What if a debt that's more than 7yrs was sold to a collection agency and they have started to call you?

Answer 1

The only way a debt older than seven years can be collected on is if that debt is covered under a judgment. In that case, the creditor has ten years from the last payment made to recover the debt. Keep in mind that the clock on limitations does not begin until the time of last payment. For instance, if you took out a car loan and made only the first payment on January 1, 2000, and the creditor was unable to recover the principle or repo the car and you made no other payments and no judgment was ordered, no further collection action could take place after January 2, 2007. If you made any other payments during that time, the clock begins from the time of that payment. If you are receiving calls from a third party agency, get their mailing address and the name of the account collector. Draft a letter explaining that the account is no longer valid per the "Federal Fair Debt Collection Practices Act" and that further contact by their agency will constitute unfair and illegal practices. Suggest that they refer back to their client for justification of the debt, and request that all reconcilations supporting the legality of the debt be forwarded to you within thrity days. Send the letter registered, restricted delivery, return receipt, and keep a copy for your records. If you attempt to do the above by telephone only, the agency is not legally obligated to follow. By letter, however, they have no option but to comply as requested.