Selling Old Debt

[questions]

I have a question on whether this is legal or not? I had debt from my past when I was young that I did not pay. It went to collection and over 7 years have passed so it's now off my credit report. I thought that would be the end of it.

But I was contacted by another company that now has my debt and they are still trying to get the money from me still. How can a bank sell the old debt to another company when the 7 year time limit has passed? I think that should be illegal. Is there a law against that? And what can I do to get this new company from calling and bothering me?

[maat55]

I have a question on whether this is legal or not? I had debt from my past when I was young that I did not pay. It went to collection and over 7 years have passed so it's now off my credit report. I thought that would be the end of it.

But I was contacted by another company that now has my debt and they are still trying to get the money from me still. How can a bank sell the old debt to another company when the 7 year time limit has passed? I think that should be illegal. Is there a law against that? And what can I do to get this new company from calling and bothering me?

SETTLE THE DEBT. Might work. I think there should be a law against spending money you don't have and not paying it back.

To answer your question, unless there is a SOL(statue of limitation)on the debt, they can come after you at anytime they choose.

Maybe someone else can help you with the easy way out.

[2moretrees]

Do not settle the debt! If you try to settle it, it will reappear on your credit report and stay there another 7 years.

Maat55 - I think you're making assumptions that this forum doesn't need when people ask for help. I have no idea what the debt this person had when he/she was young, but it could have been many things and not just irresponsible spending. Telling them to settle the debt because you assume it was irresponsible when that will reactivate the debt on credit reports isn't good advice in my opinion. Would you give the same advice if the person who had the debt from a medical condition?

[maat55]

Do not settle the debt! If you try to settle it, it will reappear on your credit report and stay there another 7 years.

Maat55 - I think you're making assumptions that this forum doesn't need when people ask for help. I have no idea what the debt this person had when he/she was young, but it could have been many things and not just irresponsible spending. Telling them to settle the debt because you assume it was irresponsible when that will reactivate the debt on credit reports isn't good advice in my opinion. Would you give the same advice if the person who had the debt from a medical condition?

BTW, if they we're able to settle, why not do it? They still owe the money. I'm tired of this "Why should I have to pay my debt" mentality.

[KatieNK]

That is your opinion and you are entitled to it but you have absolutely no idea about this guy's situation. It could even be debt that someone else incurred and he got stuck with! At any rate, it is none of your business. He asked a factual question so if you can't answer it- then move along.

[segmond]

To the original poster, find out what the statue of limitation is on your debt, don't acknowledge it, tell them you have no idea what they are talking about and not to contact you any more. If it is past the SOL in your city, write a letter, quote the law and tell them to cease from it, if they contact you, sue them in small claims court for harrasment.

[tripods68]

You should be able to pull your credit report and look closely who reported you if it was a credit card, auto, medical, etc. The report should have a telephone number to call.

I had a situation like this about 7 years ago, when I applied for an auto loan. My credit union wouldn't approved me until I settled the negative on my credit. They pulled my credit report and explained the process. After calling the collection agency, they told me it was a credit card annual fee that trigger this whole thing that I was unaware and never paid because I moved to a new address. I never got the original bill. My lender finally approved me the loan after settling with the collection agency. It was $75 annual fee that became $250.00 bill. I settled for $150.00 instead. Two years later, I applied for another car loan (I sold my old car) and was approved immediately.

[maat55]

That is your opinion and you are entitled to it but you have absolutely no idea about this guy's situation. It could even be debt that someone else incurred and he got stuck with! At any rate, it is none of your business. He asked a factual question so if you can't answer it- then move along.

I gave my oppinion based on the tone of the question. When I was young and making much less money, I was under insured 7k on an accident I had, I paid it out. I had an hospital bill of 2500 not covered by my insurance, I paid it out.

Jeffrey desides whether to send it on, I stand by my oppinion. And who made you the response police? Many people give their oppinions with answers in this forum.

[maat55]

Shut the hell up!

To the original poster, find out what the statue of limitation is on your debt, don't acknowledge it, tell them you have no idea what they are talking about and not to contact you any more. If it is past the SOL in your city, write a letter, quote the law and tell them to cease from it, if they contact you, sue them in small claims court for harrasment.

Hmm, lot of character in that approach. Good advice.

[jeffrey]

Before this thread gets out of control, let's once again go over the forum rules here: It doesn't get personal.

Maat55 has every right to his opinion and if that opinion is that the person should pay off the debt, then that is fine.

As others have pointed out, doing so comes with some consequences that can affect the credit report which is also important.

Calling a person names or making inferences about them is not allowed - the point is to give people information about the questions they ask, not make it personal. If you have any questions about these forum rules, pm or email me.

[KatieNK]

You can stand by your opinion all you want, you are entitled to do so. All I was saying is that it is not your place to pass judgement.

[cptacek]

I had debt from my past when I was young that I did not pay.

If you agreed to the terms of taking on the debt and borrowed the money, you owe that money until you get it paid off. Doesn't matter if it is legal or not to not pay it. You should pay it.

I'm tired of this "Why should I have to pay my debt" mentality.

ME TOO!

[cicy33]

I have a question on whether this is legal or not? I had debt from my past when I was young that I did not pay. It went to collection and over 7 years have passed so it's now off my credit report. I thought that would be the end of it.

But I was contacted by another company that now has my debt and they are still trying to get the money from me still. How can a bank sell the old debt to another company when the 7 year time limit has passed? I think that should be illegal. Is there a law against that? And what can I do to get this new company from calling and bothering me?

I don't know if this will help you but after I read the posts I looked it up and apparently there is actually a site that lists this info! sorry not sure how to link it. You can also do a search on statute of limitations for debt

Statutes of limitation for delinquent debt (Page 2 of 2)

[trueknight]

Even after the statute of limitations expire, there are companies that buy old debts for pennies on the dollar. That is why after all this time you are getting contacted again. If this particular company doesn't have any luck with you, then they will probably sell it on to someone else willing to take a chance to collect. And yes, each new company that buys your debt can show up on your credit report. *frowns* I know from personal experience, right or wrong.

[Investing First Steps]

Going all the way back to the original question:

It is perfectly legal. The statute of limitations applies to their right to sue you. Rest assured the purchaser knew they could not sue you when they bought it, but they also paid very little for it.