Legal Question in Credit and Debt Law in North Carolina

Your post suggests that you under some impressions about debts that are not true. First, the original creditor can sell the debt to a junk debt buyer, who now owns the debt. The debt is no longer owed to the original creditor and the original creditor would have no reason to contact you. The junk debt buyer can send the debt to a debt collector or sell the the debt to a new junk debt buyer. This can happen an infinite number of times until you die or the debt gets resolved.

Even though the debt is past the statute of limitations (assuming that the debt was created in NC), the debt never ever goes away. It is still a debt and it is not against the law to try and collect it.

You say that you have disputed this. So? Is this your debt or not? If its really not your debt, what exactly did you say to dispute this? For example, if it was identity theft, do you have a police report to back you up? Or is this your debt and you just disputed it. A debt collector may or may not validate the debt. I have learned that some junk debt buyers have to pay the original creditor for information and that is why they do not send a proper validation. If they want to sue, they will have to get it but since we are past the statute of limitations and they cannot sue, they will not spend the money for the validation and will keep trying to collect.

How long will you have to fight this? Forever until you die and then maybe your personal representative will even have to dispute it. I am not joking. I call these "zombie" debts because they come bck to life. Not all debt collectors and jnuk debt buyers do this, but some will attempt to "re-age" or "refresh" the debt by reporting a date that is more recent to avoid the strictures of the Fair Credit Reporting Act (which allows a debt to stay on your credit report for 7 years from the date of charge-off or when the debt is sent for collection).

I don't know when you last paid if this is your debt so I don't know if the debt is stale or not.

It depends on your circumstances as to what you do. If this is your debt and the debt is old, AND if you will be needing credit in the future, then you may want t think about resolving the debt. If you will not be needing credit (refi, mortgage, car loan or credit card), or if the debt has dropped off your credit report, then you may not want to pay. However, you need to keep disputing whenever the debt arises and keep telling whatever collection agency or junk debt buyer has the debt that collection of the debt is barred by the statute of limitations and that you are not paying. You will also have to be vigilant about monitoring your credit report to make sure that the debt does not re-emerge on your report.

If you decide to resolve the debt, you should be very careful. Make sure that you do not pay until you get a settlement letter indicating that payment of the agreed upon sum will settle the debt and that there will be no further collection efforts. Keep a copy of the letter and any cashier's check (don't pay by personal check) or money order so that if the debt would still possibly emerge, then you will have proof that you paid. Because any part payment will revive the statute of limitations, then you should only pay after you have discussed this with an attorney.

If you would like further assistance in resolving the debt or just in discussing the debt in confidence, I give free email consults. There is a charge of $50 for a 30 minute phone consult or in-office meeting. Please contact me at [email protected] if interested.