Expert: Ontrack Financial Group llc - 5/5/2010

Question
I had a debt from navy fed credit union that was charged off feb 2003....have been contacted several times from a collection agency...but am unable to pay it plus don't feel real good about throwing good money at bad money. But just last week, received a call from an attorney that the agency has regarding my past debt. They basically made statements that they were pursuing the debt, and that a case was being made against me and it could lead to a possible garnishment of my wages.  I was at work on my cell phone and kinda stressed about this and they kept on with the scare tactics which got me...I am new at my work and dont wont to lose my job. so I told them I wasn't sure I could do the payment arrangements that they were wanting but convinced me to give them my debit card info.  I told them what I could afford but I still wasn't totally sure about it and wanted to wait til I got home and looked over my finances but they got me good.  Well they said they needed that information to set something up, but that they would contact me the following week to confirm but they never contacted me.  So I then went to HR and talked about it to them and was really concerned and they asked a few questions which then made me think...the charge off was feb 2003 and the SOL in both states were 5 years for written contracts from my understanding.  I assumed it was charged off.  Now that debt was in North Carolina and now i am in florida.  Not sure how to interupt the statute of limitations as to my debt.  When I got home and over the weekend I realized that there was no way that I could commit to what they wanted so I cancelled the future payment.  I then requested my credit reports from the 3 agencies and then it really confused me, I couldn't find the debt for the specific amount that they were talking about so then I really was confused as to what was going on.  I know that years ago I had some delinquent debt for that bank and just assumed it was that.  but the other debts that I had were gone from my credit report.  Could really use some guidance.

Answer
Dear Michael,

Thank you for your question.  

The statue of limitation in North Carolina is 3 years. The debt was probably purchased by a debt buyer who is now trying to collect this old debt.  

The problem for them, they can't legally pursue you since the statue of limitation has expired.  If the debt collector has told you they will "come after you" they broke the law and should be sued.

If you need further assistance please contact us at

www.OntrackFinancialGroup.com