Tomm19325

Statute of Limitations & Collection Agency

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I received a bill from a company back in August 2005 for about $500. I disputed it and offered to pay $200. The company never accepted the offer.

For over 3 and a half years afterwards, I received notices from 5 different collection agencies who attempted to collect on this alleged debt. I disputed the debt with each and every collection agency and, therefore, they never were able to put the alleged debt on my credit report.

Although the original company never contacted me after August 2005 when they issued their last bill, and they instead had 5 different collection agencies contact me, now all of a sudden, in July 2009, they sent me the same bill from August 2005! My questions are:

1. Can the original company still pursue this debt given that over a 3 and a half year period, they apparently authorized 5 different collection agencies to pursue this matter?

2. Apparently, in California, the Statute of Limitation for written contracts and open-ended contracts is 4 years. So, I believe the Statute of Limitation on this matter will run out in about a month or so. Should I ignore the company since the Statute of Limitation is about to run out? Or should I respond? I think if I respond that would “reactivate” the dispute, and reset the Statute of Limitation clock plus renew the 7 year period they could possibly put this on my credit report. Am I mistaken about this?

Any advice and help would be deeply appreciated! Thank you!

Tom

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1. If the company still owns the debt, hasn't sold it off, of course they can still try to collect on their own behalf.

2. Whether or not to respond is a tougher call. But responding will not reset the Statute of Limitations. I'm not sure about the 7 year reporting limit, but I think that is also measured from the first major delinquency, so I don't think you will be extending that either.

I think I would respond by restating your dispute. They will then have to decide whether or not to proceed with a lawsuit, knowing you're not going to default. The time to worry about an imminent lawsuit is when you get a letter from an attorney they've hired.

Good luck.

DH

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I received a bill from a company back in August 2005 for about $500..........Apparently, in California, the Statute of Limitation for written contracts and open-ended contracts is 4 years. So, I believe the Statute of Limitation on this matter will run out in about a month or so

You state that you received a bill in Aug 05 and offered a settlement. That leads me to believe that the debt was in default at that time; therefore the SOL may be up.

Look at your EQ credit report - it will show the DOFD and will give you an option on how to procede.

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This is questionable. 5 different collection agencies!? Smells like JDB to me.

Who was the creditor the CAs were trying to collect for and did it say XX assignee of YY?

Or something like Previous creditor: YY Current Creditor: XX

If so, then it's a JDB, and you should probably just tell them to FOAD due to SOL.

Then if they serve you, you have all kinds of weapons at your disposal. Just keep us updated :)

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