I'm being asked to pay $4200 bill thats 8 years old, its on my crd report,and i was only 17. Is this legal?

Question

I received a letter yesterday telling me that I owe over $4200 to an agency that had purchased my account.I called the person referenced in the letter, and she told me the account was opened in 2000, payed through 2001, and then went delinquent. I informed her that I know nothing of this account and that I was only 17 in 2000, so not of legal age to enter into a contract. I visited annualcreditreport.com, and it only appears in one of the three reports from the agencys. I learned that negative information (aside from bankruptcies) should only appear for seven years. It says it is due to be removed in 2009, but wasn't put on till 2007. I don't believe it should be there at all, because I was not of legal age, and its been seven years since the account went delinquent. She also told me that the corporation was attempting to garnish my wages to repay the debt!!! I had never heard of this account before yesterday. How was an account opened when I wasn't of age, and what do I do now?

Answer 1

Well first off, they can't garnish your wages without a court order, and that would only come after they won a judgement against you.

Send this collection agency a demand to validate letter. By law (assuming that this was their initial contact with you), they cannot continue collection activities until they validate the account. That includes posting to your credit report or verifying listings already placed there.

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

You also didn't say what the debt was, so I assume it was a credit card. Check the statute of limitations in your state to see if it has expired.

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

You also have the defense of being a minor at the time that this debt was incurred.

Good luck, let me know if you need any help with this.

Answer 2

Dispute it to the credit bureau that reports it as "not mine" and make them prove that it is yours.

Stay off the phone with them until you find out what is going on with your dispute. I suspect it will fall off in 30-45 days.

Answer 3

Derogatory items age off your credit report 7-1/2 years from the date of first deficiency.  If the account was paid thru 2001, the 7-1/2 years could run to 2009.

First, dispute the item with the credit bureau as not being yours.

Second, send the collection agency a certified, return receipt letter requesting validation to include name of the original creditor, date of first deficiency, date of lasts payment, detailed statement including how interest and fees were calculated, and copies of any contract or other document that proves this debt is yours.  Give them 30 days.

If they do respond, you should have all the ammunition you need to dispute to both the credit bureau and the collector.

It could very well be that the collection agency did a skip trace for someone with a similar name.  Don't talk to these people on the phone.  Antique debt collectors tend to not care much about honesty and following the rules.

Answer 4

The negative credit info stays o for a period of time.  But, since they just now started the collection proceedings, the time starts now.  

If this is dismissed as a charge off, it will hurt you credit rating. I am a mortgage broker, and am quite familiar with this scenario. Underwriters can look at you and classify you as a "what can I get away with" borrower. This does not help you at all.

It Will  also could look like you incurred a debt, with no intent to pay. This can appear on not only your credit report, but on background investigations.  This is reason to be turned down for jobs.

Answer 5

the same thing happen to me in 2000 and i was 14 at the time and now im 22 and the person ran up $8,000. I had the three agencys put a block on my account so that no one will open up anything in my name but im still going through it and i will be writting a letter to each company so they will know that i was underage. i just want this off my credit report so that my score will go up

Answer 6

You were not of legal age at the time of the debt. This makes the debt invalid. This is the fault of the credit grantor and they have to eat it. There's nothing that can be done. In writing, tell them to provide proof of the debt and the date the debt was incurred.

Quite often, a family member will take out a loan in their kids' social security number and years later it pops up. This could be the case now.

Answer 7

Send the collection agency a letter via Certified Mail + Return Receipt stating:

I was a minor when this alleged debt was incurred. Per the Fair Debt Collection Practices Act, I am requesting validation that I was of legal age when this alleged debt was incurred.  Per the Fair Debt Collection Practices Act, I am requesting written validation of this alleged debt and that said alleged debt is within the statue of limitations. Per the Fair Debt Collection practices act, cease all verbal communications with me.

Send the credit bureau a letter via Certified Mail + Return Receipt stating:

Per the Fair Credit Reporting Act, I am requesting validation that this alleged debt is being reported within the 7-year allowable time frame as allowed by the Fair Credit Reporting Act.

Answer 8

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