Statute of limitations?

[So Stressed!]

What is the name of your state? Rhode Island

Hi. I opened up a credit card account in 1998 when I was living in New Jersey. For the first three years I made payments diligently and was in good standing with my creditor. Unfortunately in 2001, while I was living in Georgia, I was unable to make payments for a period of 90 days and the account was placed with a collection agency. The agency quoted me a much inflated amount so, because I was unable to pay it, I disputed the debt and just accepted the fact that I would have a black mark on my credit report. I never heard another word about it.

Fast forward 5 years. I am now living in Rhode Island and attending graduate school. A few months ago I was contacted by a New Jersey/Pennsylvania based collection agency and told I would be sued if I did not pay off the debt (which by that time had been inflated even more). Agency representatives called me several times a day and were very verbally abusive. I consulted a lawyer through my university's legal aid program and he told me that they could not sue me across state lines so I should dispute the debt again. I sent them a C&D letter and, after leaving a few more nasty phone messages, they stopped contacting me.

Today I received a letter from a different New Jersey/Pennsylvania based collection agency again demanding payment. The stationery is exactly the same as the first firm (only the name and address are different) so I think they might be business partners. I also received a recorded message stating that because I accepted the call I was acknowledging the debt. I can only assume that the harassing phone calls will begin shortly. I want this all to end but, as a student, I am living below the poverty level as it is and am in no position to offer these people any payment. At what point can I be sure that the statute of limitations has passed so I can stop losing sleep over this debt?

[Ladynred]

I consulted a lawyer through my university's legal aid program and he told me that they could not sue me across state lines so I should dispute the debt again

The lawyer is wrong. They sure as heck CAN sue you, they'll just hire a local lawyer to do it !

Accepting a phone call is NOT acknowledgement of the debt, that's pure hogwash and a collector LIE.

You have every right to demand they produce proof of the debt. Go to [url]www.creditinfocenter.com[/url] and read up on the debt validation process. Just make sure ALL your correspondence with them is IN WRITING.

[So Stressed!]

Originally Posted by Ladynred

The lawyer is wrong. They sure as heck CAN sue you, they'll just hire a local lawyer to do it !

Thanks for replying, Ladynred. All the more reason to find out what the Statute of Limitations is...now I'm REALLY losing sleep over this! I've looked online for information about the SOL but the websites aren't very clear and some even contradict each other. I really need answers to the following questions:

Do I go with the NJ SOL, the Georgia SOL, or the RI SOL?
How long is each state's SOL in regards to credit card accounts?
Does it start from my last missed payment or from the day I opened the account?

If anyone has any concrete infromation about this it would be much appreciated. The collection agency is doing a good enough job of scaring me with the laundry list of actions they say they can take against me. Now I just want to know how much longer I have to hold out until I can use the SOL defense. Thanks - So Stressed!

[debtcollector`]

The SOL started with the date of your last payment. The SOL clock stopped running the day you left New Jersey. SOL is not going to help you.

DC

[So Stressed!]

Thanks for responding, DC.

So, because I haven't lived in NJ since early 1999 (about 4 months after I opened the account) I can be sued at any time for the rest of my life? Even though the account was in good standing for several years after I left the state? That is troubling.

Do I have any legal way of avoiding a judgement? My student loans/pathetic part time job barely cover my living expenses. I cannot offer these collectors anything. They asked me if I could borrow from my parents but that is not an option (both are retired and living off of SS). What can I possibly do to remedy this situation?

[Ladynred]

Do I have any legal way of avoiding a judgement?

Besides making arrangements to pay them .. only bankruptcy will get you out of this one.

While what DC says is true about the SOL tolling in NJ, that doesn't mean you can't attempt to use that as your defense. If this winds up before a judge, the judge isn't going to know the debt originated in NJ, chances are the rent-a-lawyer the CA hires to sue you won't have SQUAT for a debt as old as this one and won't know anything about NJ either. If you're sued in RI , use the RI SOL anyway. If they whip out the NJ origination, you may be sunk. The expired SOL is an AFFIRMATIVE defense, if you do NOT bring it up, you forever lose the chance to use it at all !

Follow thru and make the validate the debt, I gave a link to good info on how to do this.