question on credit card collections I don't owe

What is the name of your state? Oklahoma
Eight years ago I secured a credit card for my business. I sold my company in 1996 to an individual who said he would like to keep the card. I wrote Wells Fargo a letter telling them I was selling my business and that the new owner would be responsible for any purchases made past the date of sale and that under no circumstances would I be held liable for any charges and that my name should be removed from the account. At the time I sold my business I had a zero balance on the card. Two years later I got a phone call from Wells Fargo telling me I owed $8,000 and when could they receive payment. I said I had not been responsible for that account since I sold the business and THEY said "oh you mean to Mr. John Doe?" (the name of the man who bought my company). They said they'd try and track him down. A year later I got a call from a collection agency representing Wells Fargo. Long story short (too late) I hired an attorney to represent me. Some letters here and there and they went away. That is until a different collection agency popped up a year. This has happened with 3 or 4 collection agencies since 1998--I just received the most recent today. My question is, do I have to keep siccing my attorney on these dweebs or should I just let it go? It's never been a factor on our credit rating and I hate having to pay $300 plus dollars every time these collection agencies pop up. Isn't there some kind of statute of limitations on this? My attorney assures me I am in the clear should this ever get to court...but no one ever takes it that far because it's obvious from the paper trail that Wells Fargo screwed up.
What should I do? I'd ask my lawyer, but I'd rather not be charged any more money regarding this if I don't have to.

[JETX]

Hold on a minute.... something is CLEARLY wrong here!!!

When you got this card, did you sign the application??? If so, you can't just 'quit' the card obligation or transfer the liability to another simply by sending them a letter. Your name is likely still on the account as the responsible party. And I doubt that any letters from your attorney changed that. And if you believe that your not liable since it was a 'company account', I would almost bet that you had to sign a 'personal guarantee' when you got the card.

You need to take this issue seriously and start finding out the FACTS of the account. Like, is your name still on it?? Did the card issuer ever relieve you of liability in WRITING?? Did they ever confirm accepting of your 'not me' letter and agree to it?? If no to the above, you are on the hook.

Pay the debt, cancel the card then YOU have to sue the guy that YOU handed the card (and credit) over to.

[bigun]

Given the dates you provide, it looks like the SOL has run for Ok.
Sounds like the CA's knew that and figured your lawyer did as well and backed down. Credit cards are open accounts.

STATE: OKLAHOMA
INTEREST RATE

Legal: 6%
Judgment: 4% over U.S. Treasury Bill Rate of previous year. (1996 = 9.55% 1997 = 9.15%)
STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 3
Written Contract: 5
Domestic Judgment: 5 renewable
Foreign Judgment: 3
BAD CHECK LAWS (CIVIL PENALTY
I'd suggest talking to your lawyer about drawing up a To whom it may concern SOL letter" that you can continue to use.Here's a site with a lot of SOL stuff and a sample letter as well as, state codes.

[url]http://community-2.webtv.net/Y-chat/WhyChatsCredit/[/url]

[JETX]

Bigun, I disagree. If this is an active account (as it appears to have been under the 'new' owner), the SOL would not have expired....

I think it more likely that the first contact 'got lost' when they said that they would try to "track him down."
The second one ("A year later I got a call from a collection agency representing Wells Fargo. Long story short (too late) I hired an attorney to represent me. Some letters here and there and they went away") was probably a simple 'cease and desist' letter. And it is very likely that each of the subsequent contacts were stopped by the attorney sending out more 'cease and desist' letters. Nothing in the post would indicate that this debt was transferred from the writers liabilty, or that the SOL has tolled.

I am not paying $13,000 (including fees) on something I don't owe. This was a corporation that I sold to this guy, and a Business line card...other than my letter to Wells Fargo where I provided my disclaimer, did I EVER mention his name or give permission for him to be able to sign on the card. His name and signature appear on all documents including a cash advance. I never had a pin number in order to secure a cash advance. He would have had to obtain one. What is interesting is that in the course of all the transactions between my lawyer and the collection agencies is the October 1996 statement from Wells Fargo that says "please be advised your account is closed". (I sold my company in September 1996). Yet this guy was able to make over $8,076.31 worth of charges after that. Sorry. I don't owe a dime. According even to Wells Fargo, my account is closed and has been since 1996. If this were really worth pursuing, wouldn't ONE of the many collection agencies that have tried their luck insisted on a court appearance?

note: I am appreciating all your comments, however please remember you are answering a person who does not speak 'legalese" . Thanks!

[JETX]

"If this were really worth pursuing, wouldn't ONE of the many collection agencies that have tried their luck insisted on a court appearance? "
*** Nope. Most 'collection agencies' are simply acting as a collection arm for the original creditor and as such, are not the owner of the debt. This means that they have no rights to bring a lawsuit against you.

You say, "This was a corporation that I sold to this guy, and a Business line card."
Do you have this card and its liability specifically listed in your purchase/sales agreement?? If so, then you could use that signed agreement to pursue recovery of the debt from him.

So, at this point, you are at an impasse. You adamantly feel that this debt is not yours. They probably feel just as strongly that it is. The truth will only be brought out when/if they bring a lawsuit against you. Until then, you will probably continue hearing from 'them' periodically.... and continue to take a 'hit' on your credit profile. The only way to find out the truth, is to force the issue or let it play out.

Have a happy day!

[HomeGuru]

My take is that the money is due and owing by the writer, unless the writer has written evidence from the creditor agreeing to remove the writer as account guarantor.

That is my question...when and how will this 'play out?' If the credit card company issued a statement that said my account was CLOSED a month after I sold my business, then when does SOL 'play out'? Wells Fargo looks to be at fault since they continued to allow charges on an account they deemed closed on their October statement in 1996--indeed they're still tacking on fees. I might also add that the guy that bought my business cannot be found. It's why I feel they decided to come after me. THEY (Wells Fargo) asked ME 6 years ago how to locate him when I was first approached about this matter. So I can hardly seek restitution from the guy if no one can find him. I am willing to go to court on the thing and have told every collection agency so, but get no response. I called Wells Fargo in 1998 when all this began and was told that they have turned the matter over to a collection agency and can not discuss anything with me. I guess I go back to my original question, do I need to still keep spending money on an attorney or leave it alone? Since this account is considered closed by Wells Fargo (and I have the statement to prove it...and have sent copies to everyone), then the SOL should be in effect, right? It doesn't even show up on my credit report and I'd just as soon ignore it.

[JETX]

"when and how will this 'play out?'"
*** We simply can't answer that for you. You have ALL the facts, we only have what you tell us in a very limited exchange. And no one can tell what, if any, actions Wells Fargo might take. We can only provide ADVICE as to what your rights are (as you present them) and our OPINION of what MIGHT happen.

"If the credit card company issued a statement that said my account was CLOSED a month after I sold my business, then when does SOL 'play out'?"
*** It doesn't. Accounts are closed and then re-opened on new activity all the time. Is that correct or proper, who knows?? We don't have all the facts.

"Wells Fargo looks to be at fault since they continued to allow charges on an account they deemed closed on their October statement in 1996--indeed they're still tacking on fees."
*** I think that is just your 'wishful thinking' talking. My OPINION stands.

"I might also add that the guy that bought my business cannot be found."
*** And I can see why.... he has charged BUCKS to YOUR account and skipped.

"It's why I feel they decided to come after me."
*** And my OPINION on why they are now coming after you is already stated.

"THEY (Wells Fargo) asked ME 6 years ago how to locate him when I was first approached about this matter."
*** Okay.

"So I can hardly seek restitution from the guy if no one can find him."
*** Just another reason to have made damn well sure that this issue of a credit obligation was resolved long ago.

"I am willing to go to court on the thing and have told every collection agency so, but get no response."
*** There failure/refusal to call your bluff is irrelevant. And it is possible that Wells Fargo might still.

"I called Wells Fargo in 1998 when all this began and was told that they have turned the matter over to a collection agency and can not discuss anything with me."
*** That should have been your first alarm!!

"I guess I go back to my original question, do I need to still keep spending money on an attorney or leave it alone?"
*** And as already answered..... that is your call. My OPINION (based on your provided information) is that you MAY have liability. The final determination of whether you do or not... is up to you.

"Since this account is considered closed by Wells Fargo (and I have the statement to prove it...and have sent copies to everyone), then the SOL should be in effect, right?"
*** Nope. As noted above, the fact that they said the account was 'closed' or not is irrelevant. The issue as to SOl is what was the date of last activity (DOLA) on the account. That is when the SOL clock starts.

"It doesn't even show up on my credit report and I'd just as soon ignore it."
*** Okay by me.

One thing that I notice you did NOT answer from my previous post... what did your sales agreement say as to the inclusion or exclusion of this 'business' account or corporate liabilities and debts????

The DOLA on my account was in November of 1996. I think the SOL would be in effect by now. And excuse me "wishful thinking"? It's a fact. It's documented. I'm sorry but I have never had a card company close my account and re-open one and certainly not without my knowledge. I would think they would need WRITTEN permission from the ORIGINAL cardholder--which I provided under the stipulation that my name be removed from the account and that I would no longer be responsible for any charges past the date of sale. If Wells Fargo accepted that as a reason to close my account, then they would be under obligation to adhere to my stipulations.

"I called Wells Fargo in 1998 when all this began and was told that they have turned the matter over to a collection agency and can not discuss anything with me."
*** That should have been your first alarm.

Well, DUH! That's when I got an attorney! There have been countless letters back and forth between collection agencies and my attorney. No one does anything and I feel like I'm just wasting money on something that will disappear on its own.

*** Just another reason to have made damn well sure that this issue of a credit obligation was resolved long ago.

Gee thanks for that advice. Maybe I can get Superman to fly around the world backwards and turn back time.
I really don't know who you are but your answers appear to be based totally on opinion that sounds like you should be working for Wells Fargo. I am sorry they lost money but I am not responsible for the actions of an irresponsible person. There are plenty of individuals out there who have skipped out on credit card debt when they've been the ones who incurred the charges. I didn't. I haven't. And I'm not going to pay. I am inundated every week with offers from credit card companies pre-approving me--I even got one from Wells Fargo believe it or not. I've purchased homes, secured loans and seen my credit report. There is NOTHING on it from Wells Fargo or any pending action. My original question still stands--should I just wait out the SOL or spend money to contact my attorney again? And I hope someone answers who can offer more just than an opinion about what SHOULD have happened.
And by the way, this individual bought the CORPORATION and all profits and debt therein.

[JETX]

"My original question still stands--should I just wait out the SOL or spend money to contact my attorney again?"
*** Answer: Who cares?? I have given you the benefit of my experience and knowledge, absolutely at no charge. You can chose to accept it or ignore it. I really don't give a damn. My task, of trying to give you a little insight of your problem is complete. It is up to you to take the next step. Do you what you want. I really have no dog in that fight... and you have made it abundantly clear that you have no interest in any opinion other than the one you already have.

[HomeGuru]

JETX, you got a heck of a lot more patience than me. And your dog has more patience too.

I just put him up for Vatican Honors....Especially after the 'Two Sisters' thread

[HomeGuru]

I think I see some smoke coming out of the tower?

[JETX]

I do have to admit.... I have been especially 'on' lately.
This new DSL allows me to respond faster, leaner, meaner.... and to waste time for more efficiently!!