Legal Question in Credit and Debt Law in Massachusetts
old credit card debt collection
my husband has a 19 year old store credit card debt that has not shown on his credit report since the 7 year time period. It has been purchased at least 2 times by old debt purchasing companies within the past few years each time offering several settlement offers for a one time payment to consider the debt settled in full with no further obligation and a letter stating this, otherwise they will review the account and proceed with appropriate collection efforts in accordance with the law for the full balance. We have considered accepting the settlement offer but up to this point have ignored the letters on advice of family. We believe that it has reached the statute of limitations in our state to collect on legally but would like to pay the one-time settlement to be rid of the letters and phone calls. we have read that making even the smallest payment on an old debt can renew it and allow the company to once again be able to collect in court for the full amount plus interest. While we may be able to pay the settlement payment we would not be able to pay the full amount. I guess we are afraid this letter could be some sort of trick. Can they do that and should we go ahead and pay it?
3 Answers from Attorneys
Re: old credit card debt collection
You should contact an attorney immediately. Although the debt is not collectible, that will not stop them from trying.
Please give me a call if you would like some assistance in discharging this debt.
Re: old credit card debt collection
The letter is likely a trick. The statute of limitations on a credit card debt (ie. a contract) in Massachusetts is 6 years from the date of DEFAULT or the LAST PAYMENT (if you subsequently tried to make a "good faith payment", you reset the S.O.L.) Bear in mind that once debt is sold on the secondary and tertiary markets, often multiple companies buy the same debt and try to collect on it.
Re: old credit card debt collection
Pursuant to Massachusetts law, the statute of limitations on a credit card debt is six years. Generally, a debtor can reaffirm his/her obligation to pay a debt and restart the statute of limitations on an expired debt. I would recommend consulting with a Massachusetts attorney to assist you in discharging this debt.
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