Legal Question in Credit and Debt Law in California
statue of limitations debt collection
I lived in California 12 years ago and had opened a checking account at a local bank. I wrote a check for more than I had in my account, but the bank covered it. I moved back to Michigan shortly after that and never thought twice about it. I recieved a letter from a ''financial services company'' 11 years later with a settlement offer. I have never heard anything about this debt until now. Isn't the statute of limitations for debt collection 4 years? Will this affect my credit score? I have never seen anything bad on my credit report.
2 Answers from Attorneys
Re: statue of limitations debt collection
Your are correct in that the statute of limitations has long since expired. I would send the collection gency a letter telling them that you are disputing the debt under the provisions of the Federal Fair Debt Collections Practices Act. I would further instruct them never to contact you again and send the letter certified mail. If they do contact you again, then contact a local attorney about what claims you might have against this collection agency.
I would also get a copy of your credit report to monitor it for any incorrect entries. Go to www.annualcreditreport.com and you can get a free copy.
Re: statue of limitations debt collection
Yes, the statute of limitations is 4 years. They cannot legally force you to pay at this point. It is legal, however for them to ASK you for the money -- they can't file suit on it.
A number of companies buy old, uncollectable debts, then send out letters asking for payment. Enough people pay voluntarily to make it worth their while.
If you just respond with a letter saying, "I'm not going to pay, it's beyond the statute of limitation," you will probably never hear from them again.
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