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LegalGems
LegalGems, Lawyer
Category: Consumer Protection Law
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I received a call from a pay day loan from 2009 they are saying

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I received a call from a pay day loan from 2009 they are saying I have to pay something or they will serve me with a summons at work. I have received no correspondence since they had an old address and I have not lived there for 10 years. What can I do
Submitted: 1 year ago.
Category: Consumer Protection Law
Expert:  LegalGems replied 1 year ago.
Hi!Customerhere. I'll do my best to assist you.I can only provide general information, so a follow up consult with a private lawyer is recommended.
The statute of limitations for old deb in Minnesota is 6 years pursuant to section 541.05; as such, if the account had no activity since the first half of 2009, the relevant time period would have run.
If last activity was in the latter part of the year, it would be within the statute of limitation time frame, and the creditor can sue in court, provided the amount at issue is less than $15,000: http://www.mncourts.gov/selfhelp/?page=313
If the debt is valid, then they can seek a judgment; if the defendant fails to show after proper service, the court will enter a default judgment, because they will assume the defendant will not contest it (this is common, so it is important to appear to present any defenses).
The plaintiff has the burden of proof in establishing the debt so if the plaintiff cannot prove the underlying debt the court will not rule in their favor.
If the consumer knows the debt is valid and is not contesting it, many prefer to negotiate the sum owing, as it often can be reduced as much as 50% (although it depends on the lender's policy). Also a judgment can be very damaging to one's credit score, so most people prefer to negotiate.
If a reduced settlement is reached, the consumer should be aware that the creditor will issue a 1099c, so that any "forgiven" amount will be written off on the creditor's taxes, and chargeable as income to the consumer.
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Expert:  LegalGems replied 1 year ago.
Here is a link to help locate an attorney:
www.findlegalhelp.org and http://apps.americanbar.org/legalservices/findlegalhelp/home.cfm
Of course, should you have other questions please do not hesitate to post here.
If you found the information I provided useful, kindly rate positive as that is the only way the site is allowed to credit me so that I am compensated for the time I spent- which does not result in additional charges to the customer.
Thank you for extending this courtesy as I am an individual contributor so ratings are quite important , and take care!

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