Haunted by old debt - please help?

Car got repossed in 2002 due to unemployment. It magically appeared on my report under a new collection agency – 4 years later – in essense reaging the debt. I asked for validation of debt – they sent it to me 2 months later. In 6 months, they have sent me 2 letters, the letter stating they had the account and the validation letter. They have never called me, but they are on point every month when they deface my otherwise-good credit report. Do I have any options? They don’t seem to want to negotiate a smaller sum, and 4 years later seems ridiculous to be asking for a full amount.





I have been thinking about a lawsuit. Been doing a lot of research and have been learning that this is becoming a huge national trend. And yet there seems to be no vocal support for the consumer. Do u know any org's that advocate consumer financial rights with some clout in Washington perhaps? Any one have any suggestions on my issue?

Haunted by old debt - please help?
Get in touch with your creditors and make a payment plan with them let them know you are willing to pay so much each month and you could get several jobs inorder to get your self straight or else you will forever be haunted with old debts,
Reply:You need to check your state's statute of limitations by going to http://www.creditinfocenter.com/rebuild/... 4 years may be the limit; therefore their claim is legally invalid. When they validated the debt, you actually received a copy of the original contract? If you don't plan on applying for any lines of credit, I suggest waiting for it to fall off your credit report.
Reply:From your description it doesn't look like you have a case.





True, the collection agent must notify you prior to collection efforts. This gives you a 30 day "stay" preventing them from taking collection action. But now that the 30 days is up, they are clear.





Their defense will be that they sent the notice by 1st class mail to the last known address. Post office must have lost it. They are not required to use certified mail for this notice.





Next, you have the right to demand validation. This does not stop them from collecting from you, it's mainly a tool to get a credit item removed from your credit reports. And since you claim they did validate the debt (2 months later) that have them covered.





At best, you could sue them for not having the validation within 30 days, but unless you have a very liberal judge it's not going anywhere. The debt was correct, the listing is correct, and the judge will be very unhappy you are wasting his time.





Debts can be reported on your credit for 7 years, beginning on the date of the delinquency. So I don't see where you have any case against this CA. Sorry.
Reply:First things first: don't pay them anything. The original creditor wrote it off as a loss, and they bought the debt. You don't owe them...paying it will not do nothing for your credit, and after 4 years, you're right, if they aren't going to negotiate then too bad. Let them update the status of your credit every month if they want to....they are just trying to get you to bite. Don't fall for it.





Speaking of status, this won't re-age the debt. When a debt goes to collections, every collection agency MUST provide the date of 1st delinquency of the original debt, so it doesn't remain on your reports longer than the 7 year time frame. If you can't get it off by disputing or writing the BBB, I would wait out the time. A paid charge off is not much better than an unpaid one, and you can still get a mortgage with unpaid charge offs, as long as they are over 2 years old.





I would spend my hard earned money elsewhere as opposed to paying a 4-year old debt.

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