Collecting Money Ten Years Later

[phyllialobster]

Illinois

Signed contract in December 1992 but later cancelled goods, in writing, due to errors in delivery. Company cancelled, kept money already paid and never notified me that I owed additional money until February 2002, $318.00. Both the company and their collection agency won't state what this charge is for, but does state that they will take the money away from me involuntarily if I don't pay it.

Is it legal for a company to wait ten years and then ask for payment due but won't state what the payment is for? Does it mean by "taking it away involuntarily" that they could garnish my wages from my current job? If so, isn't this an option that they could have used to collect the money in the beginning? Would this be considered a scam?

What are my options in this situation?

 

[JETX]

Q1) "Is it legal for a company to wait ten years and then ask for payment due"
A1) Maybe. According to my research, the SOL (Statute of Limitations) in Illinois is:
Sales (UCC): 4 years
Open Acct.: 5 years
Written Contract: 10 years
Depending on the type of agreement, we assume the 10 year SOL is applicable. However, based on your post, the contract was entered into in Dec 1992, making the 10 year expiration to be Dec 2002, which is obviously already expired.

Q2) "but won't state what the payment is for?"
A2) There is no requirement for the creditor to verify or validate a claim for payment. (The FDCPA does provide for validation, but it only applies to 3rd party collectors and not the creditor).

Q3) "Does it mean by "taking it away involuntarily" that they could garnish my wages from my current job?"
A3) Illinois does provide for wage garnishment, BUT the creditor must have a judicial judgment to do it. This would require them filing and winning a lawsuit against you. As noted in A1 above, any lawsuit could be stopped due to expiration of the SOL. Simple answer: their claim is a false threat and can't be done.

Q4) "If so, isn't this an option that they could have used to collect the money in the beginning?"
A4) Not without a lawsuit and judgment.

Q5) "Would this be considered a scam?"
A5) Nope.

 

[phyllialobster]

This was a written contract and will expire this December.

Even though there is no requirement for the creditor to verify or validate a claim for payment as you state, how can I verify that the amount that they are charging me is correct?

Since I don't have my receipts from ten years ago, they may decide to charge me for something that I have already paid for or add on additional fees.

 

[JETX]

Rather than argue about the SOL issue (either your original post was in error or the calendar is broke), I will respond to the the issue of 'validation'.

The FDCPA provides a method called 'validation of the debt'. Send the bottom-feeding debt collector a letter (certified RRR) asking them to validate the debt.

If you want to read the text of the FDCPA, click on: http://www.ftc.gov/.