Legal Question in Credit and Debt Law in South Dakota
Credit Card Debt
On 4/1997 I was contacted by a collection agency to collect a card debt of $3200. I received no other notices and even tried to contact the card owner 3 years ago to find out who owned the account now, however they did not know. Now in Aug/2004 I was contacted by another collection agency trying to now collect on the same debt though now it is $7100.
They told me that my offer of $10 a month was to my detriment and that I really needed to pay the entire debt or make a valid attempt to pay at least $3800 and they would consider the account settled and would notify the credit agencies the account was settled. I then offered them $1500 which would have been half of the original debt minus late fees and interest, which they turned down.
Several states are involved since I lived in MI but the card owner was in SD, however I now live in TX. I have not paid on this card since Jan/98. Everything I have found says that SOL is up and the account will be wiped from my record in 4 more months any way.
Could this be a case of too little too late on their attempt to collect a debt since the SOL has expired? Can they still sue me over this? and am I still stuck to pay whatever they want?
thank you for your help.
1 Answer from Attorneys
Re: Credit Card Debt
The SOL started running when you last defaulted on paying the credit card debt. It sounds as if that date is 1997 or earlier. The SOL for SD and MI is 6 years. Texas is 4. The SOL doesn't wipe out the debt, it only stops the creditor from filing suit.
Write to them, telling them that the SOL has run, you're not going to pay anything, and all further contact is to be in writing ONLY. That should stop the harassment.
The doubling of the debt is the result of compound interest.
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