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TexLaw, Attorney
Category: Legal
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Experience:  Lead trial/International commercial attorney licensed 11 yrs
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I apparently have a credit card debit from 1997 that accrued

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I apparently have a credit card debit from 1997 that accrued to $12,643 dollars as of April of 2004, and was charged off by two different credit card companies, I have had no communication with them since 2004 and I now have DRS collection agency on my tail about this old debit. They said the amount owed is $18,965.50. I believe I opened the account in Maryland in 1997, and now live in Washington state. What is a good course of action to take form here? I told the guy I am not making a payment but I am making some phone calls, I never had a credit card in my life with a balance or limit over $7500 bucks...

Thanks :)

Gary

ZDNLaw :

Hi Gary

ZDNLaw :

Do you remember the last time you made a payment?

ZDNLaw :

Are you there Gary?

Customer:

I havenbt used a credit card cince 2001.

Customer:

since

Customer:

Busy day. They said last payment made to them in 2004.

ZDNLaw :

OK, great.

ZDNLaw :

The statute of limitations prohibits this debt from being collected.

Customer:

I have no clue how it got to $12000 bucks or 18000 for that matter

ZDNLaw :

Or rather prohibits them from suing you for it.

ZDNLaw :

They are adding interest to it.

Customer:

OK I read that much earlier

ZDNLaw :

The good news is that you do not legally owe it

Customer:

Can they add interest to a debit that they took a tax credit loss on over 13 years ago?

ZDNLaw :

They can try, but they cannot force you to pay it. The real question here is how to make the debt collector go away.

ZDNLaw :

Under the Federal Fair Debt Collection Practices Act, you can tell them to cease all collection efforts and try to prove their right to payment in court.

Customer:

When a company Writes the debit as a charge off, they take a tax break from teh government don't they?

ZDNLaw :

You have an absolute defense to this, so you would win any case. And yes, they do that, and you are generally sent a 1099 for the write off

Customer:

I've not received anything like that not now nor years past. So I can basically tell DRS to jump ship and take me to court?

Customer:

In additrion to that I can monitor my credit to make sure it don't show up there? If it does what are my possible actions?

ZDNLaw :

Yes. Here's what you need to do. Get their address and the account number they are using for your account.

Customer:

They gave me the original credit card number over the phone.

Customer:

is that good enough or do I need their account number for me?

ZDNLaw :

Send them a certified letter that says "this account is not collectible and is barred by the statute of limitations. Please cease and desist further communication with me. If you do not comply I will file suit under the Fair Debt Collection Practices Act."

ZDNLaw :

You can use the original credit card number.

ZDNLaw :

Also, you need to dispute the account on your credit report.

Customer:

Sounds like I got my money's worth today!

ZDNLaw :

Glad to here that! The credit reporting agencies all have portals through which you can state your dispute.

ZDNLaw :

You can either log on, or send them all a dispute letter (which is the preferred method).

ZDNLaw :

Would you like me to get you the addresses for where to send the dispute letter for the credit reporting agencies?

Customer:

Log onto where?

Customer:

the credit reporting places?

ZDNLaw :

Yes. There are three agencies which report credit. This is where your credit score comes from.

ZDNLaw :

I'm going to find a link that gives you a sample letter to send to them\

ZDNLaw :

And I will also give you their mailing addresses.

ZDNLaw :

You want to do this because you don't want the invalid debt on your credit report.

ZDNLaw :

It may not be collected or reported if it is more than 7 years old

ZDNLaw :

Here is a link with the sample letter (at bottom of page).

Customer:

I don't think they are on my credit report, but I will send the letters to all of them.

ZDNLaw :

Its a good idea just to be safe. The addresses to the 3 agencies may be found here:

ZDNLaw :

Is there anything else I can do for you today?

Customer:

You can go have a fekin cold one on me after work! :)

Customer:

I seriously nearly schitt when he said I owe them $18 grand and would I like to write a check or pay over the phone!

ZDNLaw :

That is definitely on the to do list. I bet. They can be real bstrds, especially when they insist you owe something that you don't

Customer:

Yup!

Customer:

Well thank you. I am going to copy all this and mail it to myself and start the process you suggested. THank you very mcuh.

Customer:

much.....

ZDNLaw :

You are welcome. Please make sure to rate my answer positively after we finish here (that's how I get paid from the website). Have a good one. -ZDN

Customer:

Next page told me unauthorized access and was blank

Customer:

hope it went through.

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