Debt collector wants to sue?

Question

I was recently contacted by a debt collector and today I get a letter saying they might sue me. I want to verify this debt because I think it might be past the statute of limitations. If I write to them to verify the debt does it make the debt active again?

Answer 1

First off, contacting them does NOT make the debt active again.  It would only do so if you offered a payment or made any ackhowledgement of owing the debt.

Yes you have the right to request validation of the debt.  As per FDCPA rules they must provide you with certain information; here is the text:

15 U.S.C. § 1692g. Validation of debts

(a) Notice of debt; contents

Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written notice

containing--

(1) the amount of the debt;

(2) the name of the creditor to whom the debt is owed;

(3) a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector;

(4) a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector; and

(5) a statement that, upon the consumer's written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor.

(b) Disputed debts

If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) of this section that the debt, or any portion thereof, is disputed, or that the

consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or a copy of a judgment, or the name and address of the original creditor, and a copy

of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.

(c) Admission of liability

The failure of a consumer to dispute the validity of a debt under this section may not be construed by any court as an admission of liability by the consumer.

This will halt any further action by them for 30 days.  Then you can check to see if this debt is "time barred" (beyond your states statute of limitation to seek legal recourse).  Here is a link to find your states SOL

http://www.fair-debt-collection.com/SOL-...

Here is one to help you uderstand more about time barred

debts

http://www.ftc.gov/bcp/conline/pubs/aler...

Information on time barred debts.

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.

P.S.  The creditor is also required by law to notify the Credit Reporting Agencies of your dispute and to make a note of this in your records.

Answer 2

Contact the credit bureau in writing and find out if it is being reported. If it is, write back and  you can use the phrase,  " I am protesting this debt " and ask for any proof that it exists.

Some collection agencies are trying to collect on old debt that is past any limitations

Answer 3

You don't write the collection agency, you write the credit bureau and THEY will validate the debt. Don't acknowledge the debt or you may re-set the 7 year clock again.

If it's past the 7 years then it has to be taken off and they cannot sue you. If it's less than 7 years and it really is your debt then they can.

Answer 4

Statute of Limitations:

http://www.creditinfocenter.com/rebuild/...

Do NOT speak to them until you get it all figured out.  Any thing you say to them will be used against you if they sue.

You can send a letter of validation to request they prove to you this is actually your debt.

Sample letters here:

http://www.creditinfocenter.com/forms/

Sending the letter will not reset any clock.

Answer 5

They are yanking your chain. I'm not sure how much your debt is but I'm sure it's a lot less than it would cost them to sue you.

It's just a scare tactic they use.

Answer 6

Anjell is incorrect.

You file disputes with the credit bureaus and demand validation from the collection agencies.

Nothing can legally reset the 7 years they have to report this debt to the credit bureaus, but the statute of limitations is totally seperate and can usually (not always) be reset with a payment or written acknowledgement of the debt.

Disputing/demanding validation will NOT reset the SOL. Check the links in my profile for more information.

Answer 7

In response to your answer Tim, suing is not a scare tatic. It does not cost very much to sue in small claims court. in fact I know Debt buyers that litagate every debt they buy. because 99 percent of the deadbeats do not show up to dispute the debt. because it is their debt. so either way they lose. then the creditor  gets a judgement. they can garnish wages, bank accounts, to collect. you have to understand they pay next to nothing for this debt, so anything they collect above their costs is all profit. and trust me it's alot