Summons Served for a Civil Matter by OAG of New York State for an alleged Debt

[PupnCub]

First I want to apologize for the length of this post, however I want to provide as much information as possible to get a correct answer or insight or help to my situation.

 

On 7/3/2013 at approximately 6:30pm I was served a summons with notice from a constable for an alleged debt that I owe in New York State. This summons is from the Attorney Generals Office Civil Recoveries Bureau. It states that I have 20 days to appear in this action by serving notice of appearance on plaintiff's attorney. It further states the following: "Take notice that the nature of this action and the relief sought is to recover damages for overpayment of financial aid, OR unpaid charges, OR room and/or board OR fees OR fines. for the Spring and or Summer of 2008. The amount sought is a little of $2,000.00.

It further states that this is not for any Student Loans or Guaranteed Funds.

 

Ok - so here is the history.

 

In 2006 I received what is called a living expense check from this college, which is a refund that I am entitled to once all of my education costs have been met. This was sent to me directly and I cashed it.

 

In 2007 - Actually January 2, 2007 is when I first received any communication from the Attorney Generals Office stating that there was a mistake and demanding that I repay the college. I also received another letter on January 22, 2007. I did respond disputing this alleged debt. There was NO REPLY from the Office of the Attorney General for 2 years.

 

In 2009 - April 12 & 28 I received letters demanding payment of alleged debt from one of their collection specialist. I again disputed the debt with them.

 

In June of 2009 I received a summons similar to the one that I received on 7/3/2013 - stating that I had to appear in court. I disputed this summons as the constable left this summons on my roommates car in the pouring rain so it was never handed to me personally or left on my door. I called the Attorney General and stated that I was not served properly, so they sent a summons to me by regular mail and told me that constitutes "Legal Service".

 

I sent my response to their summons certified mail shortly after. There was no court case or Judgment - I was not served any further papers.  

 

There was NO REPLY or communication from the Attorney Generals Office for another 2 years.

 

In September of 2011 I then received a letter from the Attorney Generals Office  which reads:

 

Supreme Court of the State of New York, County of Albany

State of New York, Plaintiff v. Me, Defendant.

 

NOTICE OF DISCONTINUANCE -received by the Albany County Clerk 9/30/2011 at 11:31pm

 

PLEASE TAKE NOTICE that, pursuant to CPLR 3217 (a)(1), the undersigned attorney for the plaintiff herein discontinues the above mentioned action without costs and without prejudice. Dated September 26, 2011. Yours, etc., Assistant Attorney General.

 

There was no other communication from them until August 29, 2012 - when I received a letters stating that I owed them $3,347.45. I did not respond to this letter (which is my fault).

 

There was no further communications from them until July 3, 2013 which is when I received the summons and notice.

 

Now this is my perspective on the whole situation and maybe my defense.

 

I am going to write them a letter sent CMRRR demanding a complaint, which I have never received. I am also thinking about asking for the check that I cashed back in 2006.  I am going to dispute the amount that I owe as they can not come up with one sum that matches. My biggest defense with this is that they are saying it is from the Spring and or Summer of 2008, however I have proof that my first communication from them regarding this debt was in January of 2007 - so with that being said I believe that the Statute of Limitations has expired on this debt since the statute is 6 years in New York State, and since I am actually a Pennsylvania resident the Statute here is 4 years. There is no way I can make the trip to Albany NY to appear if is 400 miles which is almost an 8 hour drive for me.

 

I do need some help if there is any out here, what do I do next - do I have a chance at all of fighting this? The college messed up not me.

 

 

[shellieh98]

I don't know about PA law, or NY law, so you would need to look in your PA rules of civil procedure, and maybe NY rules of civil procedure.  Find out there how you  would go about an answer to  the suit, for a  motion to dismiss for improper venue.  If you live in PA, they need to move the suit to PA.  Once in PA you can assert your affirmative defense of time barred.  I believe the first step would be to get the case moved to where you are, I know there are a few PA board members that may be able to advise you on how to go about that, but it will be in your rules.

[Clydesmom]

In 2006 I received what is called a living expense check from this college, which is a refund that I am entitled to once all of my education costs have been met. This was sent to me directly and I cashed it.

 

In 2007 - Actually January 2, 2007 is when I first received any communication from the Attorney Generals Office stating that there was a mistake and demanding that I repay the college. I also received another letter on January 22, 2007. I did respond disputing this alleged debt. There was NO REPLY from the Office of the Attorney General for 2 years.

 

I do need some help if there is any out here, what do I do next - do I have a chance at all of fighting this? The college messed up not me.

 

I am going to disagree here.  Sometimes accounting reviews result in determining that a refund was issued in error.  You were notified and CHOSE to ignore it.  Multiple times.  That isn't the school messing up at this point it is YOU.  There has been SIX years between being notified of the error and having to return the money and now and you haven't dealt with it.

 

Is this a state school?  If so, then the SOL doesn't apply and given that the OAG is involved leads me to believe that it is a state school.  

 

More than likely the amounts vary because they have been adding on statutory interest since you didn't pay when notified.  

 

You might have a defense of improper venue which would make them start over and might buy some time to settle the account.  

 

I am going to write them a letter sent CMRRR demanding a complaint, which I have never received. I am also thinking about asking for the check that I cashed back in 2006.  I am going to dispute the amount that I owe as they can not come up with one sum that matches. 

 

Which is the WRONG way to handle this since they have actually already filed suit.  If you are in PA then filing against you in NY is the wrong venue.  However, if it was the right venue the way to get documents is by filing a motion with the court through discovery and interrogatories.  It is WAY to late to DV through CMRR once the suit has been filed.  As to the amount that is a defense you mount in the case they don't have to explain it before the trial.  They DO have to explain it to the court before getting awarded that amount.

 

I would start working on a dismissal based on wrong jurisdiction and venue.  Then try to settle it as clearly the state has become serious about this again.

[PupnCub]

Wow sorry that you feel I am the one that is at fault here - If I wanted to be chastised I would have asked for it. I did not choose to ignore anything I responded, if a mistake was made on the schools behalf, that is on them - they told me to go ahead and cash the check, so I did. There was only 1 time in August - I do not believe that constitutes me taking no action. They never served me with a complaint or court case either.

 

I have been disputing this ever since 2007 and they wait 2 years at a time to send any information to me, and do not respond to my disputes at all... so am I still the one who you feel chooses to ignore the situation or is it them?

 

How about the fact that they know and have known that I am not a New York resident but yet they file something in court - which is 400 miles away from where I live - they are banking on me NOT showing up or fighting this and getting a default judgment.

 

Thank you for your punishing respond - just saying.

[Clydesmom]

 I did not choose to ignore anything I responded, if a mistake was made on the schools behalf, that is on them - they told me to go ahead and cash the check, so I did. 

 In your first post you said:

 

In 2007 - Actually January 2, 2007 is when I first received any communication from the Attorney Generals Office stating that there was a mistake and demanding that I repay the college. I also received another letter on January 22, 2007. I did respond disputing this alleged debt. 

 

You received two notices in 2007 stating there was a mistake and you should not have received a refund.  You disputed it but never followed up for any resolution.  

 

Then five years and an attempted law suit later:

 

There was no other communication from them until August 29, 2012 - when I received a letters stating that I owed them $3,347.45.

 

Again, you did not respond but now admit you were at fault for ignoring it this time around.  

 

Once they filed the first suit they were not required to respond to any of your further DV requests.

 

Even if you take the stance that the college made an error, you do not get to financially benefit from that error.  If the bank made an error and took $2000 from your account would you want it corrected and returned?  Of course.  Well the college made an error and you have to pay the money back.

 

 I have been disputing this ever since 2007 and they wait 2 years at a time to send any information to me, and do not respond to my disputes at all... so am I still the one who you feel chooses to ignore the situation or is it them?

 

You have had 7 years and multiple letters to do something about it.  Many consumers would have followed up with SOMEONE after not hearing anything for 30-60 days to find out the status of the situation.  You opted to ignore it and hope it went away.  Can't say that I blame you as they have been passive aggressive about pursuing it.

 

Under the FDCPA (which does not apply to original creditors which is what the state is) they do NOT have to respond to you at all and can simply file a lawsuit which they have done.

 

How about the fact that they know and have known that I am not a New York resident but yet they file something in court - which is 400 miles away from where I live - they are banking on me NOT showing up or fighting this and getting a default judgment.

 

I told you the first time:  I would file a motion to dismiss based on the wrong jurisdiction and lack of proper venue.  THEN you can offer a settlement so that they don't sue you in PA.  I didn't agree with their suing you in NY but if you don't want a default judgment you have to actually do something about it properly following court procedures.

 

Thank you for your punishing respond - just saying.

 

I tell it like it is.  The court is not going to sugar coat their handling of you or your case.  If you choose to ignore this again you will then have to deal with a default judgment.  Or you can get it dismissed and ignore it again and wait and see if they sue you in PA.

 

If you wanted someone to tell you only what you want to hear you should have said so. 

[Seadragon]

Taking the argument a step further, Did the school use this as a pretext to gain interest on an unofficial loan. Since this is not a written contract it would be the schools burden to prove anything untoward has happened. statute of limitations is probably gonna apply and the fact they waited this long to exercise any right.

 

How can they go to court and say that our records are a soup sandwich but we can 100% show evidence. I mean really thif their accounting was f'ed up enough to make an error like that how can they even say an error occurred.

 

Sorry OP sometimes in a free society some elicted opinions will not be to our liking but contrary opinions do make for helpful discourse. By taking the schools side of the argument, you will be able to see what their arguments will be at trial. @ Clydesmom,How noble for you to take the schools side to help toughen up the argument, always refreshing when we have active discussion in addition to the bolstering of spirits.

[Seadragon]

And for the record, debt collection is governed under the least sophisticated standard so it really doesn't matter, as the key issues will be if the made continuing assertion to get it back. You see they cannot get it back, if they cannot prove their case.

[racecar]

IV. Transfer of Delinquent Accounts to the OAG or to a Private Collection Agency

http://www.suny.edu/sunypp/documents.cfm?doc_id=390

[PupnCub]

Seadragon: According to the letters I received the State is stating that I will owe a 5% interest rate on this disbursement by the College. They also state in another letter that I can assessed a 22% collection fee plus penalty interest  for this disbursement, that again is not a Federal Loan, a Student Loan, or a Loan of any kind.

 

In their summons they state that this is for the Spring and Summer of 2008 - I was not in college then and I was not living in New York State at all. According to my records I attended school in 2006 - so their facts are way off.

[PupnCub]

Thank you racecar!!! I found some interesting areas in the policy.

 

1) Delinquent accounts will be accepted by the OAG up to six months prior to the expiration of the statute of limitations, which is six years from the start of the semester the debt occurred. If an individual owes money for more than one semester, all accounts should be transmitted at the same time. The following address should be used when forwarding delinquent student account information to the OAG:

 

So the first communication received from the OAG to myself was 1.2.2007 - since they state that there is a statute of limitations of 6 years; would that mean that as of 1/2/2013 that statute has expired in New York? and since I am a Pennsylvania State resident the Statute of Limitations here is 4 years, which if I am correct this account was dead as of 1/2/2011.

 

 

F.    Communications Received After File Has Been Transferred to the OAG

 

 

If any communication concerning the account is received from the debtor or any other source (i.e., lawyer or court) after the file is referred to the OAG; it must be forwarded immediately to the OAG. The OAG is responsible for responding to the debtor.

 

Ok after I sent them my disputes they did not respond, they waited every 2 years, and when they did respond it was with a summons.

[Clydesmom]

Taking the argument a step further, Did the school use this as a pretext to gain interest on an unofficial loan. Since this is not a written contract it would be the schools burden to prove anything untoward has happened. statute of limitations is probably gonna apply and the fact they waited this long to exercise any right.

 

According to the link racecar provided the state policies on collection accounts is clear and they can pursue this.  Because it is a state school and they have already said the debt is not related to student loans or tuition then they are not holding it out as a loan.  It has already been said it is an over payment and the student was not entitled to a refund.  The state has the legal right to recover the money.

 

Actually if you read the student handbooks when it comes to the financial aspect of college entering into the written agreement for any kind of financial support is considered a written contract.  You don't know what the OP signed back then and what records they have to support their case.  Assuming they have NONE is really dangerous.

 

How can they go to court and say that our records are a soup sandwich but we can 100% show evidence. I mean really thif their accounting was f'ed up enough to make an error like that how can they even say an error occurred.

They aren't saying the records are messed up.  YOU have know way of knowing what triggered the over payment but ignoring the whole situation isn't going to make it go away.

 

Accounting errors happen all the time.  It doesn't mean that one side gets to unreasonably profit from them.  You know that.  If they don't have the proper documentation for court then they lose their case.  I am saying DO NOT assume they don't have anything.  This is not a junk debt buyer it is the Attorney General. They don't play school yard ball when in court like a JDB that hires a brand new lawyer whose diploma still has wet ink and sends them nothing to support it.

 

Seadragon: According to the letters I received the State is stating that I will owe a 5% interest rate on this disbursement by the College. They also state in another letter that I can assessed a 22% collection fee plus penalty interest  for this disbursement, that again is not a Federal Loan, a Student Loan, or a Loan of any kind.

 

According to the link racecar provided state schools in NY can add on statutory interest, late fees, and collection fees as long as they do not exceed state interest limits on those amounts.

 

@ Clydesmom,How noble for you to take the schools side to help toughen up the argument, always refreshing when we have active discussion in addition to the bolstering of spirits.

 

How noble of YOU to ignore where I said I didn't agree with their tactics and to get a dismissal and then try to deal with it on his terms instead of ignoring it again.  How noble of YOU to ignore where I said I didn't blame him for letting it ride since they diddled around so much.  

How noble of YOU to decide that simply putting blinders on and pretending that this is automatically a conspiracy theory and isn't a valid debt misleading posters that if they simply send a letter or file a motion their whole world will turn rosey.

 

You can sit there and pretend that EVERY debt someone owes is suspect or figure out that people run up debts and actually owe money.  This is NOT a junk debt buyer or CA dealing with a credit card debt that has been sold numerous times.  This is the STATE.  The government.  The Attorney General is suing.  They have WAY more powers to pursue this and are not subject to a SOL on doing so.  

 

Getting a judgment is going to jack a credit report for decades in some states.  Undoing the judgment is even harder.  Sending a CMRR letter when a lawsuit has already been filed even if in the wrong jurisdiction is the WRONG response and you KNOW It.  By all means mislead the OP that sending that letter will solve the problem.  Personally if it were me I would be filing the proper motion so that I had a legal basis for dismissal on appeal to use if they do get that judgment anyway.

[Seadragon]

Seadragon: According to the letters I received the State is stating that I will owe a 5% interest rate on this disbursement by the College. They also state in another letter that I can assessed a 22% collection fee plus penalty interest  for this disbursement, that again is not a Federal Loan, a Student Loan, or a Loan of any kind.

 

In their summons they state that this is for the Spring and Summer of 2008 - I was not in college then and I was not living in New York State at all. According to my records I attended school in 2006 - so their facts are way off.

quite understandably so because the SOL is up on this. They are strong arming you. You can possibly make some appropriate stuff but getting this out of new York if Pennsylvania has a smaller sol would be best. a Motion to Quash is the most appropriate motion to file in New York for Jurisdiction and make sure you are specially appearing so that you do not trash your jurisdiction argument.

\

A Motion to Dismiss would probably concede jurisdiction as I do not believe you can actually specially appear for a Motion to Dismiss in New York, and therefore I would not file one of those like others have stated. I am glad you didn't so far as that would have been disastrous advice.

 

You may have to get a lawyer in New York to do the Motion to Quash, or you may have to see whether the new York jurisdiction would be better. Look into whether Pennsylvania is indeed a better fit for litigating a claim such as this. It seems to me that they intentionally did this to fabricate a debt. It has the Stink of JDB all over it.

[racecar]

Clydesmom is like a doctor - sometimes they tell the truth you don't want to here.

[Clydesmom]

 

Thank you racecar!!! I found some interesting areas in the policy.

 

1) Delinquent accounts will be accepted by the OAG up to six months prior to the expiration of the statute of limitations, which is six years from the start of the semester the debt occurred. If an individual owes money for more than one semester, all accounts should be transmitted at the same time. The following address should be used when forwarding delinquent student account information to the OAG:

 

So the first communication received from the OAG to myself was 1.2.2007 - since they state that there is a statute of limitations of 6 years; would that mean that as of 1/2/2013 that statute has expired in New York? and since I am a Pennsylvania State resident the Statute of Limitations here is 4 years, which if I am correct this account was dead as of 1/2/2011.

 

THIS you can use.  I would file a motion to dismiss based on a wrong jurisdiction and the SOL having expired.  

 

There is one potential problem:  when they filed the first suit that tolled the SOL at that point until the date of dismissal.  So if it was filed on X date 2009 within the SOL and sat active but unpursued in court for two years then dismissed on Y date 2011, the SOL starts running again on the date of dismissal.  You need to find out from a lawyer how the statute of limitations will be applied.  

Because you went to school in NY and incurred the debt there the NY SOL is likely the one they will use even though they have to pursue you where you live now. 

 

 

Ok after I sent them my disputes they did not respond, they waited every 2 years, and when they did respond it was with a summons.

 

Any creditor is free to file their response as a summons.  Nothing in collection laws prohibits them from ignoring the demand and proceeding right to lawsuit.  That is because they have to prove their case in court if it goes to trial.

 

 

 

[Clydesmom]

Clydesmom is like a doctor - sometimes they tell the truth you don't want to here.

 

Sometimes the truth you don't want to hear is EXACTLY what you need to know to protect yourself.  

[PupnCub]

Just out of curiosity is it possible that a JDB if this is the case could be portraying themselves as the Attorney General or representative thereof?

[Clydesmom]

Just out of curiosity is it possible that a JDB if this is the case could be portraying themselves as the Attorney General or representative thereof?

 

It is entirely possible but the easiest way is to see where the case is filed and by who.  If the OAG is listed then it isn't a JDB portraying themselves as the state.  

 

Typically the ones who attempt to portray themselves do NOT file lawsuits alleging they are the OAG because that would get the OAG's attention REAL fast.  The goal of those masquerading is to get payment without going to court.  Although one did go to great lengths to rent space and set up a pseudo courtroom with baliffs and everything to scare debtors into paying.

 

The court docket will tell if it is a real case or not.

[PupnCub]

I was not even given an address for the court house at all, and the process server is from a company called Star Process Service, Inc located at 163 Delaware Ave, Suite 3, Delmar, New York 12054. They sent some form to the Postmaster to verify my address and if I lived there or not - all the Postmaster returned was a simple "Receives Mail at this Address". On that form it give a Index or Docket # and that is it.

 

Should I have been provided with an address of the Court so I can communicate with them or at the least the Court Clerks office?

[Seadragon]

 

According to the link racecar provided the state policies on collection accounts is clear and they can pursue this.  Because it is a state school and they have already said the debt is not related to student loans or tuition then they are not holding it out as a loan.  It has already been said it is an over payment and the student was not entitled to a refund.  The state has the legal right to recover the money.

 

Actually if you read the student handbooks when it comes to the financial aspect of college entering into the written agreement for any kind of financial support is considered a written contract.  You don't know what the OP signed back then and what records they have to support their case.  Assuming they have NONE is really dangerous.

 

They aren't saying the records are messed up.  YOU have know way of knowing what triggered the over payment but ignoring the whole situation isn't going to make it go away.

 

Accounting errors happen all the time.  It doesn't mean that one side gets to unreasonably profit from them.  You know that.  If they don't have the proper documentation for court then they lose their case.  I am saying DO NOT assume they don't have anything.  This is not a junk debt buyer it is the Attorney General. They don't play school yard ball when in court like a JDB that hires a brand new lawyer whose diploma still has wet ink and sends them nothing to support it.

 

 

According to the link racecar provided state schools in NY can add on statutory interest, late fees, and collection fees as long as they do not exceed state interest limits on those amounts.

 

 

How noble of YOU to ignore where I said I didn't agree with their tactics and to get a dismissal and then try to deal with it on his terms instead of ignoring it again.  How noble of YOU to ignore where I said I didn't blame him for letting it ride since they diddled around so much.  

How noble of YOU to decide that simply putting blinders on and pretending that this is automatically a conspiracy theory and isn't a valid debt misleading posters that if they simply send a letter or file a motion their whole world will turn rosey.

 

You can sit there and pretend that EVERY debt someone owes is suspect or figure out that people run up debts and actually owe money.  This is NOT a junk debt buyer or CA dealing with a credit card debt that has been sold numerous times.  This is the STATE.  The government.  The Attorney General is suing.  They have WAY more powers to pursue this and are not subject to a SOL on doing so.  

 

Getting a judgment is going to jack a credit report for decades in some states.  Undoing the judgment is even harder.  Sending a CMRR letter when a lawsuit has already been filed even if in the wrong jurisdiction is the WRONG response and you KNOW It.  By all means mislead the OP that sending that letter will solve the problem.  Personally if it were me I would be filing the proper motion so that I had a legal basis for dismissal on appeal to use if they do get that judgment anyway.

 

That is what I like about all this. You see I am NOT advocating doing nothing but have given some real advice as to how to proceed moving forward. I have never pretended people do not owe but have bolstered them when debt collectors have used the extremely harassing technique of the "Litigation Priviledge". It is NOBLE of you to point this out.

 

As for the accounting errors happening all the time, I believe that the OP stated that they communicated with them about it and they said "Go ahead and cash it" by saying that they have stated that at that time they showed there was no error. So they cannot claim that they were being duplitious but "Relied" on the word of the agent of the school in keeping the money.

 

Personally, filing a Motion to Quash will make the OP's world rosier because the underlying lawsuit is not in the proper jurisdiction, and argueably as an agent of the state the school cannot really extend it's jurisdiction. As far as you attempting to paint me as a conspiracy nut, So what it is ironically a free country. I will let my actions in the past stand as a testament to my good will and nature. Let you do the same.

 

So I have to say all opinions are valued here, but for the record, I am never, ever "cowed".

[racecar]

Since this is with the Office Of The Attorney General. I don't think a pro se defendant with no experence is going to out lawyer an attorney that would have hundreds or thousands of these type of cases under his or her belt.

I would have a meet and confer with OAG.

You should at least communicate with them and tell them you think a mistake has been made that you don't owe the money because 'state reasons' Or you do owe the money and would like to pay back the refund at so much per month.

This way it gets over fast and easy.

out of 2739 posts I have only said that twice

[Seadragon]

It is entirely possible but the easiest way is to see where the case is filed and by who.  If the OAG is listed then it isn't a JDB portraying themselves as the state.  

 

Typically the ones who attempt to portray themselves do NOT file lawsuits alleging they are the OAG because that would get the OAG's attention REAL fast.  The goal of those masquerading is to get payment without going to court.  Although one did go to great lengths to rent space and set up a pseudo courtroom with baliffs and everything to scare debtors into paying.

 

The court docket will tell if it is a real case or not.

In the past debt collectors have made business names that mimic official agencies. It would be good to check to see if any business name of this is listed. There have been instances where jdb names have the same letters of a state agency. If the address is the same for the actual agency then you might be dealing with the state agency.

[racecar]

http://www.abajournal.com/news/article/debt_collectors_use_da_letterhead_with_permission_to_threaten_bad_check_wri/

Some are real agencies

More than 300 district attorney’s offices across the United States are partnering with debt collectors that use prosecutors’ letterhead to warn bad check writers of possible jail time.

The official-looking letters are sent without prosecutors’ review to possibly 1 million people a year, consumer lawyers estimate. DA’s office in Los Angeles, Baltimore and Detroit are among those partnering with debt collectors; the biggest players are CorrectiveSolutions of California and BounceBack of Missouri

[shellieh98]

 

clydesmom

 

 

There is one potential problem:  when they filed the first suit that tolled the SOL at that point until the date of dismissal.  So if it was filed on X date 2009 within the SOL and sat active but unpursued in court for two years then dismissed on Y date 2011, the SOL starts running again on the date of dismissal.  You need to find out from a lawyer how the statute of limitations will be applied.  

Because you went to school in NY and incurred the debt there the NY SOL is likely the one they will use even though they have to pursue you where you live now.

 

I was under the impression that when a SOL is tolled by a suit that is filed, when that suit is dismissed, it is if the SOL was never tolled.  Only if they reopen the same case that was dismissed and not a whole new suit does that apply.  Is that not correct?

[Clydesmom]

 I believe that the OP stated that they communicated with them about it and they said "Go ahead and cash it" 

Actually what he said in the first post is:

 

"In 2006 I received what is called a living expense check from this college, which is a refund that I am entitled to once all of my education costs have been met. This was sent to me directly and I cashed it."

 

It wasn't until I challenged that the debt was valid that he made the statement that they supposedly TOLD him to cash it.  The facts as he presented them are that he got the check in 2006 and in January of 2007 they told him it was an error and he owed money back to the school.  So if it was several months or more there is no way they told him months later to cash it.  I also doubt a college student waited months to cash a check.

 

The reason these errors used to happen is students had a certain amount of grant money from the government (and why it isn't a loan or scholarship) and the college would disburse the refund check based on anticipated funds.  Then if the amount received did not cover the refund the student has to pay it back.  This is one of the biggest reasons schools now divide up refunds throughout the semester so that if the amount of aid, scholarship, grant etc. varies they don't have to chase students to repay money they have already spent.  Schools may no longer disburse refunds the way they did in 2006.  

 

I am in school now and I get funds twice during the semester and the first check is not until the midpoint if I am due a refund on aid.

[Clydesmom]

http://www.abajournal.com/news/article/debt_collectors_use_da_letterhead_with_permission_to_threaten_bad_check_wri/

Some are real agencies

More than 300 district attorney’s offices across the United States are partnering with debt collectors that use prosecutors’ letterhead to warn bad check writers of possible jail time.

The official-looking letters are sent without prosecutors’ review to possibly 1 million people a year, consumer lawyers estimate. DA’s office in Los Angeles, Baltimore and Detroit are among those partnering with debt collectors; the biggest players are CorrectiveSolutions of California and BounceBack of Missouri

 

I did hear about that and apparently the DA's offices that are engaging in these alliances are taking a LOT of manure because of it.  Some states are cracking down on it because they don't want their prosecutors in the debt collection business.  Much of it was done to boost the budget during the recession when budgets got cut dramatically.

 

 

I was under the impression that when a SOL is tolled by a suit that is filed, when that suit is dismissed, it is if the SOL was never tolled.  Only if they reopen the same case that was dismissed and not a whole new suit does that apply.  Is that not correct?

 

There are WAY too many factors here to state what needs or has to happen.  This OP needs to consult a lawyer and find out exactly what kind of motion needs to be filed in answer to this suit and quickly.  It is very possible the SOL has expired but getting it wrong could be costly.  

 

There is statutory law, contract law, and state law in play in this case and it is going to take a lawyer to get it right and ensure that it does not come back to bite him in the behind again a couple of years from now.