How long can a creditor continue to ask for money from a deliquent account?

[Dulanic]

Look keep bickering all you guys want. Legally he owes them NOTHING, plain and simple. Morally, I could give a sh1t since the collection agency's have no morals themselves. For thoose saying spend resposibily... sometimes things come up. I have had an account go to collections quite some time ago when I got laid off. However I did pay it. Mainly because the account wasn't sold off, I paid the original creditor. I have no issues at all with creditors. But when it comes to collection agencys... I have NO morals, their scum plain and simple. As previously mentioned I have been screwed by one recently on something that was not even mine. I can not apply for any credit right now, they are majorly impacting my financials. If I could find a way to screw a collection agency without harming a original creditor I would take it up in a heart beat, they have screwed me, I wish I had a way to screw them. You try applying for any credit with FALSE collection accounts on your credit record. They break the law daily, I would jump for joy if every last one of these companies burned to the ground.

Very rarely am I a person who even thinks about revenge, but they have gone a fvcked with my life, broken the law many times.

 

[Injury]

I'm not a credit and debt expert, but couldn't he go to the original company and square the debt away with them (even if they have long since written it as a loss), even if was just to get a letter saying that there is no debt anymore be enough to prevent any legal action against him, aside from that stautes and such?

I thought that if a collections agency is told to piss off and that the debt would be handled with the original party involved then they can't contact the person anymore. Does this still apply?

Totally dumb situation.

I agree that it would probably be best of you to take care of this somehow rather than to just forget it, but I don't think that you should owe a couple thousand to someone because of it.

Do you still even have the watch????

 

[Dulanic]

Originally posted by: Injury
I'm not a credit and debt expert, but couldn't he go to the original company and square the debt away with them (even if they have long since written it as a loss), even if was just to get a letter saying that there is no debt anymore be enough to prevent any legal action against him, aside from that stautes and such?

I thought that if a collections agency is told to piss off and that the debt would be handled with the original party involved then they can't contact the person anymore. Does this still apply?

Totally dumb situation.

I agree that it would probably be best of you to take care of this somehow rather than to just forget it, but I don't think that you should owe a couple thousand to someone because of it.

Do you still even have the watch????

No the original creditor wrote off the loss that they took. They also sold the debt, so they are no longer involved in any way with this anymore.

The problem with some credit laws is that you get punished for paying off a old debt alot of the time, as they can usually go ahead and report the collection amount and that it was paid, this hurts you big time. My credit report has a false collection account for $222, and it says paid. It dropped my credit score almost 100 points.

 

[mugs]

Originally posted by: Injury
I'm not a credit and debt expert, but couldn't he go to the original company and square the debt away with them (even if they have long since written it as a loss), even if was just to get a letter saying that there is no debt anymore be enough to prevent any legal action against him, aside from that stautes and such?

I thought that if a collections agency is told to piss off and that the debt would be handled with the original party involved then they can't contact the person anymore. Does this still apply?

Totally dumb situation.

I agree that it would probably be best of you to take care of this somehow rather than to just forget it, but I don't think that you should owe a couple thousand to someone because of it.

Do you still even have the watch????

No, they sold the debt to a collection agency, so technically he owes the collection agency money now.

 

[kranky]

Originally posted by: Azoth
Credit Cards and lines of credit are FDIC insured for up to 90% of debt face value.

You default, the creditor still gets most of their money. In the case of cash, that is an exception. In the case of products, the retailer gets the item wholesale, marks it up, then even at 75% repayment under insurance they still turn a profit. Then, they sell the charged off account to a collector for the difference between what they were paid by insurance and the retail cost of the note.

Take a look at your post again. Do you really believe that the FDIC insures credit card issuers for 90% of the balances people run up on their cards?

 

[Dulanic]

Originally posted by: mugs

Originally posted by: Injury
I'm not a credit and debt expert, but couldn't he go to the original company and square the debt away with them (even if they have long since written it as a loss), even if was just to get a letter saying that there is no debt anymore be enough to prevent any legal action against him, aside from that stautes and such?

I thought that if a collections agency is told to piss off and that the debt would be handled with the original party involved then they can't contact the person anymore. Does this still apply?

Totally dumb situation.

I agree that it would probably be best of you to take care of this somehow rather than to just forget it, but I don't think that you should owe a couple thousand to someone because of it.

Do you still even have the watch????

No, they sold the debt to a collection agency, so technically he owes the collection agency money now.

Actually technically he doesn't since SOL is up.

 

[Azoth]

Originally posted by: kranky

Originally posted by: Azoth
Credit Cards and lines of credit are FDIC insured for up to 90% of debt face value.

You default, the creditor still gets most of their money. In the case of cash, that is an exception. In the case of products, the retailer gets the item wholesale, marks it up, then even at 75% repayment under insurance they still turn a profit. Then, they sell the charged off account to a collector for the difference between what they were paid by insurance and the retail cost of the note.

Take a look at your post again. Do you really believe that the FDIC insures credit card issuers for 90% of the balances people run up on their cards?

Up To 90% primarially based on claims history.

Of course, I could be wrong regarding the insuring agency, I am only studying consumer law, not practicing it. I will have to ask my professor to verify the insuring agency.

 

[imported_judge]

interesting issue, learned allot

 

[ArmchairAthlete]

Once when I was like 14 I got a letter from some collections agency. It was about not paying a PC gamer subscription that I never signed up for. I sent them a letter explaining that I was sent magazines without ever signing up for anything and never heard from them again. Weird that they would ever send something in the first place without first getting payment (for a magazine).

 

[imported_judge]

Originally posted by: ArmchairAthlete
Once when I was like 14 I got a letter from some collections agency. It was about not paying a PC gamer subscription that I never signed up for. I sent them a letter explaining that I was sent magazines without ever signing up for anything and never heard from them again.

if you are under 18 years old law are different then when you are 18 and above

 

[Double Trouble]

Geez, it's been a while since I've seen so many stupid and misinformed posts in one thread. Azoth and a handful of others have provided some accurate information, while others (cough sharkeeper cough) pretend to know the answers but instead only provide useless drivel.

I'm going to post this not just for OP, but for others who might have similar questions:

The bottom line is that you should not pay them anything. Period. First, legally you have no obligation to do so. Each state has a statute of limitations for different types of debts. Unless your state has a statute of limitations longer than 14 years on unsecured debt, there is absolutely no way the collectors can compell you to pay them a penny. Further, they can not report this debt on your credit report, because you defaulted on it more than 7 years ago. If they do, you can sue them for "defamation of character" for up to $1000 in small claims court. Defamation in this case is easy to prove, since the very fact that they illegaly report the debt on your credit report in and of itself is defamatory to your character.

In addition, if you feel morally obligated to repay the debt, you should *still* not do it. If you do, the debt becomes "re-aged", and can once again be reported on your credit report as a late payment or settlement.

Azoth provided some good info on your next course of action. Send the debt collector a certified letter to tell them that the statute of limitations has passed, and that they cease any and all contact with you, your employer, or anyone else they might want to contact related to the debt. Also inform them that any subsequent collection activity is illegal under the FDCPA, and will lead to a lawsuit.

Also, for the idiots talking about jail or fraud etc, go edumacate yourself. What the OP did is not fraud or theft, unless he intended to defraud when he made the purchase. In other words, unless he bought the watch knowing full well that he would never pay for it, it is not fraud. Pure and simple.

Inform yourself.... this is an excellent site: Credit Info Center

 

[TuxDave]

1) I agree... you're under no legal obligation if the limit has expired.
2) You're an asshole

 

[TitanDiddly]

:thumbsdown:

You owe them money.

 

[imported_judge]

Originally posted by: PhasmatisNox
:thumbsdown:

You owe them money.

if statue of limitation have expired why dose he still owe them money when law says he don't?

 

[T2T III]

Originally posted by: mwtgg

Originally posted by: BentValve
Whats wrong with society is talk has cheapened to a new all time low and you ANandlosers are only contributing to this. Its sad. 10,000 posts!!!!! Get a life man! Seriously! At least try and shut down the internet for a couple hours once in awhile!! Gawd I feel sorry for you really.

So let me get this straight, you came on to this forum looking for your thievery to be accepted, and it wasn't so you resort to insults regarding post counts?

Pathetic.

I guess he was referring to me. 10,000 posts is a lot when you come to think of it. However, it was a cheap attack.

A brief check of BentValve's profile indicates his name is James Johnson from Washington state. I wonder if this is the same James Johnson from the home theater forums? If so, I was attacked by this guy before on those forums because I wasn't supporting my local mom and pop vendor on an audio purchase. Again, if it is, attacks are prevalent with this individual. :roll:

 

[T2T III]

Originally posted by: digitalsm
And for all of you bashing him.

CCs and other companies PREY on college students. IMHO alot of them act unethical by giving the vast majority of college students CCs hoping their parents pay off their debts. Thats what CCs do, and typically the risks of giving college students CCs does pay off because parents usually bail their kids out.

Sure, creditors might prey on such individuals. However, as part of the agreement process in getting the credit, we "approve" an "agreement of terms" policy. Sure this terms policy is full of small print created by lots of legal eagles. However, it does not block us from paying our debts.

 

[mobobuff]

Originally posted by: mugs

Originally posted by: mobobuff
Both BMG and the Doubleday Book Club have hired collection agencies to get their money from me. I received dozens of empty threats and never paid a dime, eventually they gave up. But in both of those cases, I knew there was nothing legally binding me to pay them.

But your case sounds a bit more serious.

What do you mean there was nothing legally bind you to pay them? You owed them the money, right?

Man there are a lot of scumbags on this forum

No, actually, with BMG, I signed up for the 12 free CDs thing and you have to buy like, 5 in the next 3 years bla bla bla. When I signed up for it, I was only 14 years old, so I'm not legally binded to their protocol, it was there mistake for not issuing some proof of age check (the order form didn't even ask for age).

With Doubleday, my e-mail and other information made it into one of those scammer things that uses your information to enter you into subscriptions and deals. I started getting letters from them saying I owed them money, and I had never signed up or agreed to any terms, therefore I didn't owe them anything. After refering to the BBB, I learned that Doubleday had MANY complaints directed towards them about ghost accounts accusing them of owing money.

I was pointing out that after a year or so, the collection agencies gave up.

I do pay my dues when I know I have to, like late fees and parking fines and that kinda stuff.

 

[Vic]

Originally posted by: Azoth
Credit Cards and lines of credit are FDIC insured for up to 90% of debt face value.

Complete and total bullsh!t. Put the crack pipe down. Credit cards, lines of credit, auto loans, personal loans, installment loans, and conventional (non-government) mortgages are NOT insured by ANY government agency. You're thinking of checking and savings accounts. The reality is that the business who sold him that watch lost the money in its entirety. The only reason it's not theft or fraud is because they were stupid enough to lend him the money in the first place.


It is true, however, that the OP no longer has any legal obligation to repay the debt, and that the collectors cannot damage his credit. They failed to act within the proper allotted time period.

 

[Vic]

Originally posted by: digitalsm
And for all of you bashing him.

CCs and other companies PREY on college students. IMHO alot of them act unethical by giving the vast majority of college students CCs hoping their parents pay off their debts. Thats what CCs do, and typically the risks of giving college students CCs does pay off because parents usually bail their kids out.

How is this relevant? This wasn't a credit card. He went into a jewelry store and bought a watch on a store account.

And your little point doesn't matter anyway. "Prey" :roll: Can't pay for it, don't buy it. Some people just have to learn the hard way, I guess... Others never learn at all and insist they were victimized... what a joke!

 

[tk149]

Originally posted by: digitalsm
And for all of you bashing him.

CCs and other companies PREY on college students. IMHO alot of them act unethical by giving the vast majority of college students CCs hoping their parents pay off their debts. Thats what CCs do, and typically the risks of giving college students CCs does pay off because parents usually bail their kids out.

Oh yes, CC companies are TEH EVIL because parents failed to teach their children how to handle finances properly, and the ADULT (over 18) offspring failed to learn how on their own.

Ever hear of personal responsibility?

I got my first CC in college. No one has ever had to bail me out of CC debt. The CC helped me out a LOT in college, and helped me create a decent credit history.

Oh, and BentValve you're a thief, plain and simple. You and your ilk are the reason interest rates are high, and I have to lock my stuff up.

You could have given back the watch when you realized you weren't going to pay the debt (unless you intended to outright steal it, of course). You could have arranged a payment plan with the jewelry store for the first 7 years. You could have done many things that would have regained your integrity. You chose not to. You may have been "young and dumb" at one time, but now you're just old and dishonest.

You disgust me. :|

 

[abaez]

Originally posted by: BentValve
Whats wrong with society is talk has cheapened to a new all time low and you ANandlosers are only contributing to this. Its sad. 10,000 posts!!!!! Get a life man! Seriously! At least try and shut down the internet for a couple hours once in awhile!! Gawd I feel sorry for you really.

That's funny you have as many posts as me in almost half the time.

 

[Injury]

Originally posted by: judge
interesting issue, learned allot

agreed.

Happy this has been a decent discussion instead of flames on top of flames. (for the most part anyway)

 

[BentValve]

Originally posted by: abaez

That's funny you have as many posts as me in almost half the time.

I take it math is not one of your strong points.

 

[BentValve]

Originally posted by: Injury

Originally posted by: judge
interesting issue, learned allot

agreed.

Happy this has been a decent discussion instead of flames on top of flames. (for the most part anyway)

I agree, I got what I needed out of it...thanks again to all that helped.

 

[alphatarget1]

Originally posted by: digitalsm
And for all of you bashing him.

CCs and other companies PREY on college students. IMHO alot of them act unethical by giving the vast majority of college students CCs hoping their parents pay off their debts. Thats what CCs do, and typically the risks of giving college students CCs does pay off because parents usually bail their kids out.

uh, no. it's not the CC companies' fault that dumb college kids max out their credit cards and not pay'em.

im a junior now and i have total of 11.5k credit, never had one single late payment.