Collection agency attempting to put item on credit report that out of SOL

[trsharpe27]

I had a capital one credit card back in 2000 (freshmen year of college) and needless to say I defaulted on it in Jan of 2001. The account has since been removed from all 3 of the credit bureaus in Jan 2008, but now I have just received a letter from Jefferson Capital Systems LLC saying that they purchased the debt and they would like to settle it. Can someone anyone, please explain to me how this is possible?The account is over a year past the SOL...What can/should I do?

Please Help 

[Anonymous]

Send a cease and desist and inform them you are aware of your rights, and that the account is past the SOL. Also tell them if they contact you again, except to tell you they are ceasing collection activity, that you will file a suit in small claims court in accordance with the FDCPA.

[medicgrrl]

Even though a collection account is past the SOL and CRTP, collectors may still attempt to collect because you still owe the debt.  They can't take you to court and they can't put it on your credit report.

If you send the C&D letter just know that they can still sell your account to another CA.  My sister has an account from 20 years ago and the companies still call my parents and they even contacted my ex-husband a few weeks ago.  If the balance wasn't much and you have a few extra dollars then you may want to see if they will settle for a couple of pennies on the dollar with an agreement that the account is satisfied and the remaining balance will not be sold again.

[smallfry]

They can take you to court but so long as you appear the SOL defense will get their claim dismissed. If you don't go to court they can win a default judgment. Do not send them anything if your desire is to pay without a pay for delete guarantee.

Message Edited by smallfry on 06-07-2009 11:36 AM

[Anonymous]

As per smallfry, the SOL is not a bar to initiating a lawsuit, only an affirmative defense.  As long as they are not reporting to CRA (which I would check periodically), don't worry.  Personally, I'd trash can the letters until they get tired of sending them.  The problem with making payments past the SOL and CRA reporting deadline, is the possibility of creating a novation (novation takes place by the intervention of a new creditor where a debtor, for the purpose of being discharged from his original creditor, by order of that creditor, contracts some obligation in favor of a new creditor.) Technically, a new obligation date could be created. 

[trsharpe27]

Okay,

So the collection agency can still contact me, but they cannot put it back on my credit report right? The amount of the debt they are saying is owed is WAY over the balance that was due and there settlement offer is to put the balance on a credit card with them and then pay the card off to get a new credit card. I have 2 credit cards, 1 for emergencies and the other for small purchases (which I pay off in full) to build my credit so I do not need or want another CC 

[Anonymous]

If you put it on the CC they are offering you have restarted the SOL and they could sue you.

[medicgrrl]

I got that offer the other day also.  I sent them my own offer   We will see how they respond.  Mine is still within CRTP but outside of the SOL.  I am not about to go for that offer either.  I have read some of the info about that company and the offers and it sounds like there is a lot of legal junk going on with the whole thing.

[MattH]

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@smallfry wrote:
They can take you to court but so long as you appear the SOL defense will get their claim dismissed. If you don't go to court they can win a default judgment. Do not send them anything if your desire is to pay without a pay for delete guarantee.

Message Edited by smallfry on 06-07-2009 11:36 AM

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This varies by State, in most States you are correct -- they can sue but when defendent shows up and invokes SOL they lost.  They often file anyway in the hope of getting a default judgement should defendent fail to appear in court.  But in some States it is illegal for the creditor to file a suit if they knew or should have known the debt was beyond SOL.

[ECHOBOI4U]

Send that letter they suggested to remind them that it is past SOL.  We had to do this a year ago for a 1996 debt that a CA was trying to place on our credit report after 30 days (validation).  Send all letters certified registered mail with return receipt.  That way, if they said that you never sent them any reply, you can nail them to the wall as liars.  We did.  Stay strong.  At this point, time is in your favor.