Legal Question in Credit and Debt Law in North Carolina
My youngest sister owes a heating and air service man for repair he did on her AC unit on 7/1/11. She was supposed to make payments to him, but didn't because she lost her job. The AC repairman has given the account to a collection company in TX; we're in NC. The collector has called me and my other sister trying to get us to pay the bill. We've refused; it's not our debt to pay. The collector is threatening my youngest sister saying they're going to put a lien on her house and foreclose on it (on a $200 debt). I've read that a service provider cannot enforce a lien 120 days past the date of service work. The 120 days is long gone; we've told the collector this and they act very unprofessional and immature and insist they can and they will if neither of us 2 sisters don't pay the bill for our 3rd sister. Is this true?
2 Answers from Attorneys
They can't file a lien if it is past 120 days since the date of last work. They can file a lawsuit against your sister and obtain a judgment against her although it would not be cost effective to do so for $200. Also misrepresentations and harassment could be grounds for a claim against the collection agency for violating fair debt collection practices. I would make a log of all calls, who called, what time, what date, how long, what the content of the conversation was, etc.
First, the collector can only call you or your other sister for the purpose of acquiring "location information" under the federal fair debt collection practices act. You and your other sister each need to write them a letter and send it certified mail to the debt collector and advise them that you are not responsible for the debt and that they are not to contact you any further. Just write down the number and you can google it if you don't know their address. If you know the company name, you can google that too and get the address. Who is it? GC Services? Someone else?
You are not liable for your youngest sister's debts. The debt collector also violated the law by discussing your youngest sister's debts with you or the fact that they are going to put a lien on her home.
There is a difference between a mechanic's lien and a judgment lien. The HVAC repair person could have filed a lien against your sister's property when she did not pay the bill. However, the HVAC person may or may not have known the law or may not have wanted to be bothered. That is the only person who could have filed a mechanics' lien.
A judgment lien has nothing to do with the 120-day rule. If the debt has been sold to a junk debt buyer or even if its still owned by the HVAC company, whoever owns the debt has the right to sue your sister for non-payment of the debt. If your youngest sister lives in NC, then whoever owns the debt has 3 years from the time the bill was owed in which to sue. If suit is timely and results in entry of a judgment, then the judgment serves as a lien on the real property.
Will the creditor or junk debt buyer sue? Probably not for a $200 debt. Its not ethical for me to discuss your sister's issues with you. That said, your sister got the benefit of the work and while I don't usually advocate this, your sister does have an obligation to pay this bill. If she lost her job, that's ok - debts can always be resolved. However, before your sister just pays, she needs to do this in the right way by getting a settlement letter from the debt collector before she sends in a payment of any kind.
I give free email consults and can resolve the debt for a reasonable fee. Please have your sister email me at [email protected] if interested.
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