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Collections Law/Open Credit Vs. Written Agreement

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Expert: Michael Brotherton - 8/4/2007


Question
Hello Michael,

I am a resident of WA State, have never moved or applied for credit in another state and am facing a collection letter from Midland Capital Management, who purchased a debt they claim I owe originally held by First Consumers National Bank.

There seems to be much debate surrounding whether credit card debt in WA State is considered Open Credit, subject to the 3-year SOL, or as a Written Agreement falling under the 6-year SOL.

My question is, are collection agencies SUCCESSFULLY arguing IN COURT that credit card debt is a "Written Agreement", thus falling under the longer SOL term?  

My plan is to dispute the validity of the claim and request full validation, and if possible, fall back on the expiration of SOL as 3-years in the State of WA if applicable to this credit card.

Thanks in advance for your advice,
Jon

Answer
Although each state is free to define these types issues they usually follow precedence from other states. Credit cards fall under "open account" category, period. I know of no cases where creditors have argued and won a case such as this. You definitely want to dispute this debt based on the SOL for WA state.

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Michael Brotherton

Expertise

Consumer/Debtor Rights Advocate. Mike Brotherton is a negotiator with over 30 years experience in consumer lending and collections. Mike has 30 years in the credit and collections industry as a former loan officer, debt collector and manager of two finance companies over several years. Mike is well versed in Loss Mitigation practices and the legal collection process. He has helped literally thousands of people over many years overcome serious financial problems such as foreclosure, creditor lawsuits and abuse by debt collectors. For more information about resolving your "financial emergency" visit www.financialemergency.com. FinancialEmergency.com is a consumer web site which actively promotes Fair Debt Collection Practices and other consumer protection laws. We teach DEBTOR RIGHTS and enforcement of those rights. The more informed you are of your rights and the credit collections practices of creditors the more peace you can have dealing with your FINANCIAL EMERGENCY. Most financial problems are fairly common and as such have some very common solutions. The key is understanding your rights in the collection process and how to enforce them if need be. Primary business- Debtor Rights Advocacy and Debt Mitigation relating to foreclosure, creditor lawsuits, and other serious financial problems. www.financialemergency.com (copy and paste in browser).

Experience

Over 40 years combined experience negotiating disputes and resolving financial issues related to consumer debt, corporate issues and mortgage modifications.

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