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I recently received a memo from a collection agency threaten to sue if I dont pay.

If that "memo" has any wording like "unless you dispute the validity of this debt within 30 days..." send them a DV immediately. Just in case they sue, you'll want to use your states SOL as your defense. You can also bring whatever "proof" of the debt they provide to court.

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

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