collection agency $ due

What is the name of your state? CALIFORNIA

I have a bill from an electronics store, from about 5-6 years ago, that never got paid. Im guessing the account has been "sold"
to a collection agency. Although the charges were originally only about $1500 total, the amount due is now up to about $2700.
Three years ago I joined a debt managment program, and after working two jobs and much hard work, I am about 6 months away from being debt free (or so I thought!) The problem is, I have now been served a summons to appear in court for this debt. I have called the credit agency, and of coarse they want the full amount, or at least half the amount now. I cannot come up with this lump sum. After offering to pay what I thought I could afford, and them saying no, I am now losing sleep over finding out how to resolve this. I do not have a lawyer. I would love to avoid going to court, and all the additonal fees associated with that. These people are so hard to work with, and I end up in tears after trying to work with them on the phone. Help!

[JETX]

Sorry, but assuming that the debt is valid... and that the SOL (Statute of Limitations) hasn't expired, there really isn't much that any of us can offer to forego the creditor trying to collect his money. After all, you did receive the benefit of whatever you purchased..... the merchant just wants to be repaid as you promised.

Simply, your options are:
1) Negotiate a payment plan or settlement, and failing that
2) Appear in court, try to defend yourself (if any) and be prepared for a judgment to be rendered against you.

And you are correct, the costs of going to court, etc. will probably increase any claimed owed amount.... and will allow the judgment creditor to enforce the judgment per your states laws. This could include wage garnishment, asset seizure and liens.

thank you for your response, how would I find out if the SOL has expired on this debt? I do not have a problem paying back debt that Ive incurred, just having a hard time reaching a payment plan we are both able to accept!

[Ladynred]

Whether the SOL has expired is determined by when you last made a payment on the account. The SOL in CA is 4 years, so if you've NEVER paid and the account is 5-6 years old, then its quite possible the SOL has expired. Do you have anything that shows when the last payment, if any, was made ? Your credit report should show a 'date of last activity', if it is beyond the SOL time, that would be your proof in court. You have to appear at the court date and use the expired SOL as your defense and the case would be dismissed.

[JETX]

Actually, the SOL is dependent on the type of debt. In California:
Open Acct.: Reduced to writing- 4 years
Open Acct.: No writing- 2 years
Written Contract: 4 years

Also, realize that there are some real 'scum-sucking, bottom-feeding' collection agencies out there that will purchase old, expired debt (with full knowledge of it being DOA) and then make demands on the debtor. And the debtor, having NO knowledge that the debt was expired (by the SOL) will either negotiate some settlement or make arrangements to pay (thereby, resetting the SOL 'clock').

All in all, a pretty scummy way of making a living!!

JETX thank you so much for your reply! Im not sure I understand the 2 and 4 year thing... Of coarse the most current credit report I have is from last year, but the account in question, was opened in 1997, and it says it was "charged off" as of 2-1999
The amount at that point was $1727.00, and has now escalated to around $2600. I am just sorry, it has gone this far. It was a written contract (credit card debt) agreement, so does that mean 4 years from when I opened the account? Sorry, I have never been in this situation and must sound pretty ignorant!

[JETX]

A credit card account (open account, in writing) would have a four year liability. The the SOL 'clock' started at your last 'activity' date, usually payment.

So, the key here is when was the last payment made??? Then, add four years to that.... to get your 'expiration date'.

(Assuming a 'charge off' of the typical 180 days after default, it would appear that your default was probably around Sep 1998. If correct, then you are close to its death.... around Sep 2002. This is close enough to start looking through your records to see when the last payment was made..... and/or to ask the debt collector to 'validate' the debt as allowed by the FDCPA - Fair Debt Collection Practices Act at: [url]http://www.ftc.gov/[/url] )

Don't misunderstand, the 'expiration' date doesn't automatically close the debt.... it only means that it is unenforcable after that date. If a collector contacts you in the future, you can just ignore it. If a collector files a lawsuit against you, you can get it dismissed due to expiration. And the debt 'history' can show on your credit file for 7 years.

Thanks again for your reply Halket. Since the original creditor, seems to be out of the picture, and has "sold" the account to
this collection agency, the last payment date sounds tricky. I have been working on this nonstop for the last 3 days. The experian credit report I have, does not show when the last payment was made. I doubt by contacting the original creditor they would be able or be willing to help me with this information.
Any advice on finding this out? I could order another more up to date credit report online?

[Ladynred]

Try checking the other 2 credit reports, TransUnion and Equifax, they may have the last activity date. As far as the last payment date, it doesn't matter WHO you paid, just WHEN, so the fact that its been sold to a CA doesn't matter at all.

You can order credit reports from all 3 on-line, just stay away from the 'consolidated' reports, they tend to leave things out.

Thanks for your reply ladynred. I have never paid the collection agency, so the last payment would have been to the original creditor. I will try ordering instant credit reports online, and get the info that way? It seems like the 4 year mark is just about up, but maybe that is why im being sued now - because they know that.

[Ladynred]

But ARE they actually suing you or just threatening ??? IF they are actually suing, you would have been served papers and you'd have a court date. If that is not the case, then they are rattling your cage to scare you.

If you have NOT been served, immediately send them a validation demand letter. This will stop ALL collection activity for at least 30 days from their receipt of your demand letter. Basically this is forcing them to PROVE that they have the right to collect from you and it will give you some time to find the records you need or at least stall until the SOL DOES run out.

Hop on over to [url]www.creditnet.com,[/url] register (its free) and then look under the Discussions tab for sample validation letters. Send it out ASAP, certified, return receipt requested. By law the MUST validate w/in 30 days of receiving your letter.

Next go to [url]www.creditinfocenter.com[/url] and read about debt validation, they have a great section in it, explains the whole process and they also have some sample letters, though I've found the samples at creditnet to be much better.

Hope this helps

Hi again Ladynred - problem is, I have been served a summons and I DO have a court date on the paper set for September, so this is not just a threat. This is why I am freaking out, I have never had anything like this happen, and this is my only outstanding debt - why I thought it would just "go away" is beyond me. A huge mistake on my part. So, that is why Im trying to avoid going to court.

[Ladynred]

Ok.. so they ARE suing you. You can do 3 things. First, calm down. I understand the freak-out, but you may be able to beat this yet Second, make every effort to find out when the last payment was made to this account. If the SOL has run out, even up to the point of the court date, you can STILL use the SOL as your defense and have it dismissed on that basis. So, dig, dig, dig, for that information. Its a pain, I know... been there..

Third, you can ask that the court date be rescheduled one time. I would wait until a few days before the court date, call the court and ask for a reschedule, it is your right to do so. If they ask, and I don't know if they will, I'd just tell them that you can't get off from work on that day. That should buy you some additional time.

Lastly, no matter what, you can't blow off this court date. If you don't appear, then they will win by default. If the SOL has run out you MUST go to court and cite the expired SOL as your defense. If it hasn't run out yet, at least if you go, you have some chance to defend yourself and the creditor might extend a settlement offer or a payment plan instead of going for the judgment.

[JETX]

Ladynred said, "Second, make every effort to find out when the last payment was made to this account. If the SOL has run out, even up to the point of the court date, you can STILL use the SOL as your defense and have it dismissed on that basis."

Sorry, but that is not correct. The critical date is the date of filing. If the SOL was valid on the date the case was filed, it is a valid debt.

[Ladynred]

Oops... sorry Bearchaser

Thanks JETX... but Bearchaser should still find out when the last payment was made just to know where it stands, the SOL could already be up.