IL collection laws

[redhead_jaz]

What is the name of your state? I live in Colorado and am trying to pay off an Illinois debt.

I have a debtor that has been contacting me on and off for about 8 years. I finally have the money to start paying them off. However, they have now referred the debt to a collection agency and in the past three months have added over 1600 dollars worth of collectin fees to my debt. I received a bill from them in June saying that I owed $2515 and now they are saying that I owe $4192. Anyone know if this is legal for them to do?

 

[Ladynred]

What KIND of debt was/is it ??

SOL for credit cards in IL is 5 years- so it would likely be expired if you've not paid the original creditor in 5 or more years.

The SOL for CC's in CO is THREE years, so the SOL is STILL expired if that's the kind of debt it was/is.

Either could apply as they can sue you where you live NOW or where you entered into the agreement.

If it WAS a cc debt, all you need to do now is send them a cease and desist letter telling them never to contact you again as the debt is time-barred in BOTH states.

 

[redhead_jaz]

The debt is from Northern Illinois University....not a student loan, but money that I never paid the University directly for education/housing. Does the SOL still apply?

 

[bigun]

First, see if the ca is operating legally in the state.
http://www.lawdog.com/states/co/st1c.htm

This sounds like a written contract and the SOL in Il. is 10 years.

ILLINOIS
INTEREST RATE

Legal: 5%
Judgment: 9%
STATUTE OF LIMITATIONS (IN YEARS)

Sales (UCC): 4
Open Acct.: 5
Written Contract: 10
Domestic Judgment: 20
Foreign Judgment: Same as foreign jurisdiction

Have you demanded validation?
Do you have a copy of thew contract you signed? What does it say about colection fees,etc. Has this been listed on your credit reports?

 

[redhead_jaz]

I got in touch with the IL attorney general's office and they told me that it should say up front what the penalties are for not paying them the money I owe. I called NIU today and requested that they send me and itemized statement as well as the original document that I signed that stated any penalties/late fees. I am sending them a certified letter tomorrow stating the same thing. I am also sending a certified letter to the collection agengy saying that I am disputing the dept. Both groups are getting a copy of the letter that I send to the other one. My problem is that the collection agency said that they are going to file a suit against me on Monday. After that I'm responsible for court fees too.

When I talked to NIU they specifically said that the 1600 was for collection costs, NOT INTEREST RATES. I'm trying to figure out if they can do that or not.

Yes, this has all been listed on my credit report.

 

[bigun]

If this loan defaulted 8 years ago, it should not be on your credit report. Someone has reaged.
I'd not send the collector anything you're sending NIU and vice versa.
Specifically demand validation from the collector. Tell them you want a copy of the contract and a complete accounting. Send it CRRR. Here's a sample letter you can modify.

http://consumers.creditnet.com/straighttalk/board/showthread.php?s=&postid=85495#post85495

Don't forget to check on the ca's status in Col.

 

[redhead_jaz]

The back of the letter from my ca says that they are licensed in CO...is there anyplace where I can check this? Should I just deal with the ca and not NIU at all?

Thanks for all the advice, btw...this is very helpful!

 

[bigun]

You're always better off dealing with the orginal creditor. If NIU will deal with you and recall the collection then that would be your best bet.
Use the lawdog link to get to Co. contact info for collection agencies.

 

[redhead_jaz]

NIU has told me that it's already in collections and they won't deal with me at all. Should I be contacting NIU for the original contract or should I just let the ca deal with it?

 

[JETX]

"It is unlawful for any collection agency, debt collector, solicitor or collection manager to conduct any collection activities in the State of Colorado without first obtaining a license from the appropriate state agency. The licensing regulations are a part of Colorado's Fair Debt Collection Practices Act. (C.R.S. 12-14-101 et seq.) The Colorado Collection Agency Board, created pursuant to C.R.S. 12-14-116, oversees and regulates all registration and licensing requirements."

Click on the following to see if an agency is licensed in Colorado:
http://www.ago.state.co.us/CAB/cabdata/cabinput.cfm