Debt Collection Law Suit

[KSTexas]

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

I received a call on Friday from a woman stating she needed to know if my husband would be home on Saturday because she needed to serve legal documents. I asked what the documents are and she said he is being sued. She gave me a phone number to call for more information, and suggested I request a hold on delivering the documents because once they are delivered I can only gain information in court. I called the number she provided, which was for First Financial Partners, and the man I spoke to stated that a collection agency, Assured Financial, is suing for an outstanding debt on a utility bill. He said they are suing for $968.87 but had at some point offered a settlement of $794.75, and he could likely get them to agree to this settlement out of court if I would pay it immediately. He said I could pay over the phone or go into a Chase bank and wire the money. He also said I should have received a letter 30 days ago from the collection agency which I did not. I asked him for time to research further. He said that he contacted the lady who called about serving papers and asked her to hold them until further notice, and asked me to call him back on Monday.

I called the utility company, and they gave me the name of the collection agency it was referred to, West Bay, but could not give me any more information. I researched West Bay and they are no longer in business. I went to the website for First Financial Partners and it is very basic with little information. Also, the address the man gave me for First Financial Partners comes up with a different collection agency in CA. I am unable to find a working phone number for Assured Financial either.

All of this seems really shady, then I read that the statute of limitations for filing a lawsuit on debt in Texas (where debt originated) and in California (where collection agency is) is 4 years, and this debt is 6 years old. Can anyone tell me based on this information if this company (if they are real) could even file a lawsuit at this point?

Thank you so much.

 

[single317dad]

- It appears that West Bay was acquired by National Recovery Agency.

- What state the debt collector's address is in will likely not matter for your purposes. They'll be licensed to operate in each state in which they attempt to collect.

- If the Statute of Limitations has indeed expired on this debt, your husband should use that defense in court to have the case quickly dismissed. The SoL starts from the date of first default, which is usually the date the original bill in question became past due and no further payments or clear promises to pay were made.

- Whether the debt was "referred to a collection agency" or "sold to a debt buyer" can matter. If the utility was able to discuss the matter with you, then I'd guess they still hold the debt. Your husband may have financial recourse against a third-party debt collector who initiates a lawsuit on a time-barred debt.

A local consumer debt attorney will be able to properly defend you and protect your rights.

 

[Zigner]

One note about the statute of limitations: If you have moved out of Texas, that tolls (stops) the time with regard to the statute.

ETA: The locations of the collection agency doesn't affect the SoL.

 

[KSTexas]

We did move out of Texas for a few years, then moved back. Since we moved back does the time that we were out of state still not count toward the SoL?

 

[KSTexas]

Does anyone know of a way to verify the validity of the company that is calling to collect the money? I can't find anything that looks legit online. I don't mind taking care of this out of court, but don't want to get scammed.

 

[single317dad]

Like many legal issues, tolling is complicated. Whether the law is applicable to you, and to what extent, would be argued by both attorneys and decided by the judge. Here is a resource that may familiarize you with tolling of the TX SoL, and how it could affect your case:

http://www.texas-opinions.com/law-limitations.html

As to verifying the debt collector, I think you should find the correct court the lawsuit has been filed in and go from there. At this point you don't know for sure that you've been sued. Find that out first, then move to settle your debt.

 

[latigo]

One note about the statute of limitations: If you have moved out of Texas, that tolls (stops) the time with regard to the statute.(?) . . . .

Curious, but where in Texas' Practice and Remedy Code, its case law or elsewhere is it said that the absence of a debtor from the state acts to toll the running of the four year statute of limitation for debt collection?

 

[Zigner]

Curious, but where in Texas' Practice and Remedy Code, its case law or elsewhere is it said that the absence of a debtor from the state acts to toll the running of the four year statute of limitation for debt collection?

http://www.statutes.legis.state.tx.us/Docs/CP/htm/CP.16.htm

I stand corrected, as I don't see that Texas tolls the SoL for debt. I made an incorrect assumption (I really should know better.)