HELP: 10 year old credit card chargeoff. Just got collection letter?

[gldn83]

I have a question concerning a collection letter my husband just received from a collection agency. It is for a credit card that was charged off at Armed Forces Bank in 2004.There has been no action since then, but the collection agency just sent a letter out March 7th. What is the best way to handle it?

is this even legal after 10 years?

[xXIDaShizIXx]

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@gldn83 wrote:

I have a question concerning a collection letter my husband just received from a collection agency. It is for a credit card that was charged off at Armed Forces Bank in 2004.There has been no action since then, but the collection agency just sent a letter out March 7th. What is the best way to handle it?

is this even legal after 10 years?

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I don't believe it is legal after 7 years.  Don't respond to it and dispute it with the credit reporting agencies. Don't take my word for it just yet, wait until other chime in first.

[starry1]

They can try to collect forever, its perfectly legal.  What they cant do is report.  They probably can't sue depending on your state's sol.  Check your state's sol and if you're outside of it, then you can ignore the letter.

[xXIDaShizIXx]

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@starry1 wrote:

They can try to collect forever, its perfectly legal.  What they cant do is report.  They probably can't sue depending on your state's sol.  Check your state's sol and if you're outside of it, then you can ignore the letter.

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Just for my personal reference, I thought they couldn't sue after 7-10 years in any state?

[gdale6]

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@xXIDaShizIXx wrote:

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@starry1 wrote:

They can try to collect forever, its perfectly legal.  What they cant do is report.  They probably can't sue depending on your state's sol.  Check your state's sol and if you're outside of it, then you can ignore the letter.

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Just for my personal reference, I thought they couldn't sue after 7-10 years in any state?

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Not true, they can sue and it is up to you to use the SOL as your affirmative defense. Not many will do it once SOL passes as they know they cant win if the SOL is used but there are more uninformed people than informed and it is a calculated scare tactic to get one to pay the bill... There are only 2 states that once the SOL is reached the debt is formally dead (WI & MS)

[gdale6]

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@gldn83 wrote:

I have a question concerning a collection letter my husband just received from a collection agency. It is for a credit card that was charged off at Armed Forces Bank in 2004.There has been no action since then, but the collection agency just sent a letter out March 7th. What is the best way to handle it?

is this even legal after 10 years?

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As already stated they can attempt to collect forever but if this is past your states SOL you can do the following: 1. Ignore it; 2. Send a C&D letter 3. Send a FOAD letter.

[gldn83]

If we ignore it what grounds can we use if the collection agency reports it to the credit bureaus?

I am in N.C and we are outside of the SOL for the original chargeoff, but does that count for the collection agency as well?

[Jedimaster]

As others have mentioned, a collection cannot be reported no more then 7 years , and after it must be remover from all credit reports, nothing can reset the clock on this no matter what anyone tells you

most probablbly your debt has passes your states SOL, but be carefull not to speak with a collection agency over the phone, any admition that this debt is yours could reset the SOL clock 

[babychick02]

It's no longer a valid debt.  DO NOT communicate with the CRA-they are just trying to scare you and make some money. If they continue to harrass you, get an attorney to draft a cease and desist letter and inform the CRA that they are violating federal laws regarding Fair Credit reporting and have your attorney send a copy of that letter to the agencies that monitor violators of credit reporting and collections.