Legal Question in Credit and Debt Law in Pennsylvania

Re: Debt Collection Past Statute of Limitations

The "contract" your agreement to pay in exchange for the collector to not report, may be void or voidable. The collector had nothing of value and he may have materially misrepresnted facts to get your agreement. You should speak with a lawyer about this . I offer free initial consultations.

Re: Debt Collection Past Statute of Limitations

You asked about collection of an old debt.

Statute of limitations in PA is 4 years for most consumer debt. There are some debts that exceed this, such as agreements under "seal." But even those are subject to some argument as to term. The debt never actually "goes away" but the creditor's right to collect on the debt does. Likewise too does a collector's rights to collect on an old debt.

An old debt cannot appear on a credit report once it exceeds the time for such a debt to be reported (currently 7 years). Moreover, does having an old "ding" on one's credit really affect one's credit. Probably not.

As long as you did not sign any agreement (or send an email in agreement) you can probably ignore this debt. If you have any further contact from this collection agent then you should document the transaction and contact an attorney.

Regards,

Roger

Re: Debt Collection Past Statute of Limitations

You are not obligated to pay anything to this collection agent as it is not legally enforceable. Indeed, there is a case which holds it is a violation of the Fair Debt Collection practices Act to bring suit after expiration of the statute of limitations.

I also question the collection agent�s ability to report this to the credit bureau after all this time. You should consult with an attorney who emphasizes suits on violations of consumer laws.

I am knowledgeable about financing and no lender is going to worry about a debt which is unenforceable. So, as a practical matter, even if reporting were permissible, I cannot see it practically harming your credit.

I trust this has been helpful but feel free to call or E-mail on a free initial basis.

Re: Debt Collection Past Statute of Limitations

Once you called and agreed to pay, the statute of limitations arguably started over, so now you're obligated to pay, which you wouldn't have been if you hadn't done so. In other words, your agreement to pay is a new contract, subject to a new 4-year statute of limitations.

However, if you agreed to pay as a result of their representation that they could put it on your credit report if you didn't, your agreement to pay in exchange for the collector to not report may be void or voidable. The collector had nothing of value to give you in exchange for your agreement to pay, and if he materially misrepresnted facts to get your agreement it would be void. You should speak with an attorney.

The reason I say this is that the collection agency cannot put something on your credit report beyond the time for such debt to be reported (usually 7 years). If the debt is 15 years they couldn't legally put it on your report. Therefore, if that's the case, they could not "agree" to not report it in exchange for your payment.

Also, your conversation about this debt has nothing to do with other debts that are 15 years old.