Old Calif. credit card debt

I hope IAAL answers this as he/she appears quite knowledgable.

In 1988 I lived in CA and had several credit cards. I was laid off in Aug '88 and made my last payments that month or perhaps Sep '88.

I received several collection notices (from agencies and issuers) over the years, but did not respond or pay. I lived at the same address until 1993, then moved out of state. I was never served with any papers about lawsuits.
I did not hear from any collection agencies after 1993. I saw my TRW credit report (incidentally, I had been laid off from TRWs credit reporting unit) in 1995 and there were no collection or charge off entries, in fact nothing but a department store card, which I had never used so it never went bad.

Q: I now live in OR. I received a letter from a collection agency this week about one of the cards. I believe the SOL on all of the debts has expired but need to know if this is true?

If the SOL has expired, should I respond to this notice (it was sent regular mail, i.e. not Certified, Return Receipt), or should I ignore it?

If I should respond, just how should I do so? I am tempted to send a letter stating the debt is legally uncollectable, and that any further attempts by them will be harassment and that I will seek legal help in that case. I sense that I should also warn them about posting any negative entries to my current, good, credit report.

Thank You

[I AM ALWAYS LIABLE]

Originally posted by jmsull
I hope IAAL answers this as he/she appears quite knowledgable.

In 1988 I lived in CA and had several credit cards. I was laid off in Aug '88 and made my last payments that month or perhaps Sep '88.

I received several collection notices (from agencies and issuers) over the years, but did not respond or pay. I lived at the same address until 1993, then moved out of state. I was never served with any papers about lawsuits.
I did not hear from any collection agencies after 1993. I saw my TRW credit report (incidentally, I had been laid off from TRWs credit reporting unit) in 1995 and there were no collection or charge off entries, in fact nothing but a department store card, which I had never used so it never went bad.

Q: I now live in OR. I received a letter from a collection agency this week about one of the cards. I believe the SOL on all of the debts has expired but need to know if this is true?

If the SOL has expired, should I respond to this notice (it was sent regular mail, i.e. not Certified, Return Receipt), or should I ignore it?

If I should respond, just how should I do so? I am tempted to send a letter stating the debt is legally uncollectable, and that any further attempts by them will be harassment and that I will seek legal help in that case. I sense that I should also warn them about posting any negative entries to my current, good, credit report.

Thank You

My response:

Thanks for that very nice (and accurate) compliment.

California's Statute of Limitations on "Open-ended" accounts; e.g., credit cards, is 4 years from the date of last payment. As you now know, after that period of time has expired, those debts are legally uncollectible.

But, don't just rest on those laurels - - you've got to become proactive about this. You see, Collection Agencies are in the business of recovering money, and they do so with the distinct hope that their "targets" don't know the law. Since they know the Statutory time limits, they're hoping that you don't, and will pay something toward the debt in order to start the Statute "clock" all over again. That way, if you do pay something, they can then take you to court and win their lawsuit.

But, because you now know the law, you won't be taken for a "sap". Your last paragraph is very telling of your intelligence in this matter; that you already know that something needs to be done. You are absolutely correct. So, within the first 30 days from your receipt of their collection letter, you need to send a Certified Return Receipt letter to them denying and disputing the debt. But, in order for you to do this properly, you're going to need to read, and understand, the Federal Fair Debt Collections Practices Act. Run a search for it on the Internet. Read it thoroughly and do as it says. You'll also know exactly what they can do, and what they cannot do.

You're basically off the hook, but you've got to be proactice about this and let them know that you know, and that you are demanding all proofs of their claims, and that they shall stop all collection activities.

Have a pleasant day.

IAAL

[Edited by I AM ALWAYS LIABLE on 01-19-2001 at 06:02 PM]

Thank you IAAL for your response. At the time I posted my question I did not know your occupation, but now that I checked your profile, I see that you do indeed know of which you speak.

I have contacted an attorney in CA and will have him send a letter to the collection agency. I will ask the attorney to include your advice regarding disputing the bill, requesting proofs, etc.

Again, thank you.

John Sullivan