Portfolio Recovery Associates, LLC and Capital One

[Ravensfan2001]

I currently have a secured $300 Capital One Mastercard, deposited $149 in May 2012.

Last month, I received a dunning notice from PRA stating I owe $1965.29 for a previous Capital One account. I burned them years ago, maybe 1999??, right after filing Ch7 BK in 1998. I remember having a $300 unsecured credit limit and not learning from my mistakes. I maxed out the card and didn't pay them. I don't plan on paying this account any time in the near future. I have other debts that take priority. And the amount is ridiculous. Is this what you call a zombie debt?

Now, since I have a secured card with Capital One that I plan to close next month before the AF hits, can they take my $149 to apply to the old debt?

And.. do I have the right to stop PRA from contacting me about this debt?

[DaBears]

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@Ravensfan2001 wrote:

I currently have a secured $300 Capital One Mastercard, deposited $149 in May 2012.

Last month, I received a dunning notice from PRA stating I owe $1965.29 for a previous Capital One account. I burned them years ago, maybe 1999??, right after filing Ch7 BK in 1998. I remember having a $300 unsecured credit limit and not learning from my mistakes. I maxed out the card and didn't pay them. I don't plan on paying this account any time in the near future. I have other debts that take priority. And the amount is ridiculous. Is this what you call a zombie debt?

Now, since I have a secured card with Capital One that I plan to close next month before the AF hits, can they take my $149 to apply to the old debt?

And.. do I have the right to stop PRA from contacting me about this debt?

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Cease and Desist Letter 

[Shogun]

Yes, this is what is considered a Zombie debt.  If it is beyond the SOL of your state and the CRTP then that is the proper term.

Like dabears said, you can send them a cease and desist letter to keep them from contacting you.  But remember, they can sell it to another CA.  

[Ravensfan2001]

This is a notification under the provisions of FDCPA 805(c) that you are to immediately cease all further communication with me, either written, telephonic, or via any electronic means, such as email, concerning all matters with respect to this alleged debt.

Good enough?

Now, if they sell it to another CA, just DV then send another cease and desist letter? Then the process starts over again forever? Just wondering if I'm understanding this right...

[DaBears]

Unpaid debt never goes away, It will keep getting resold over and over again. You will have to send another letter each time. 

[Jaxavier]

As others have pointed out, a C&D LTR will/should work on THIS CA, however it won't stop the next one from contacting you.  From what you're saying, it sounds like they're in violation of the FDPCA, specifically section 807 (2)(A) 

(2) The false representation of --

(A) the character, amount, or legal status of any debt; or

This debt is well beyond the SOL (unless you're in Kentucky) and it's the responsibility of the CA to know this and to (included with your miranda rights) have a statement on the notice that because of the age of this debt, collection agency x will not sue you for it nor will they report it to any credit bureau.  If they did not include this, they're violating the provision listed above and could be sued for this violation.  Doing so, or at least sending an ITS might apply just enough pressure for them to not resell this account to another CA and just leave it be.

And no, they cannot touch your $149, even if the debt was still collectable.

[Anonymous]

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@Jaxavier wrote:

As others have pointed out, a C&D LTR will/should work on THIS CA, however it won't stop the next one from contacting you.  From what you're saying, it sounds like they're in violation of the FDPCA, specifically section 807 (2)(A) 

(2) The false representation of --

(A) the character, amount, or legal status of any debt; or

This debt is well beyond the SOL (unless you're in Kentucky) and it's the responsibility of the CA to know this and to (included with your miranda rights) have a statement on the notice that because of the age of this debt, collection agency x will not sue you for it nor will they report it to any credit bureau.  If they did not include this, they're violating the provision listed above and could be sued for this violation.  Doing so, or at least sending an ITS might apply just enough pressure for them to not resell this account to another CA and just leave it be.

And no, they cannot touch your $149, even if the debt was still collectable.

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The FDCPA makes no requirement for the CA to add this to the mini Miranda. 

[Jaxavier]

§ 807.  False or misleading representations  [15 USC 1692e]

A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:

(2) The false representation of --

(A) the character, amount, or legal status of any debt; or

Sending a dunning notice implies that the debt is valid, legal, and collectable.  This is deceptive and misleading to the consumer by presenting the account as something that can still be collected on.  It's not if it's past the SOL.  

[Anonymous]

It is not a requirement to be included with the Miranda.

A debt is a debt and will always be a debt.  A CA can attempt to collect on it forever.  They just cannot sue you and win if you use expired SOL as an affirmative defense.

There are limited states where it is actually illegal to attempt to collect a debt that is beyond the SOL. 

The fact that the SOL has expired does not make the debt uncollectable.

[Jaxavier]

Well that's for a federal court judge to decide. There's one here in the district court, eastern district of PA that seemed to feel it IS a violation. Maybe this is a YMMV.