Expert: Regan Shinski - 9/29/2009

Question
Hi,  My question is this.  Can a company sell my debt to a collection agency right before my 7 years is up?  The date of service was July 2003.  The collection agency bought it in March 2009.  I've been clearing my credit since last year when I bought a house, but I don't think I should bother with this one because it is so old and I am without a job right now.  I told the collection agency that I would not pay this debt and not to contact me anymore.  She stated that they would continue to contact me until the debt is paid no matter what.  What should and can I do?

Answer
First of all, don't talk to them on the phone unless it is LEGALLY advantageous to you :)

To answer your question, yes they can sell it.  In fact this company can sell it 20 years from now if they want to and can find a buyer.  That doesn't mean they can COLLECT it or REPORT IT to the credit bureaus.

Did you receive their Dunning letter?  This is usually the first letter they send you and has a comment like "If you do not respond to this letter within 30 days of receiving it we will assume the debt is valid."  You should still respond to this.  Send a certified letter asking for validation under the Fair Debt Collection Practices Act (FDCPA).  In the letter also state that you want all future communications to be in writing.  This will basically prevent them from calling you.

The date it and all relevant accounts should be deleted from your credit reports is basically seven years (sometimes 7.5 years) from the date of first delinquency.  This is the date the account became 30 days late and was never caught up again.  For medical, it's usually the date of medical treatment.  Sometime chargeoff dates play a part in this.

You should also find out the statute of limitations in your state for this type of debt.  If it is beyond the statute of limitations they cannot collect it.  They can keep trying but you now have an affirmative legal defense, meaning they cannot get a judgement on you.  This is why most can't find a buyer for the debt after that statutory date has passed and why most give up trying to collect.  They can still send letters, call (if you don't send cease and desist letter as described above), even potentially file a lawsuit but you can basically tell them to take a flying legal leap.

BTW, I don't think you should not "bother with this one" as you said.  Especially if it is past the statute of limitations.  Sometimes these are the easier to get deleted through professional credit repair, but the choice is yours.

Good luck, I hope this helps and let me know if you need anything else or if I can help you with your continued credit repair.

Regan
mbscompany@aim.com
813-454-1459