Expert: Regan Shinski - 5/26/2010

Question
Good Morning,

First let me provide some background.  In 1996 I had a personal loan in CA.  I was irresponsible with this loan, and I just let it go since I joined the military that year.  After a few years (1999), I tried to contact the company to pay the debt to get it off of my credit report.  I could not find them.  Eventually, I learned that they were not in business anymore.

After the seven years, it came of of my credit report, as it should since there was no activity.  That part, I understand.

Now, here is what is prompting my question.  Just the other day, I was contacted by a lady named Emily Johnson who works for Marauder.  She informed me that I was facing a judgement and that my wages could be garnished.  This is now 14 years after I made the loan, and 7 years after it had no activity.  In addition, I know that the statute of limitations is 6 years for a written contract in the state of CA (Where the loan originated); and, it is also 6 years in NY, where I live now.

My question is do I actually owe this money or is this a scam.  I think that this is a scam!  Please provide any insight!

Respectfully,
Dave

Answer
Hello Dave:

I am answering this question ONLY based on the information you provided and am assuming what you have written is accurate - especially regarding the fact that this debt is outside the SOL.

So... if it is outside the SOL, you have an affirmative defense to the debt.  What that means is the debt holder - a collection agency in this case - can still TRY to collect on the debt.  This includes their legal right to file a lawsuit and get a judgement against you.  However, all you have to do is show up and show the debt is outside the SOL and it will be dismissed.

I would send a certified letter to the collection agency asking for validation under the FDCPA.  More importantly, in the letter say you want all future communication with them to be in writing and provide the correct address you want to receive mail at.  Write that you know it is outside the SOL.  What you don't want is to get a surprise judgement against you because you were not properly served or notified of a pending court case.  Then, if you didn't show up - because you didn't know about it - you could get a default judgement against you.  Send the letter, put them on notice that you know it is outside the SOL, tell them not to call you (they legally can't after receiving that letter), and say you want all communication to come to you in writing to your address.  This should likely stop them in their tracks.

Good luck,
Regan