Legal Question in Credit and Debt Law in Virginia

Re: Collection account

First, as to your question on the Statute of Limitations: under federal law, the creditor can sue either where the debt was incurred or where the debtor lives. What that means is that the creditor has a choice of Statutes of Limitations. Very often, they're about the same, so the creditor will usually sue where it's most convenient for the creditor; besides which, the defense of Statute of Limitations is an "affirmative defense", which means that the defendant must file written pleadings specifically asserting that defense. That means the creditor can get a default judgment against the debtor years after the SoL has expired, if the debtor isn't in a position to get actual knowledge of the suit. In Virginia, that can be grounds for a motion for rehearing, but then the burden is on the debtor not the creditor. So don't rely on the SoL being any kind of bar to either a lawsuit or a bad credit reference - it's still a good case for the creditor unless and until the debtor pleads and proves the SoL applies.

Secondly, you said the creditor "sold" the debt to an "agency". This is usually a dodge to get around the Fair Debt Collection Practices Act. Unless and until the "agency" provides some evidence of a valid assignment with non-contingent payment having already been made to the creditor, I'd treat them like an ordinary collection agency. Send them a written demand for verification of the debt denying the claim. You're supposed to do that within thirty days of the communication from the debt collector (and it has to be in writing - make sure you keep a copy and get a certificate of mailing from the post office).

Finally, if they agreed to do something to settle the claim in exchange for money which you paid, and then they didn't do it, you've got an action against them for breach of contract. SoL on an oral agreement in Va. is three years.

Re: Collection account

If the agreement to provide the service was entered into in PA and the service provided and consumed there, I think the PA statutes of limitation would be used. The PA statute of limitations for a contract is 4 years, the general statute is six years. In PA if you specific acknowledge a debt, promise to pay or partially pay a debt, the limitations period stops running and then you have to start counting the time anew, all over again from any one of these acts. You shouldn't give these bill collectors any info. Ask them to verify the debt by sending you written evidence of it and of their purported assignment. Tell them not to call anymore or you will sue them for violating your rights under the Fair Debt Collections Act. Keep a diary of when they call you.

The credit bureaus are not allowed to report any debt for more than 7 years under the Fair Credit Reporting Act, regardless of the statute of limitations.