Should we pay or fight?

Greetings, o wise ones! Hope someone can help here. It's urgent as court date is Oct. 12.
In 1991, while living in OH, my husband foolishly (sorry fellas, but he agrees on this one) cashed one of those "need cash now" checks that he rec'd in the mail, for a loan carrying 18% interest. He got a payment booklet and made payments until late '93, when we moved, had a baby and started a business, i.e. were totally broke. When we quit making payments we NEVER, repeat NEVER, heard a thing from TransAmerica again. So, outta sight, outta mind...
Then in Feb. 2000 we get a letter from a TX collections agency saying they now own the loan and want the $, now 2x the original amt. HELLO?!?! I got a credit report: NOTHING on it regarding this loan. So I said, we ain't payin'. We are planning to buy a house soon and the mortgage guy agreed, don't pay, it's not even on the report. They cont'd to send letters (one offered 70% repayment if lump sum).
In July, we got a ltr. from a local atty., threatening court action. We now live in MO. This gave me pause but I still ignored it.
Then we got a court summons, seeking judgement for the full amt., now more than 2x original loan. OUCH! The papers indicate the loan was charged off in '94. I contacted the lawyer and offered 50% cash. The agency refused, wants 65% cash to settle.
So, what to do? Bite the bullet and pay up, or try to fight this? Husband says he'd be happy to hire an atty. if we thought we could beat this or reduce it.
What do you think?

[JETX]

As I see it, the original debt was incurred in 1991 in Ohio. Last payment was made in 'Late 93' (worse case, December). Based on that, it looks like this debt is about 6 years and 9 months from last 'acknowledgment' (payment). My research shows a 4 year Statute of Limitations in Ohio for 'open accounts'.

Based on this, it looks like you should not be held liable for this expired debt.

You received a court summons with a court date of 10/12/2000. What court?? Is this a small claims court??? If so, I would appear on you own "Pro Se" and point out that the Statute of Limitations has expired, that it is so old that you know longer have any records, that you believe it was paid in full, etc.

If not in Small Claims (District??), then you will probably need an attorney to make the claims for you.

Finally, since so many states are involved in your post (OH, TX, MO), where is the court located???

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Steve Halket
Judgment Recovery of Houston
JRS.Houston@excite.com
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This is my PERSONAL OPINION and is not legal advice! Consult your local attorney for your specific situation and laws!

Hello and thanks for your reply. I wasnÕt sure where to reply to your questions so I hope you find this. I am very excited by your reply but I am confused on one point... you said the Ohio SOL applies to Òopen accountsÓ but this loan was charged off in 1994. So does the SOL still apply?

This case is in Circuit Court, or Small Claims. So we could appear on our own behalf - although this scares me!

Also, to recap the timeline/states involved:
10/92 - Loan taken, living in OH
11/93 - Move to TN, no payments made after this
11/94 - Loan charged off by TransAmerica w/ no attempt by them to contact us
10/98 - Move to MO
2/00 - Receive first ltr. from TX collections agency
9/00 - Receive summons to Circuit Court, State of MO (small claims)

Hope to hear from you again soon! Thanks!