About Melissa Douros Expertise I am able to answer questions relating to dealing with collection agencies, starting collection agencies, starting businesses, and networking for business matters. I cannot answer questions on how will something improve my credit score.
Experience I have eight years in the collections industry including owning my own collection agency. I am also agent represented in two books on the subject matter.
Publications Helium, FastCompany, and Ezine.
Education/Credentials I have a Bachelor's Degree in French and Communication, eight years in the collections industry and currently own a collection agency.
Collections Law - SOL for North Carolina regarding debt coll.
Expert: Melissa Douros - 11/23/2008
Question QUESTION: I received a phone call out of the blue from Hall & Associates in New York regarding an old account with Columbia House - they say that I owe $234.31. I was so shocked by the amount that I repeated the amount back to the man who, said this was for an account I opened in 2004, he said that the interest has been building on the account since 2004. He did not offer to give me a breakdown of the initial amount owed and how much "interest" had accrued, nor did I ask, as I was positively floored by the phone call! I may have owed them something, but nowhere near that. This has never appeared on my credit report. I have never received anything from them (Hall & Associates) in writing. There are several entries on the internet about them with people saying they have been contacted by them about old BMG/Columbia House debts as well as trying to collect on "bad checks" written years ago. I could not believe what I was seeing. Apparently, a Consumer Advocate named Clark Howard says they are "zombie-debt collectors" Although many posters said they were very rude and threatening, the man I spoke with did not act like that. One poster actually said that they are not really lawyers. I should have asked more questions, I was caught completely off guard and was concerned that a "law firm" was calling me. Three years ago, I was virtually drowning in debt, and in desperation, I stopped paying five different accounts (all of these were credit card accounts, not Visa or MasterCard) and I still have several accounts that I have never made a late payment on and they are in good standing) I have recently made good on these delinquent accounts. Could this have made me a target for this particular debt collector? In other words, could they have uncovered information that I have "settled" these old debts, and have decided to try their luck? If this debt is from 2004,(I am honestly NOT certain about the year, and feel it could be older than this) as they claim, do I have to pay this under the North Carolina statute of limitations? What exactly is the time limit for a debt of this nature in my state? Lastly, Is there any likelihood that they could try to take me to court, or are they just fishing?
ANSWER: There is a chance the collection agency recently purchased the debt and that is why they have just begun attempting to collect on it.
The SOL has expired for this debt and therefore you can request the collection agency to "cease and desist" all communication with you. Explain that you are aware of your rights and the SOL in a written letter. Chances are they will let go of the debt. The SOL does not mean that you do not owe the money, it merely means that they cannot sue you or place the account on your credit.
The debt is so small, they probably would not take you to court, as it would cost them more just to file the claim. If they do end up doing this, you would just tell the judge the SOL has expired and the case would be dismissed.
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QUESTION: Thank you for your response. One other question - As I mentioned, I was caught so off guard by the phone call from this agency, I took down their mailing address, the amount they said I owed and the file number (they said that they did not accept personal checks) and advised me about doing a payment through western union or said that I could send a money order or a registered check (purchased from my bank) I wrote down all this information and read it back to him to verify it was correct and then said okay. If they thought it was my intention to pay them would that change anything? I believe I saw something about this a couple of years ago on a local TV station - where they said that if it is an old debt (such as this one) if you actually made a payment - it could change the dates and you could be held liable (legally). Is there any truth to this as it applies to my state of North Carolina? Do you think that if I just ignored them, they would figure that I wasn't going to pay them and not contact me again?
Answer Pamela, you absolutely correct about the date being changed, but that would only pertain to your credit report.
For example, if a debt had been placed on your credit report and was done so 6 years ago and then paid, the debt would remain on your credit report for an additional 7 years.
Fortunately, nothing that you have done will change anything. I would not ignore it though. I would send the letter explaining that you know of the SOL and to cease and desist contact with you. It will let them know that taking you to court would be a waste of their time.
