Debt Collection, Serving, and Statute of Limitations

[Fw8319]

What is the name of your state? Washington

Hey all, hoping I can get some insights into a situation I'm in. Here's some background information:

I got into a card accident almost 3 years ago, and I received a ticket for following too close, making me at fault. I had no insurance at the time, but the other driver had full coverage. I began making payments to their insurance company, but stopped shortly after. The insurance company was somehow able to get the court to suspend my license because I hadn't paid.

Here's what's going on now:

The insurance company last contacted me with a letter in the summer of 2005, stating I owed them nearly $9000 and my account would be given to a collection agency. I don't live where they are trying to contact me, but I've spoken to the residents of where they think I live, and apparently some sort of private investigator/detective tried to serve me papers, but they (the residents) wouldn't take them. I live a pretty substantial distance away from this area now, and I called the county courthouse to check up on my record. They said I had no judgements, but there was a lawsuit pending from the insurance company (not the collection agency), and they were just waiting to find me to serve me. Also, I called the collection agency and asked about my account with them. They asked me for my SSN and I gave it to them, and when they tried to ask me for my phone number or address I didn't give it to them.

Here's my questions, any answers are greatly appreciated:

The Statute of Limitations in Washington is 3 years, right?
Does that start from the date of the car accident?
From what I read in another post, they can technically go to my work and give the papers to somebody else that agrees to hand them to me, and that constitutes serving, right? What happens if they can't find me when the 3 years is up?
Are there any loopholes they can use as an insurance agency to extend the limitation?
What can they do with my SSN I stupidly gave them?
If the case becomes invalid because of the SOL, can I get a license again?

TIA!

[Fw8319]

I should also mention that, for the record, I fully intend on paying them back the $9000 owed after school; I'm scraping by in college to become a veterinarian.

[IrishNodak]

Originally Posted by Fw8319

What can they do with my SSN I stupidly gave them?

I'll let the experts handle all your other questions but they will now be able to track you using your SSN through school and your job. Also your credit reports if they have your current address.

[K'Ta]

They WILL find you. The SOL doesn't start until the date of last payment, and then the SOL generally depends on what type of contract you breached. Giving them your SSN wasn't stupid. Refusing to give them your current address was, but like I said, they'll find you anyway. With your SSN they can pull your credit report. It has listed your current address, phone number and employer. You're going to get served. Just because you're in college doesn't mean you can wait till you get your life together to take care of this. I can tell you right now the insurance agency, collection agency and judge won't give a rat's ass what you're doing with your life or what your financial situation looks like. They are going to get paid one way or another and the harder you make it for them to collect the bigger the amount you'll have to pay them. When they get the judgment against you (and they will, have no doubt) it's likely renewable for a very long time. This is going to haunt you like you wouldn't believe, get ready for it and don't plan on buying a house or car or opening any credit card accounts for about the next 10 years. God save you if you want to rent an apartment or even get a job. Did you know most employers now run credit checks on potential employees? You're going to want to take care of this ASAP, a paid judgment looks better than an unpaid one, although truthfully, it's still going to be a big ol' handicap for you.

[racer72]

The Statute of Limitations in Washington is 3 years, right?

Nope, 6 years. Look up RCW 4.16.040. The SOL is not going to matter to you anyway, even if you were to successfully defend yourself in court in the future using the SOL as your defense, the debtor does not have release the financial lien that is causing your license suspension until the debt is satisfied.

Does that start from the date of the car accident?

The SOL clock starts when the debt becomes past due. The date of the accident is irrelevent.

From what I read in another post, they can technically go to my work and give the papers to somebody else that agrees to hand them to me, and that constitutes serving, right? What happens if they can't find me when the 3 years is up?

What's with this 3 year thing? Yes, you can be served by proxy in Washington. You can be considered served by a notice in the newspaper too. Washington has some of the most liberal laws when it comes to civil lawsuit service. The SOL really means nothing, you can be sued for the debt anytime in the future, the SOL is just a positive defense in court, it does not mean you can't be sued.

Are there any loopholes they can use as an insurance agency to extend the limitation?

Possibly.

What can they do with my SSN I stupidly gave them?

Give it to me and in an hour I will know as much about you as your close friends, possibly more. Your credit history, place of employment, criminal record, etc. They probably had it already, the insurance company used it to suspend your license. You just confirmed that you are the legal debtor when you gave it. Want a surprise, Google your SSN. If it is in any online public records, it will show up.

If the case becomes invalid because of the SOL, can I get a license again?

Read my first response.

[Fw8319]

Thanks everyone for replying to my post! I was led to believe by a friend - who was just about to take the bar exam - that I could "wait it out" for the last 3 years and be OK...But it doesn't sound like that's the case. I have a few replies and additional questions.

In response to these two statements:
---

With your SSN they can pull your credit report. It has listed your current address, phone number and employer. You're going to get served.

You can be considered served by a notice in the newspaper too.

---

I had a job for 4 months after they tried to serve me at my old residence, and I've had the same bank account for years (which has had my current address for quite a long time). Would anybody be up to offering some speculation about why the collection agency hasn't just posted an official notice in the newspaper, or come knocking at my door by now, or showed up at work? They've basically been silent for about a year, aside from when they tried to serve me.

They are going to get paid one way or another and the harder you make it for them to collect the bigger the amount you'll have to pay them.

I've talked to a few people about that situation. I received mixed responses about whether they could actually tack on additional charges to my debt (Remember it wasn't a loan or anything like that, how can they charge interest?). If that's the case I supposed I should contact them ASAP, would it be better to get ahold of them directly and A) offer a settlement using funds from selling my car, B) offer to pay them what I can afford monthly (probably $100), or C) Get ahold of one of those debt settlement companies? If the settlement companies are the way to go, has anyone had a positive experience with a particular company?

Thanks again!

[debtcollector`]

Whatever you do do not go to a debt settlement company.

I have not heard of one person who was helped by one of those places.

DC

[K'Ta]

I had a job for 4 months after they tried to serve me at my old residence, and I've had the same bank account for years (which has had my current address for quite a long time). Would anybody be up to offering some speculation about why the collection agency hasn't just posted an official notice in the newspaper, or come knocking at my door by now, or showed up at work? They've basically been silent for about a year, aside from when they tried to serve me.

They're still looking for you. Just because they don't know where you are NOW, doesn't mean they won't find you. You'd be amazed at what a good skiptracer can accomplish.

As to debt settlement companies - they're fairly worthless as far as I can tell, but even so the time to use one would be before the suit was filed, it's too late for that now. Call them and see what you can work out. Try for a lump sum settlement (if you can sell some stuff to come up with say...60% of the balance, try to settle for that). I doubt they'll accept payments, but it never hurts to ask.

[Ladynred]

God save you if you want to rent an apartment or even get a job. Did you know most employers now run credit checks on potential employees?

'
Oh please Yes, many employers will pull credit reports but they are rarely looking for bad credit, and unless you're looking for a job where you would be responsible for money, it's not going to be much of a deterrant to employment. There are many employers who have you sign the consent to pull your credit and then never do .. they want to know if you'll comply at all. If all the people with lousy credit were denied jobs because of it, the unemployment rate in this country would skyrocket !

Bottom line, they can't get blood out of a stone. If you have no assets and no job, there's nothing they can take from you .. now. Your bank account is the easiest target once they have a judgment against you, 2nd is your wages - IF you make at least 30x the Federal minimum wage/pay period. If you earn less than that, they cannot garnish.

The judgment will give them the leverage they need and they will wait to get paid if you have nothing now. They'll just wait.. and enforce the judgment when they can. You can certainly try to negoitate payments, but don't be surprised if they scoff at $100/mo.

I agree with the others, debt settlement companies will only make things worse 99% of the time.

[mtnstyne]

Originally Posted by Ladynred

'
IF you make at least 30x the Federal minimum wage/pay period. If you earn less than that, they cannot garnish.

Help me out with this, what is "30x the Federal minimum wage/pay period? seems like a simple math problem...30 x $5.15=$154.50 per pay period. What is a pay period (week, 2 weeks, month?) Just trying to figure this out because it is always worded complicated rather than just saying $154.50/week...

However, just glancing at WA it is 40x the Federal minimum wage rather than 30x which works out to $206/pay period or 75% of your wages are exempt from garnishment, whichever is greater.

Deryk

[Ladynred]

The MAXIMUM garnishment allowed per FEDERAL law is 25% of one's wages after all necessary taxes have been taken out. (except for child support)

If you do not make more than 30X the Federal Minimum wage (30x5.15), then you cannot have your pay garnished.

WA statutes say:

RCW 6.27.150
Exemption of earnings — Amount.


(1) Except as provided in subsection (2) of this section, if the garnishee is an employer owing the defendant earnings, then for each week of such earnings, an amount shall be exempt from garnishment which is the greatest of the following:

(a) Thirty times the federal minimum hourly wage prescribed by section 206(a)(1) of Title 29 of the United States Code in effect at the time the earnings are payable; or

(b) Seventy-five percent of the disposable earnings of the defendant.

(2) In the case of a garnishment based on a judgment or other court order for child support or court order for spousal maintenance, other than a mandatory wage assignment order pursuant to chapter 26.18 RCW, or a mandatory assignment of retirement benefits pursuant to chapter 41.50 RCW, the exemption shall be fifty percent of the disposable earnings of the defendant if the individual is supporting a spouse or dependent child (other than a spouse or child on whose behalf the garnishment is brought), or forty percent of the disposable earnings of the defendant if the individual is not supporting such a spouse or dependent child.

[mtnstyne]

Was using a different reference for the 40x:

Wage Garnishment and Bankruptcy Exemptions -- Washington
WAGE GARNISHMENT EXEMPTION: 75% of earnings or 40 times the federal minimum hourly wage, whichever is greater


MAXIMUM INTEREST RATE: Legal: 12% Judgment: 12%


STATUTE OF LIMITATIONS ON ENFORCEMENT:


Open Account (credit card): 3 years
Written Contract: 6 years
Domestic Judgment: 10 years
Foreign Judgment: 10 years

Anyway, you still didn't explain how it is computed. I got the 30x5.15, but is that a weekly figure or a monthly figure or what is the time period for the computation? Thanks again.