Can a collection agency sue you for an old debt?

Question

This is a little complicated and not something I am proud of.

My dad gave me his credit card back in 2000. Like a gerk, I ran up the bill and paid it late all the time. Again, I am not proud of this. It got charged off May of 2005. I live in New Hampshire. I think the statute of limitation on credit card debt in N.H. is 3 years (please correct me if I am wrong).

I now have a nasty nasty debt collector calling my dads house making threats about sueing.

Can they even collect this debt since its over 3 years old?

If they can, can I represent my dad instead of having them go after him? (my dad is in his 80's and doesnt have a penny) Not that I am rich, but I would rather have them attach my check than try to take his mobile home away.

Answer 1

A collection agency is just what it sounds like. They are hired by the people that you owe money to.

The credit card company can show it as charged off, because it was turned over to a collection agency. Charged off just means it is off there books for collection. That means the credit card Co. has turn over the responsibility of collecting the debt. The collection agency tries to get the money owed in full, but if they can't they will settle with the debtor (you) the best deal they can make to settle the debt.

The best advice I can give you, is to find a lawyer near you that will help you make a reasonable settlement with the credit collector. The lawyer will ask you about your finances to find the cheapest solution to your problem. It is always better to pay a lawyer to help you with things like this, and sometimes ends up being cheaper.

Answer 2

It sounds like you already did your SOL research and understand what it's about.

So what we need to do is find out exactly when the last transaction took place.  Where did you get the info it was charged off in May 2005?  If it's solid info, they simply can not touch you.  They may file a lawsuit in the hopes you don't understand your SOL rights though.  You must appear in court and offer an "affirmative defense" by showing the SOL has expired.  If not, they will win.

Send the collection agency a letter as Bdancer said, and demand that they validate the debt, and prove they have a legal right to collect it.  Include a notice to cease and desist any further communications.  Note that you need your father to send this letter.  It may be your debt but it's his credit card and his responsibility.  Any disputes must be in his name.

Relax, they can't touch you on this.

Answer 3

It depends on if this is the statute of limitation for collecting the debt, or statute of limitation on reporting credit.  So, which statute of limitation is it?  You need to talk to a lawyer to see what can be done in this situation.  If you don't have to pay that's one thing, but if you do, then you should try to make a settlement with them and pay it off so that they can stop harassing you.  But I would definitely check with a lawyer first.

Answer 4

I'm not sure what the limitations are in New Hampshire.  You should probably check with a lawyer on this.  However, if the time period is not up they can definitely go after your father.  Since it's in his name and not yours they will not agree to go after you or take money from your check.  The only way you can help your dad out is to pay off this debt completely for him.   The only way they will let him completely out of the debt is if it was unauthorized charges.  In this case, he gave you the card thereby giving you permission.  They might take into consideration his age and lack of assets if he was to try and negotiate with them (or have a lawyer do it) but they don't have to since the money is legally owed to them.

Answer 5

You are right, the SOL is 3 years so they can not do anything legaly.  However, Tolling: payment on an account tolls the statute. So as long as nothing has been paid to the collection agency, then you are all set.

Also, seeing as to how your father is in his 80's, they can not touch his social security or if eligable his VA benefits.  In the long run, they are s**+it out of luck.

Send them the following letter (you fill in the blanks).  This will inform them that your (or your father) knows the law as to the FDCPA and should get them off your back.  I know many people who have used it and the collection agency dissapears.  They know you have a legal defense so they will not attempt any legal proceedings.

Today's Date

Your Name

Your Address

Collector's Name

Collector's Address

RE: [insert account number or name of account or name of debt]:

Dear [insert collector's name or company name],

This letter is in response to your [letter dated xx-xx-2005] (copy enclosed) or [phone call on xx-xx-2005], concerning the collection of the above referenced [account or date].

I do not believe I owe what you say I owe therefore I dispute this debt. I am well aware of my rights under the Fair Debt Collection Practices Act (FDCPA) and my state laws so I hope to save both of us a great deal of time by letting you know that not only do I dispute the validity of this debt, I have also checked with my State Attorney General and verified that the Statute of Limitations for enforcing this type of debt through the courts in (insert your state or the state in which the contract was signed) has expired. Therefore, should you decide to pursue this matter in court I intend to inform the court of my dispute of this debt and that the "statute of limitations" has expired.

This letter is your formal notification that I consider this matter closed and demand that you, or anyone affiliated with your company, stop contacting me regarding this or any other matter except to advise me that your debt collection efforts are being terminated or that you or the creditor are taking specific actions allowed by the FDCPA or my state laws.

Be advised that I consider any contact not in accordance with the Fair Debt Collection Practices Act a serious violation of the law and will immediately report any violations to my State Attorney General, to the Federal Trade Commission and, if necessary, take whatever legal action is necessary to protect myself. Be advised that I tape record all phone calls and violations of the FDCPA can result in you or your company being personally fined up to $1,000 per incident.

(Sign above name)

Hope this answers your question

LEGAL DISCLAIMER:  The advice contained herein is for informational purposes only.  It is not to be construed as Legal Counsel nor Legal Advice.

Answer 6

The Statute of Limitations (SOL) for NH is 3 years from the last activity or payment.  When exactly did you make that last payment?  The debt may or may not be beyond the SOL depending on that last payment.

If it is beyond the SOL, send the collection agency a certified, return receipt letter telling them to cease and desist all contact as the debt is beyond the SOL.  They have to stop.  But will probably sell the debt to another collection agency.  You may have to send another cease and desist to the next agency.

Or you could offer to settle the account for about 25%.  Lump sum payment gets the best deals.  Any payment plan would have be to short term.  Get any settlement agreement in writing and keep it, along with the payment proof, forever.  Do not give the collector direct access to your bank account.

Absolutely tell your father to not speak to the collectors on the phone.  Some, not so honest, collectors will do anything to get money, including threats to take his home -- they can't. The worse they could do is go to court, get a judgment and put a lien on the home.  Can't force a sale or foreclosure.

Answer 7

Statute for limitation in the UK on debt is 8 years.  It would be worth getting financial advise on this, we have Citizens Advice Bureau, I would think you have something similar over in New Hampshire.  They will contact them to arrange a repayment that you can afford.  You will get more results if you have a help agency behind you.  Good Luck.