Expert: Creditwrench - 1/11/2009

Question
QUESTION: When I was in college I had several credit cards that I was unable to pay off.  The credit card was opened in 1997 and closed by the credit card company in 2002.  A couple years ago I was trying to repair my credit and make arrangements to pay off old debts.  I made the last payment May of 2007.  Since that date this outstanding debt has fallen off of my credit and is no longer showing even in the History.  I just recieved a civil summons and have to respond by the 2 week in January.  They want me to pay the agreed settlement of $953.  Since this has fallen off of my credit am I still obligated to pay this?  I was told in the state of North Carolina that there is a statute of limitations for outstanding debt collections of 2 years.  I am not sure if this is correct.  I want to know my rights before I move forward.

ANSWER: Statute of limitations for NC appears to be 3 years. Did you also make payments on this debt in a futile attempt to clear it up? If so who did you pay it to?




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QUESTION: The supporting documents they sent with the civil summons was the statement from the credit card company back in 2002.  They didn't provide any document that was an agreement between me and them.  I am unsure what to do now.

Answer
I can't advise you or tell you what to do because I'm not an attorney but what I would do is quite simple. I would file a motion to dismiss and file that as my response to the court. I'd also prepare an order of the court, a notice of hearing and certificate of mailing. I'd also prepare and send the plaintiff a nice list of about 45 demands for admissions and depending on how long ago their attorney made his initial contact with me by whatever means I might well also send a demand for validation of the debt they claim I owe. Then I would call up my local federal court clerk and ask for a cover sheet and a copy of the local rules of procedure. Then I would prepare my compliant based on the fact that they misrepresented the legal status of the debt. I'd sue them in federal court. I'd win easily and probably in both courts. I'd make them pay me well for my time and trouble they caused me. You see, there is a statute of limitations in every state that says that after a certain period of time has elapsed between the time I made my last payment to the original creditor and the time they filed the case then the court cannot grant their motion if you provide the proper defense.