Recycled Debt Collections??

[sandyclaus]

What is the name of your state (only U.S. law)? California

Many years ago, when I was young(er) and foolish, I got my first credit card. Ran it up, and got careless. Lost the card, and it went to collections. Way back then, I had no idea what that was all about, so I just blew it off and went on my merry way.

Fast forward to 15 years later. I've learned a lot of lessons since the early days, learned about credit and how to manage it. Much to my surprise, one day I receive a collection notice about that old debt from years gone by. Seems that this collection agency has purchased the debt and is now trying to collect on it. Never mind the fact that the debt was written off by the original creditor quite some time before, they have it now and are demanding payment plus interest. Of course I wrote to the collection agency, telling them that they needed to validate the debt, and reminding them that not only had it been written off, but that the statute of limitations had LONG run out on that debt and that it no longer even shows up on my credit report. (Actually not true, since NOW that collection agency has placed an entry on my credit report about the long-lost debt, causing me to have to correct the report once I got the agency to stop trying to collect it.)

What shocked and amazed me more was that this collection agency was not the last to try this tactic. I got no less than 5 more agencies over the next 2 years that followed trying to collect on that very old debt and tacking another unwarranted collection account to my credit report.

Is this common practice? Are these collection agencies legitimate? How can they get away with this?

[cosine]

"Written off" doesn't mean what you think it means.

Still, if they never sued and it went past SOL, they cannot use the courts to come after you for the money. And after 7 years past the write off, it can't legally be reported to the credit report.

However, they can still legally attempt to collect the debt. You can legally pay your debt. Or you can tell them it is past SOL and that you refuse to pay it.

As for the credit report item, remind them that it is illegal to place an old debt on your credit report, and that if they fail to remove it you will take legal action against them. And at the same time, get a copy of all 3 credit reports and dispute the item(s) as out of date. Check and be sure they have not re-aged the items (an illegal practice).