Legal Question in Credit and Debt Law in New York

collection agency&reprting to credit

My husband has old credit card debt Approx $2500, that is around 6 or 7 years old, and has not been paid since that time. The credit comp recently sold this debt to a collection agency, which both are now being reprted and both on his credit report. We are applying for a mortg, and nerd to clr this up. Can we get these removed from the credit rpt, due to statue of limitations?? Or should we pay the coll agency, Can anything come off? thankyou.


Asked on 1/24/04, 9:52 am

2 Answers from Attorneys
Guy Lewit Guy Mitchell Lewit, Esq.

Re: collection agency&reprting to credit

IF you are right about the age of the debt (and the statute of limitations having run), DO NOT make an offer to pay it off because that alone might void the effects of the statute and you might be liable for the debt. Challenge the validity of the debt with the credit reporting company by letter (certified) they have 60 days to validate the debt OR IT HAS TO COME OFF THE CREDIT REPORT. If the statute has run, the negative credit report MUST COME OFF. If it hasn't run, you have a choice. Do what my colleague suggests or do nothing and see what effect it has on your closing. Maybe a simple affidavit will get you by. MAKE SURE IF YOU DEAL WITH THE COLLECTION AGENCY YOU GET ANY SETTLEMENT OFFERS FROM THEM IN WRITING AND MAKE SURE IT IS CLEARLY WRITTEN (SO THERE ARE NO "MISUNDERSTANDINGS"...) DO NOT LET THEM TELL YOU TO SEND FUNDS FIRST...THEY HAVE TO PROVIDE YOU WITH A SIGNED DEAL FIRST...for your protection

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Answered on 1/25/04, 1:46 am
Robert R. Groezinger GroezingerLaw P.C.

Re: collection agency&reprting to credit

Call them. Do not tell them that you are buying anything. Ask them how much they will take of you payit off lump sum. If you can swing it, pay it off now at the reduced amount, with a letter from them dtating beforehand that they will take the reduced amount in full saisfaction of the debt. If not now, get the same letter, give it to the bank and ask if you can pay if off at clsoing, since they know about it. Same rules apply about the reduced amount and the writing.

Any other questions about that and the home purchase, feel free to call me at 212-764-5428.

Good Luck

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Answered on 1/24/04, 9:59 am


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