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Suit for breach of contract by collection agency

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M

MB1

Guest
I am being sued for "Breach of Contract" by a collection agency. The original contract was for a credit card in 1989. From 1991 to 1995 I was paying on a Chapter 13, but was unable to finish paying it in the last year. I don’t remember getting any bills for this since then, until receiving the summons for the lawsuit. It was not on my credit report all this time either, and I bought my house in late 1999. I am wondering if I have any defense against this suit, and how it will affect my credit rating now? Also, they want interest, lawyer's fees and court costs added to the original amount owed. Is there any action I can or should take between now and the court date to possibly lower this amount? I live in Missouri, the court is in Missouri, but the original contract states that the agreement and the account are governed by the state of Illinois. Which state laws would apply to this situation?

 


I AM ALWAYS LIABLE

Senior Member
MB1 said:
I am being sued for "Breach of Contract" by a collection agency. The original contract was for a credit card in 1989. From 1991 to 1995 I was paying on a Chapter 13, but was unable to finish paying it in the last year. I don’t remember getting any bills for this since then, until receiving the summons for the lawsuit. It was not on my credit report all this time either, and I bought my house in late 1999. I am wondering if I have any defense against this suit, and how it will affect my credit rating now? Also, they want interest, lawyer's fees and court costs added to the original amount owed. Is there any action I can or should take between now and the court date to possibly lower this amount? I live in Missouri, the court is in Missouri, but the original contract states that the agreement and the account are governed by the state of Illinois. Which state laws would apply to this situation?

My response:

Illinois law applies, per the contract. Illinois has a 5 year Statute of Limitations, beginning from the last date of payment, or from the last date that you acknowledged the debt.

Look at the filing stamp date on the complaint. Then, look at the complaint and, on the inside, should allege the last date of activity on the account. Then, find your records concerning this debt and see if your records agree with the allegation.

Your defense could in fact be the Statute of Limitations, so their filing could come down to "days" within or outside of the S.O.L. So, you may, in fact, wind up having to count calendar days to determine whether they have filed within the S.O.L.

Good luck to you.

IAAL
 

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