Expert: Regan Shinski - 12/4/2010

Question
Much like you, I some serious health issues years ago. The finance company for my car refused to work out a payment plan. I had already repaid the original amount I borrowed and some high interest. I told the company if they could not work with me to come and get the car, which was in serious disrepair anyway. They sent two representatives who quickly saw I WAS in poor health, and the car was in worse health. They opted to write it off.

Many, many years later, I have stellar credit. Never miss a payment of any kind. After I bought a house last year, I was contacted by a collection agency that identified itself as a "retirement company." They bought this ancient account, supposedly. They claim I now owe a few thousand in interest (which is as much as the original loan.) which they would consider settling "for a short while." In writing I requested-twice- for written evidence of the balance of any account. It has been so long that I honestly don't have a clue how much I would even owe without the interest. They will only send the original contract copy and no payment history. I'm not paying or settling anything with any strangers until I get that verification. I don't have any reason to trust the numbers they have , especially since they purposely misidentified themselves.I have promised nothing verbally or in writing. I continue to get phone messages (on a unlisted number). I'm not talking to them or corresponding any more.

What's the best way to be fair with a past debt and get these people to go away?

Thanks!

Don

Answer
Hello Don:

Well, the first thing you need to find out is if the debt is within the statute of limitations.  Based on your comments, I would say it is not but I don't know how long "ancient" is :)

If the debt is beyond the statute of limitations (SOL) you simply need to send them a letter advising it is beyond the SOL and you have no intention of paying this alleged debt.  You can also include a comment to have all future communications sent to you in writing.  Include your proper address in case they try and sue you anyway.  It then essentially becomes illegal for them to call you.  If they sue you for a deb beyond the SOL, you still need to reply.  You show and and show the debt to be beyond the SOL and you win the case.  Do NOT enter into any new agreement or make any partial payments.  This can restart the SOL and make you liable for the entire debt down the line.

If it is NOT beyond the SOL, it's an entirely different and more complicated matter.  Contact me again with the date details if it is within the SOL.  You can still send them a certified letter asking for all future communication to be in writing.  This will at least stop the calls.

Good luck, I hope this helps.

Regan

www.ficofighter.com