Collection company to sue me?

[mbauza]

I got a call from a collection company in regards to a payday loan I had in Florida back in 2005/2006 from a company.  They said they were trying to contact me because it's been 5 years and most likely they want to proceed with legal action.  I don't see the collection company on my credit report.

Is it possible for them to proceed legal action? I may consider filing for BK so I don't know if they have a valid claim. I just don't want to be sued.

Thank you.

[llecs]

On the surface, I believe that the SOL for FL is 5 years. You need to figure out when you signed that agreement. I'd look through old accounts or paperwork to see when you received that money. In some states, a payment can reset SOL assuming you made one, but you'd need to read FL's statutes to see if that holds true. If it was from 2005, and you didn't make any promises to pay aside from the agreement or payments, then you are OK.

How much is owed? The cost to file BK could easily be more than the cost of the debt.

[MissMia75]

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@mbauza wrote:

I got a call from a collection company in regards to a payday loan I had in Florida back in 2005/2006 from a company.  They said they were trying to contact me because it's been 5 years and most likely they want to proceed with legal action.  I don't see the collection company on my credit report.

Is it possible for them to proceed legal action? I may consider filing for BK so I don't know if they have a valid claim. I just don't want to be sued.

Thank you.

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In all actuality, I would be more inclined to DV this CA.  I am quite sure they do not have proof of the debt. 

[GregB]

You reference to "payday loan I had in Florida". Does that mean you left FL? If so that could mean the clock stopped running on SOL when you left the state and would only start running again if you return. You would need to check the laws for FL.

[mbauza]

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@GregB wrote:

You reference to "payday loan I had in Florida". Does that mean you left FL? If so that could mean the clock stopped running on SOL when you left the state and would only start running again if you return. You would need to check the laws for FL.

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Correct, I left Florida in Feb 2006 and have not returned. I reside in NY now.

[mbauza]

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@llecs wrote:

On the surface, I believe that the SOL for FL is 5 years. You need to figure out when you signed that agreement. I'd look through old accounts or paperwork to see when you received that money. In some states, a payment can reset SOL assuming you made one, but you'd need to read FL's statutes to see if that holds true. If it was from 2005, and you didn't make any promises to pay aside from the agreement or payments, then you are OK.

How much is owed? The cost to file BK could easily be more than the cost of the debt.

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To be honest, I don't even remember. However, they say it's $1000 that I have to pay them. I wouldn't be surprised if it had a bunch of added fees as well

I'm probably filing BK because I have about 60k to 70k worth of debt.  (long story)

[JM-AM]

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@mbauza wrote:

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@llecs wrote:

On the surface, I believe that the SOL for FL is 5 years. You need to figure out when you signed that agreement. I'd look through old accounts or paperwork to see when you received that money. In some states, a payment can reset SOL assuming you made one, but you'd need to read FL's statutes to see if that holds true. If it was from 2005, and you didn't make any promises to pay aside from the agreement or payments, then you are OK.

How much is owed? The cost to file BK could easily be more than the cost of the debt.

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To be honest, I don't even remember. However, they say it's $1000 that I have to pay them. I wouldn't be surprised if it had a bunch of added fees as well

I'm probably filing BK because I have about 60k to 70k worth of debt.  (long story)

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If you file BK and they are not listed on Credit Reports and you have no records of the debt then they couldn't be included in the BK. You would need something from them with account numbers and fees in writing from them to validate the debt to include in BK. 

[Anonymous]

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@JM-AM wrote:

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@mbauza wrote:

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@llecs wrote:

On the surface, I believe that the SOL for FL is 5 years. You need to figure out when you signed that agreement. I'd look through old accounts or paperwork to see when you received that money. In some states, a payment can reset SOL assuming you made one, but you'd need to read FL's statutes to see if that holds true. If it was from 2005, and you didn't make any promises to pay aside from the agreement or payments, then you are OK.

How much is owed? The cost to file BK could easily be more than the cost of the debt.

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To be honest, I don't even remember. However, they say it's $1000 that I have to pay them. I wouldn't be surprised if it had a bunch of added fees as well

I'm probably filing BK because I have about 60k to 70k worth of debt.  (long story)

---

If you file BK and they are not listed on Credit Reports and you have no records of the debt then they couldn't be included in the BK. You would need something from them with account numbers and fees in writing from them to validate the debt to include in BK. 

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Actually, all you need is a name, address and dollar amount.  Anything else can be stated as unknown.

[RobertEG]

The party who owns the debt has the right to file action with the courts for its recovery.  If the OC still owns the debt, and has given the debt collector the authority to pursue legal action on their behalf, yes, the debt collector can bring such action on their behalf.  If the debt collector owns the debt, they dont need any authority, as they would be acting on their own ownership.  Not knowin who owns the debt, it is not clear who the principal would be in any legal action, but that does not really matter.

Expiration of your state SOL is certainly something you need to know should you have to appear in court.  It does not preclude their initiation of legal action, but if SOL has expired, and you show up in court and prove its expiration, you will be awarded summary judgment without consideration of the action on its full merits. So I would definately begin to investigate a possible SOL defense.

[dharalex]

I don't know what others think, but I believe it's unlikely for them to litigate you for $1000, especially with all your debt. However, legally, the owner of the collection can if he choses. At 5 years, if the SOL is up, they may be just doing all they can to recover anything. I agree with the DV. Any payment or activity could reactivate it and cause more trouble so I wouldn't do anything until you are clear on whether it truly is your debt and can this company prove they own it.