I just received a letter from a collection agency for a credit card I had in 2002. I also have messages on my cell phone saying they are ready to take legal action. What should I do?
Before paying off the debt, you should first check whether the Statute of Limitation on the debt has expired or not. If the SOL has expired then the creditor cannot take legal action against you. SOL starts after 6 months from the date you have made the last missed payment towards the debt and its duration varies from state to state depending upon the state where you have signed the loan agreement. Now, if the SOL has expired and you make a payment towards the debt, the SOL will rewind and the creditor will get the right to collect the debt legally.
You should send a debt validation letter within 30 days from the date of receipt of the collection letter. Now before proceeding further to collect the debt, the creditor must validate it within 30 days from the date they receive your letter. If you do not send a debt validation letter through certified mail, the debt will be considered valid. You can find a sample debt validation letter if you visit the link letters of credit. Would you kindly tell me the date of your last payment towards the credit card debt and the state where you have obtained the credit card?
Since you have made the last payment in 2002, the SOL might have expired and so you should not make any payment towards the debt as it can restart your Statute of Limitation and you may get sued by the creditor for the debt.
Can you tell me the state where you have obtained the credit card so that I can tell you whether the SOL has expired or not?
If the SOL has expired, the creditor can take no legal action against you to recover the debt.
If you DO try to take care of the debt, and the SOL ALREADY expired, you will be 'Re-Aging' the SOL time ( which means you will be starting the SOL over) and you sure don't want to do that!!
The Statute of Limitation in California is 4 years and so if you had made your last payment in 2002, the SOL has expired and the creditor cannot do anything to recover the debt, provided you do not make any payments to them now. If you make even a small payment, the SOL will restart and the creditor can again sue you for the debt. SOL sets the time limit within which the creditor can legally collect the debt.
Before paying off the debt, you should first check whether the Statute of Limitation on the debt has expired or not. If the SOL has expired then the creditor cannot take legal action against you. SOL starts after 6 months from the date you have made the last missed payment towards the debt and its duration varies from state to state depending upon the state where you have signed the loan agreement. Now, if the SOL has expired and you make a payment towards the debt, the SOL will rewind and the creditor will get the right to collect the debt legally.
You should send a debt validation letter within 30 days from the date of receipt of the collection letter. Now before proceeding further to collect the debt, the creditor must validate it within 30 days from the date they receive your letter. If you do not send a debt validation letter through certified mail, the debt will be considered valid. You can find a sample debt validation letter if you visit the link letters of credit. Would you kindly tell me the date of your last payment towards the credit card debt and the state where you have obtained the credit card?
The last payment was in 2002. I got the credit card through my college, it was an associates VISA.
Since you have made the last payment in 2002, the SOL might have expired and so you should not make any payment towards the debt as it can restart your Statute of Limitation and you may get sued by the creditor for the debt.
Can you tell me the state where you have obtained the credit card so that I can tell you whether the SOL has expired or not?
If the SOL has expired, the creditor can take no legal action against you to recover the debt.
California
I got the card in California
credit
If you DO try to take care of the debt, and the SOL ALREADY expired, you will be 'Re-Aging' the SOL time ( which means you will be starting the SOL over) and you sure don't want to do that!!
The Statute of Limitation in California is 4 years and so if you had made your last payment in 2002, the SOL has expired and the creditor cannot do anything to recover the debt, provided you do not make any payments to them now. If you make even a small payment, the SOL will restart and the creditor can again sue you for the debt. SOL sets the time limit within which the creditor can legally collect the debt.
credit
OP..have you checked your Credit, to see when the 'Fall-Off' ( the date it will come off your Credit)? yea....don't pay anything on it now.