Expert: Michael Brotherton - 5/3/2007

Question
Hello ,

I was contacted yesterday from a debt collector called AAC , they were calling to collect a debt from SBC

phone company , the debt is now 7 years old and was caused by my ex-wife who ran up a $500.00 long distance bill calling the person she was seeing behind my back. She was obligated by our divorce decree to pay off this debt but of course I've seen very little from her.

Anyhow when I spoke to the representive from AAC I informed her that the statue of limitations has run out

on the debt(at least as of last year it was 7 years). I was informed that its 15 years in the state of Ohio. I did some further checking and it is indeed now 15 years ! This must have recently changed because I know last year it was 7 years because I was being harassed by another debt collector and got them to cease and desist because of the statue if limitations' law in Ohio. I have disputed the debt because now they are coming after me for $1000.00 instead of the original $500.00. I believe they are contacting me now because the debt is getting ready to drop off my credit report , plus since its 7 years old I'm afraid if I try to settle the debt it will hurt my credit score and I'm not the one the incurred the debt to begin with!!! From what I've read I believe they don't have too much legal recourse as far as seeking a judgment or trying to garnish my wages but I'm wondering

how should I persue this??

Thanks for your help!  

Answer
You are correct about the statute of limitation being 15 years. IF you disputed the debt they should have provided you with proof it is a vaild debt. It is questionable whether a settlement would damage your credit although it is possible that it would be reported. I would put a settlement proposal in writing and make it a condition of the settlement that they DO NOT REPORT THE ITEM TO THE CREDIT BUREAU. Most collection agencies could care less about your credit, they just want the money. Aim low on the settlement and make sure you get a confirmation letter from them before sending money. If the settlement is approved, do not pay by "check by phone" or direct debit. Money order only.

I wish you luck.