Expert: Ray A Miller - 12/28/2008

Question
QUESTION: Hello thanks for the wonderful site.My ? is that I had service with T-Mobil Wireless over three years ago.In the state of Arizona.I transferred my service from them to cingular wireless.I did not pay the final bill with T-mobil and never heard fro them.I still have that sae phone number today with Cingular now ATT.I received a collections letter from Law Offices of Mitchell N. Kay out of New York saying I owed T-Mobil $ 1500.00 and they would settle with me for $738.00.This collections has never been on any of my credit reports ever.Does the 2year law thing apply to me? What should I do as I'm trying to purchase a home in the next five months and don't need any new collections on my credit????

ANSWER: Unfortunately, when you move to a new area, most wireless companies will sign you to a new contract even though you get to keep the same number.  Call this attorney and see what the real fact are before being concerned about your credit.  Usually, if you stay in touch, these companies will work with you because they want to keep your business.  You may have to pay the amount due since you do state you did not pay your final bill with T-Mobile.  The $1500.00 they say you owe may all up to being a clerical error since you kept your phone service and just switched areas.  The MAIN thing for you to do is to stay in touch and make some type arrangement so that this will not hit your credit.  As you know, every hit cost you, not only in interest, but on your insurance, the ability to get a job and/or an apartment.  I wish you good luck with this and a Happy New Year and hope you have found this to be helpful.

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QUESTION: wow thanks for the intant feedback.This website is a blessing.I did not move to a new area have always lived in arizona just went from one cell phone company to another.I just never paid my contract buy out fee.I'm a single parent of five children with limited income and just about have my credit score high enough to hopefully qualify for a home loan.I don't have extra monies to pay any debts right now.Do you think it would be wise to have the company verify the debt first then go from there? In arizona can I still be  sued for a cell phone if its over two years old? Sued or it placed on my credit ? I thought I read on this site if its two years you don't have to pay it.I'm now confused!!!!

ANSWER: The SOL laws in AZ are as follows (as of today): Injury to Person   False imprisonment; 1 yr. §12-541; if not 2 yrs. §12-542
Libel/Slander   1 yr. §12-541
Fraud   3 yrs. §12-543(3)
Injury to Personal Property   2 yrs. §12-542
Professional Malpractice   Medical: 2 yrs. §12-542
Trespass   2 yrs. §12-542(3)
Collection of Rents   -
Contracts   Written: 6 yrs. §12-548; Oral (for indebtedness): 3 yrs. §12-543(1)
Collection of Debt on Account   3 yrs. §12-543(2)
Judgments   4 yrs. foreign judgment §12-544(3)

The one on collections is the one you would be interested in.  The two year time period you are referring to is the time you have to keep the contract and not owe a termination fee.  Certainly you should validate the debt.  I still strongly suggest you contact this attorney and stay in touch so your credit may be protected.  DO NOT tell them you are buying a house as this will cause them to speed up the process.  My advice is for everyone to pay their bills.  This is not always possible, especially to pay the balance in full.  See what you can work out.  I am sure they will want to work with you because you are still a current customer and future income trumps a past due account.

Please remember to leave feed back on my advice and if I may be of further assistance, please send a follow up question.

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QUESTION: Again thanks for the reply.I'm sorry to still be on the same topic.But I want to make sure I fully understand your response.The SOL for Az is 3years for a collection.So if thats the case doesen't that mean they can't place it on my credit?Let alone try to sue me? I have no problem paying debts that I owe.I don't have the monies available at present for stuff that is not and has never been on my credit.So I guess the answer I'm looking for is can they still place this on my credit report or still sue me? The collection company has no proof that I even recieved the notice.I'm afraid If i inquire about it .That it will reopen this debt.

Answer
The SOL only means that three years from the date of delinquency, the creditor is barred from taking any legal measures to collect a debt including placing the debt on your credit.  If it ever shows up there, dispute it.  

Make sure you know when the date of delinquency is; that is what drives this entire process.

Good luck with this and Happy New Year!