Expert: Michael Brotherton - 6/19/2007

Question
QUESTION: Hello Michael,

Apparently, I have received a summons for an old credit card debt.  The reason I say apparently is because I haven't lived in the country for almost 5 years.  Basically, the credit card I received in 2000.  I honestly don't remember when the last activity was, so I can't tell if I hit the statute of limitations.  

I am originally from California, but in the summer of 2002, I was transferred to our Tokyo office and I have been here ever since.  I am no longer a resident of California.  

The collection agency has been sending notices to my mother's address (where I have never lived) and she's been tossing them.  Recently, she contacted me to let me know that I've been summoned.  She has tried repeatedly to notify the credit agency that I do not live here, but they have ignored her and continued to send everything to that address.

As you can imagine, it is very difficult for me to handle this from so far away.  Is there any way I can get out of this or do I have any kind of an upper hand to negotiate directly with the collection agency?

Thanks very much,

Serge

ANSWER: She should return mail to sender noting "not at this address". She may also send them a certified letter demanding they remove her address and phone numbers from the record.

As to the summons. The worse that can happen here is they get a default judgment. If you don't have any assets they can locate they cannot execute that judgment. The account will continue to accumulate interest and fees so if you plan on moving back to the states you may want to make payment arrangement or offer a settlement to resolve the issue. They don't have many options, the debt is virtually uncollectible.

The judgment has extended the statute of limitations. Your best bet is to negotiate and pay the debt. It could come back to haunt you many years hence.

---------- FOLLOW-UP ----------

QUESTION: Thank you, Michael!  Two questions.  Don't they have to serve me for the summons to be legit?  I mean, if I'm not in the country, can I be served?  When you say I should negotiate to pay the debt, do you mean with the collection agency or with the courts?

Thanks again!

Answer
They will routinely publish the suit in the paper which is a public notice. This is usually sufficient to satisfy the legal requirements. They only need to make a reasonable attempt to serve you and give you time to respond. Negotiate with the collection attorney or the original creditor.