I recently received a collection notice for funds that I owed that are over 12 years old How do I solve this?

For starters....relax. Take a deep breath.

Do you have anything in writing from these folks? Or was everything verbal? From this point on, do NOT talk to them. If they call inform them to write you a letter and don't call again.

Every state has a "statute of limitations" law on debts. They very from state to state, but average about 6 years.....very few are over 10.

What the SOL does is limit the time a creditor has to take legal action. If they do not file a lawsuit within the SOL time, they abandon their legal right to collect.

So why are they bothering you after all this time? Because you don't know your right! You don't know the law! They do!

There is nothing in the law that prevents them from filing a lawsuit against you. But if you understand your rights, all you have to do is inform the judge that the SOL has run out. The judge will immediately dismiss the case.

This is called an "affirmative defense". If you do not go to court and defend yourself, the creditor will automatically win by default, and they can come after you for the money.

Now you understand? A collection agent bought your debt for a couple hundred dollars. He is gambling that you don't know the law, and he can scare you into paying. If that doesn't work, he spends $50-$100 for a small claims lawsuit. In many cases, the debtor does not show up for court....and they win by default. Another $50 and they have a garnishment or lien against you. They collect $6000, and it only cost them a couple hundred dollars. Not a bad days work, eh?

But when you let them know you understand their "playbook" you will be amazed at how fast the go away.

So here is what you have to do. READ THE LAW! UNDERSTAND YOUR RIGHTS!

Read the links below, as it discusses the SOL laws. Then send this "attorney" a demand to validate letter (see the sample in the links below). Be sure to include in it that this debt has run over the SOL date, and that you want them to send you copies of whatever proof they have that you still have a legal obligation to pay it.

Oh, by the way. Many of these people are not attorneys, but simple collection agents. They may work for an agency that has one attorney employed to handle legal stuff. This guy is generally a fairly new attorney right out of school. Because of low bar scores they couldn't get a job for a real legal firm....not good enough to do public defending...too broke to open a private practice...too dumb to be an ambulance chaser...so they become collection attorneys. I've seen a ton of them.

So relax...don't let them bother you because you have the upper hand here. Just read the law!

If you need help or advice contact me.

I think you may need to ask an attorney this question (I doubt if he/she will answer for free), but I do know that there is a 7 year limit for bad debts to show up on a credit report and a 10 year limit for bankruptcies. There may also be a statute of limitations on the time someone can collect on a debt that has been idle for 12 years.

It sounds more like a collections agency is grabbing at straws and reverting to illegal means to collect a long over due debt. This one would be worth fighting over. If nothing else for the principle involved. The credit card company would not hold onto a debt this long and would have written it off on their taxes as a loss. Why it would resurface after 12 years can only be answered by a collection agency who found it and has decided to hound you over it. You can also go to the FTC website and see if there is any information there that will guide you. You might also be able to file a complaint with them regarding this company. But like I said, it most likely isn't coming from the bank that you had the credit card with, it's coming from a collection agency that is trying to scare you into paying.

Actually I thought after 7 years debts were supposed to get

wiped off your record. I wonder if this debt has reached well beyond the statue of limitations. Note: Just one bad credit mark is not going to affect your credit that much. In the meantime if You can maintain good payments to the current credit card companies actually I think you will still come to the better in the long run. See that old company doesn't really

want to pay the attourney's fee's on their side. I think their

just trying to put a scrare tactic on you. If You still worried

and think they really might do something just move to

another county or state.

First of all never admitt to owing anything because that is what they are trying to get you to admit. And what ever threats they are using, it is to scare you into paying their price. I used to work in a collection office and that is what they teach us to do. You can dispute all charges by contacting the 3 credit bureau. When they send letters it means the 7 years when everything can be removed from your credit is approaching and if you admit to having a debt to them, then it will renew for another 7 years and will continue to do damage to your credit.

I agree 110% with Studly. But make sure you do not make any payments! This could start the SOL all over again.

I would look into the legal aspect of this. If you have not been receiving notices to try to collect this money for 12 yrs, I would think there is some kind of statute of limitations on collecting this money. And dont be intimitated by that lawyer...INTIMIDATION is his job!!!!!!!!!!!!!!!