refused to talk to them and said for them to mail whatever they had for info. They said they did and it went back and forth until they agreed to send her a statement. Now she is wondering if she admitted guilt (she never admitted knowing or reciving anything) and it will come back onto her credit reprt. She also wants to pay it off but is worried that it will come back onto her report...does anyone know if something is removed will it come back on? I had no idea what to tell her but I figured you guys might.

 

[CajunDixie]

Go to creditboards dot com for great info. She needs to ask them for an address so as to send a cease and desist. She doesn't have to deal with them if they haven't provided her proof. IF they do put it on her credit report she can send in a dispute, the process is explained on creditboard dot com

 

[Cheshire Figment]

And also have her check the Statute of Limitations for debt collection in her state. If the last activity on the card was longer ago from the Statute they doi not have a legal leg to stand on.

Check this site http://www.fair-debt-collection.com/SOL-by-State.html

It sound as if they are a "bottom feeder" that will pay (very few) pennies on the dollar for old debt and attempt to profit by scaring people.

Do not sign anything. If you write to them, specifically state "This is not to be construed as an acknowledgment of the purported debt" and you can type your name but do not, under any circumstance, sign your name.

 

[GOOFY4DONALD]

And also have her check the Statute of Limitations for debt collection in her state. If the last activity on the card was longer ago from the Statute they doi not have a legal leg to stand on.

It sound as if they are a "bottom feeder" that will pay (very few) pennies on the dollar for old debt and attempt to profit by scaring people.

Shelives in my state but different city how can I find the statute of limitations in Montana? She is in a panic and checked her credit report today...from all 3 agencies...not one has it listed on there but now since she told them mail her the info they have (that is all she said) she is afraid they can put it back on her credit report

 

[PrincessDadx2]

Shelives in my state but different city how can I find the statute of limitations in Montana? She is in a panic and checked her credit report today...from all 3 agencies...not one has it listed on there but now since she told them mail her the info they have (that is all she said) she is afraid they can put it back on her credit report

According the the webpage listed above, the statute is 8 years. No reason to check her credit. If they do report it it is on a monthly basis, so nothing will happen the day they call. Asking for proof of debt is not admitting a debt and is her right under the law. If they send proof, which most bottom fishers never will, then she can pursue the statute of limitations angle. If she does pay it then it can come back onto her credit report for another 7 years. If they report to the credit agency it is typically 7 years from last action.

They make their money by scaring people who don't know their rights under the law. NEVER give them anything until they produce the proof, even if it was your debt. Some scum even try to collect debts that were discharged in bankruptcy, which is illegal.

 

[GOOFY4DONALD]

According the the webpage listed above, the statute is 8 years. No reason to check her credit. If they do report it it is on a monthly basis, so nothing will happen the day they call. Asking for proof of debt is not admitting a debt and is her right under the law. If they send proof, which most bottom fishers never will, then she can pursue the statute of limitations angle. If she does pay it then it can come back onto her credit report for another 7 years. If they report to the credit agency it is typically 7 years from last action.

They make their money by scaring people who don't know their rights under the law. NEVER give them anything until they produce the proof, even if it was your debt. Some scum even try to collect debts that were discharged in bankruptcy, which is illegal.

The reason she checked her credit was to see if the original CC was still on there and it wasn't. If thet do send proof and she starts to pay it it will come back on her report but if she doesn't do anything will it still come back on her report?

 

[DOOM1001]

A reporter in one of my local TV stations did a report and mentioned this exact scenario a couple of days ago.He basically said if you know it's a very old debt it's likely from one of those debt collectors who pay pennies on the dollar for old accounts,he said don't pay them or accept the debt as it will show up again on your credit report again.

 

[minnie1928]

The reason she checked her credit was to see if the original CC was still on there and it wasn't. If thet do send proof and she starts to pay it it will come back on her report but if she doesn't do anything will it still come back on her report?

Odds are, they don't have the proof to send. But, if they do send her something she can send a letter to them citing the statute of limitations has been exceeded and that they are legally unable to collect on the debt.

I had a similar situation happen to my mother a few months ago. Debt collector called about a debt that my mother does not remember. Based on the little information they gave her (including the date of the debt from the original creditor) I was able to find out that it was outside of the statute of limitations for collection. I went to www.creditboards.com for advice on how to handle it. They suggested that I send a "FOAD" letter (a very colorful acronym that I can't repeat here, google it to find a sample) to the collection agent via certified mail. So, that's what we did.

It is unlawful for them to report on a debt that is not legally collectible.

Oh, and mom's credit report was clean too.

 

[dd50]

Go to creditboards dot com for great info. She needs to ask them for an address so as to send a cease and desist. She doesn't have to deal with them if they haven't provided her proof. IF they do put it on her credit report she can send in a dispute, the process is explained on creditboard dot com

 

[dd50]

Odds are, they don't have the proof to send. But, if they do send her something she can send a letter to them citing the statute of limitations has been exceeded and that they are legally unable to collect on the debt.

I had a similar situation happen to my mother a few months ago. Debt collector called about a debt that my mother does not remember. Based on the little information they gave her (including the date of the debt from the original creditor) I was able to find out that it was outside of the statute of limitations for collection. I went to www.creditboards.com for advice on how to handle it. They suggested that I send a "FOAD" letter (a very colorful acronym that I can't repeat here, google it to find a sample) to the collection agent via certified mail. So, that's what we did.

It is unlawful for them to report on a debt that is not legally collectible.

Oh, and mom's credit report was clean too.

A FOAD letter takes care of them. She should stay off the phone with them until she sends the letter.

 

[minnie1928]

A FOAD letter takes care of them. She should stay off the phone with them until she sends the letter.

Good point, I forgot about the phone advice. Actually, that's good advice for dealing with any collection agent. Any communication should be handled in writing.

 

[kacaju]

my Aunt passed away 3 years ago. While I was settling all her accounts I called her cc told her she passed away and asked for the amount owed (she passed away right after Christmas, so I wanted to be sure I got all charges she may have made)
I got the final bill.. once I was able, paid it through the Estate and a few months later I got a collection notice saying she owed $76. I called and they claimed they could not tell me where this charge was from and then I get a letter the next month that I could *settle* the bill for her Estate. Thank goodness I had a lawyer that was settling the Estate she was able to fire off a letter to stop them from this crap.
It was *only* $76 but I could see if they did that with every person who dies they could rack up a good chunk of change!!

 

[NVDisMom]

All good advice so far.
1. DO NOT SPEAK WITH THEM ON THE PHONE AGAIN - yes, I am yelling because it is vitally important
2. go to creditboards.com- spend some time on the forums, there are some very well informed people on there
3.Send this company a cease and desist letter telling them to only contact you through the mail, this can be included in that FOAD letter. Send it by certified mail, return receipt requested.
4.Do not send them any sort of payment
5.Or anything with your signature on it, signatures have a funny way of jumping from one piece of paper to another
5. Check your reports in 3-6 months to be sure it still isn't there. Its easy enough to deal with if it should appear because its beyond legal reporting periods and statute of limitations, but it takes time and leaves a residual effect on scores.

Sounds a little paranoid doesn't it? Well, you should be, these places will do everything in their power, including completely illegal acts, to extort money from you. Screen calls until they receive the FOAD and cease and desist and be extra careful you do not give out personal and financial info to people you do not initiate contact with.

Good luck, these bottom feeders can be tenacious and be prepared for it to get sold to another one in the future and do it all over again...

 

[GOOFY4DONALD]

thank you all. I am telling her all of this as I am receiving it. She is so worried and I feel so bad for her. She was left with debt from her ex and much debt because with 2 kids and no job she had to live on CCs until she got a job. She didn't want to file bankruptcy and after a few years she paid everything off. This was a credit card that she remembers, barely. Since the CC has already fallen off her credit report (all 3) I am guessing the SOL has legally passed (right?) and I will keep giving her advice. She did not agree to any payment at all (she said they pushed HARD). She is just so scared because she was sued by a CC company before (but this card was only 6 months past due not 7 or 8 years). I am just trying to keep her calm so she doesn't freak out and want to pay.

 

[GOOFY4DONALD]

BTW what is FOAD?

 

[minnie1928]

BTW what is FOAD?

If you google it, you will find it. I don't think the mods will appreciate it if I spell it out.

 

[NVDisMom]

use your imagination for the first word...
off
and
die

 

[cm8]

And also have her check the Statute of Limitations for debt collection in her state. If the last activity on the card was longer ago from the Statute they doi not have a legal leg to stand on.

Check this site http://www.fair-debt-collection.com/SOL-by-State.html

It sound as if they are a "bottom feeder" that will pay (very few) pennies on the dollar for old debt and attempt to profit by scaring people.

Do not sign anything. If you write to them, specifically state "This is not to be construed as an acknowledgment of the purported debt" and you can type your name but do not, under any circumstance, sign your name.

,

 

[GOOFY4DONALD]

use your imagination for the first word...
off
and
die

I just got it I am such a dork

 

[GOOFY4DONALD]

Thanks again for everything. She came to my house toda and we have been looking over on the credit boards...great info sorta hard to navigate. She has 2 main concerns...1 they will add this back onto her credit report even though the original CC has been removed AND she has 2 CCs from this same major CC company. 1 went into default in 2002 and 1 went into default in 2008. 6 months after the 2008 one went into default she was contacted by a local lawyer and she paid it off (I guess it was the fact that it was local and an atty so she was scared). She is now afraid that this local atty will grab her old cc and sue her (but I figured he would have already done this if he was going to). I can understand her fear she has had the roughest 5 years and it is just starting to look up for her...now this.