Expert: Ray A Miller - 1/18/2011

Question
I subscribe to a credit monitoring service, last month I received a notice of activity on my account. I checked it out and TXU Energy filed a bad debt claim against me. I contacted TXU and after the 3rd time contacting them they came up with a story that in Nov 2002 I didn't pay my bill, so they are filing it on me now. (This was the 3rd story I received, 1 was that it was a fraudulent account and 1 was that it was a debt of from 2003). Well this is their final story, so I am disputing it. I've asked them to provide me with proof that this is my debt (old bills) and proof of my payments or where this debt came from. They said their systems didn't go back that far, but I needed to provide proof I paid them.

My questions are: 1) can they even do this? 2) isn't there some time frame after which they can't file a bad debt against me? 3) can they write off a debt from 8+ years ago and file it now? 4) shouldn't they have to prove the debt is mine, not the other way around? 5) don't they have to contact me before they can file a bad debt against me? In 8+ years I have never heard from them much less received anything regarding a debt.

I've filed disputes with all 3 credit bureaus & with TXU but this has already hit my credit dropping my score almost 70 points. Is there anything else I can or should do?

If it matters I live in Texas.

Thank You

Answer
Since you have disputed it with the credit bureaus, TXU will have to provide verification of the debt.  You may want to mention to the credit bureaus that the account is over 7 years old and no longer qualifies to be placed on your credit.  I hope you find this information helpful.