There is a good chance that if they do own the debt, the OP just reset the clock on the statute of limitations by making either a payment or a promise to pay, both of which he did.

So, if they do own the debt, and he reset the clock in this matter, they now can take him to court and win.

Funny, there was a thread like this on fatwallet a few weeks ago.

Basically, you need go get a lawyer. From what it sounds like, most lawyers who deal with these kinds of cases do it for free, because they extract their payment from the company in question.

@stopNgoBeau: I was wondering about that too. I don't know where I read it, but I did read somewhere that even admitting to the debt resets the clock. Is this true, Ben?

The reader mentions something about a judgment. Was this debt reduced to a judgment at some point? If so, then the "statute of limitations" is irrelivant. Civil judgments in California are valid for ten years, and may be extended for an additional ten upon a simple application to the court. Additionally, if the debt has been reduced to a judgment, because of interest at the legal rate of 10% per annum, he now owes more than double the original amount.

@stopNgoBeau: Since the collectors violated the law by threatening jail time, I would be surprised if a judge upheld anything that flows from that as valid.

Is there ever a reason to talk to debt collector on the phone?

Of course, that also means that since they violated several laws they will have to pay his debt for him.

Oh, wow... I totally know that guy in the picture you guys used.

Next time they call, tell them you will only communicate with them via mail from now on

Ben took the words right out of my mouth. There's no reason to talk to anyone who calls your house. If it's important, that's what mail or fax is for.

If he made a good-faith payment, doesn't that make the debt "alive" again? I thought that was a common tactic of collections agencies -- convince someone to make a minor payment on a dead debt to allow them to make it active again.

1) He did reset the clock on the SOL by making a payment
2) The SOL does not mean someone cannot sue you it just means that if they sue you have a built in defense in court to get it thrown out.
3) I'd find a local lawyer and sue them for their violations... naca.net has em.

@stopNgoBeau: if the OP did reset the clock, it really doesn't matter, since he wants to pay the debt, despite the statute of limitations. The only problem that i could see with that is if they then went after him for the $5000+ they originally claimed they were owed, despite agreeing to only collect $1500. Anyway, most shady debt collectors (and these ones sound kind of shady) probably don't want to end up in court, where their collection tactics may come under scrutiny, and they could possibly lose their case if they don't have proof of ownership for the debt.

@FDCPAGuy: @Red_Flag: @Crabby Cakes: Pretty sure the FTC says "resetting" the debt clock is a myth, see this post: [consumerist.com]

What about them sending you a offer like this.

Years ago (16) I had a Amex card. I had problems. Anywhoo I started to get offers to help me pay this off. What and how you may ask?

Sign up with them for "THEIR" card. They would give me a CL+$500 over what I own them. Hmmm? Lets see. What what about their fees?

In anycase you can see what its all about. They cannot get it, it was charged off and if I would have said yes well.

The OP's report indicates that they have a judgment against him. Thus, as stated above, they have 10 years to collect, plus an easy 10 year extension. Moreover, if the debt collector owned the debt, then got a judgment for the amount, the FDCPA probably doesn't apply. They are no longer a 3rd party debt collector for Discover, but an original judgment creditor.

@Pylon83: They say they have a judgment, but haven't provided any proof.

@Ben Popken:
But he also doesn't know that they don't have one. I think it's at least a point that warrants evaluation, because the entire situation is vastly different if they do indeed have a judgment.

@Ben Popken:
The FTC information only goes to what's actually reported on your credit report. The fact an item rolls off your credit report does not necessarily mean that it's no longer a valid debt.

Without more specific information it is hard to give objective advise on this matter.

If it is a judgment you may want to try to settle it or let the judgment run out. Check with the county recorders office where the judgment is filed.

If this is a debt that was charged off and they never sued you, you don't really have to worry about it and send a cease and desist letter.

As previously mentioned the SOL may have been reactivated by making the good faith payment. So it is hard to give the right answer.

Also you may want to check out the FCRA if they are reporting it on your credit incorrectly. I am assuming since you have such a high FICO though that this debt is not reporting.

Again without more clarity the actual answer to this person is vague at best.

Yes, he probably reset the statute of limitations on the debt, which would allow the debt collector to continue collecting. Mistake.

On the other hand, if they threatened him with jailtime, that is an FDCPA violation that has nothing to do with whether or not he owes the debt. If he can prove that threat, he can sue under the FDCPA.

However, I did not see him say that they threatened him with jailtime, just with taking him to court.

It's admirable that the OP wants to pay this off and own up to his responsibility, but appalling that they want so much more money than he originally owed. We all make mistakes and it's rare in this day for people to own up to them when they can wheedle out of it.

Four years seems like an awfully short statute of limitations on a debt like this. Escaping responsibility for your debt shouldn't be as easy as waiting things out for a little while.

If they are the orginal creditor and own the debt then yes they can sue and threaten to sue you that is there right by the law. The only people who cannot sue are 3rd Party Collectors but anything in house they have every right to sue you as a debtor.

Honestly, as a Collector the way this guy is speaking he is a debtor but he is a good guy who happened to have gone through a hard time. I would of offered him a good faithment and to cut his debt in half if he managed to pay half within the month.

If he pays anything over a thousand in a month he has a better chance of settling the debt.

They did not violate the FDCPA and debtor collectors have to be rough but also ethical. Remember, you owe them money and they have every right to get that money back.

The man wants to pay it back, thats good but sir you should note debt collectors are NOT customer service. They do not have to be nice, they do not have to talk to you with respect. You are a debtor but you know if you offered to pay the debt back within the month I myself would of gave you more respect and offered you a settlement

@Crymson_77:

As long as they are not a 3rd Party Collection Agency they have every right to sue according to the FDCPA

@timmus:

Yeah I love those people who only want to be contacted via mail once they go into that long process, so then I make them go into a long legal process by suing them got to love debtors ^_^

1. The collector stated there was a "Judgement amount", not the OP. I doubt he would be this much in the "700 Club" with an active judgement on his CR.

2. You cannot "reset" the SOL on a debt that is past the SOL. Simple as that.

3. This is a typical tactic of one of the boiler room Junk Debt Buyers. If they owned actual judgement paper on him, they could get easy money (garnishment, attaching bank accounts) without resorting to these sleazy tactics.

4. You still cannot "reset" the SOL on that old of a debt. Have I said that before?

5. OP, get yourself a good attorney experienced in FDCPA and dealing with these slimeballs. Enjoy the money you get in court. You may not get the hundred bucks back, depending on how long you sent it to them and what form of payment, but you will get more than that in violations and the satisfaction of making a creepy JDB pay up.

I had a similar situation a few years ago.

I was going to school and when I filled out my FAFSA that year, I mistakenly indicated that I was a ward of the court.

It wasn't until the first semester was over and I went to get my books for the second semester that I found out my account was in the negative, not the positive. After researching, I found out what had happened and corrected the FAFSA for the second semester, but they would not award me for a semester that had already lapsed. This left me owing the university $2400.

At that same time, I became layed off from work for 6 months and as such, could not afford even a dime to pay on the debt and cancelled all my classes until I could get it sorted out.

As soon as I got back to work, a debt collection agency called. I explained that I had no money. She was able to wrangle about $400 out of me over the next 6 months through repeated calls and harrassment. When my car broke down after that, I again was completely broke. She again called and I offered her every last cent in my bank account which was about $52. She told me it wasn't enough and threatened to have my wages garnished. I told her to do what she had to do and hung up.

I haven't heard from them since, but am very worried that they will eventually take me to court over the debt.

It does show on my credit report, and I would be more than happy to take care of it now as I am in a much better place financially, but when I try to contact the number listed on my credit report, it comes back disconnected. The companies name is not listed either. I don't know what to do about it. The last phone call I had was back in 2004.

@ShariC:

Its not appauling if your late on something you signed up and had a legally binding agreement if you miss payments that you'll owe fees.

For example US BANK each and every day your in the red there is a seven dollar fee and some people don't like that and they wait a couple months till that has turned into a 4,000.00 debt.

Again if the man is willing to pay it all off in a month, I would of offered a settlement. You want to make a good faith payment and also pay off your debt in a month, let me speak to the collections supervisor and make sure to approve this.

@OggJoshua:

Yes, you can settle your debt whether its with the credit agencies or check systems plus you can also settle your debt which can be hard to do

IF they own the debt.

Make them prove it first. As the original article says, you don't want to pay these people off and find out they were scammers....and you really owe the money to somebody else.

@waybaker: Challenge the entry on your credit report. If there is a legitimate, existing agency that owns the debt, they can speak up to say "no, this is a legitimate debt," and then you can work it out with them.

@Pious_Augustus: If the original creditor was Discover and the collection agent is RSI Claims Process Services, LLC, I am at a loss to see how that does not fall under "3rd Party Collectors".

@mannyv:

Most lawyer's love collectors because they get paid by the hour and believe me they are not going to wait and hope they get paid by a debtor who is shown they cannot be trusted.

Most debtors lawyers end up abandoning them because they are not getting paid or late payments and every time we call its per the hour and by right if you do not want to give us your lawyers number we keep calling

@Red_Flag:

Because if it's an old debt they bought the debt so offically it's there debt now.

@Pious_Augustus:
And if there is a judgment against him, their position as original creditor is further solidified.

@mythago:
It can be difficult to get them to send you proof of the debt by asking. Get their address and mail them a letter demanding proof that they own the debt, or proof of the judgment.

@Pylon83:

Actually a collector has to send you a letter claiming they are collecting and who they are. That's per the law and to safe guard them but they do not have to keep sending out copies because you keep losing the mail

@mythago:

It is an legitimate debt, for one it's not no one's fault he went to collect believing in the hype it will make you set for life. Also it's not the creditors fault you as a debt messed up and checked the wrong thing screwing someone else out of their money.

You went to college and you'll most likely owe money your entire life, hopefully you wont inspire your kids telling them college is the way to go

IF this "collection agency" did indeed threaten the OP with jailtime then they obviously violated the FDCPA since they hare a third party collector. However, as previously mentioned OP needs to request proof of debt and request all further communication be sent via mail or fax for record purposes. These folks who were unable to find a real job will say just about anything to get a weak willed individual to pay up. My ex was horrible at managing her finances and was constantly getting calls from debt collectors and these people are a real piece of work. Even AFTER I broke up with her they would constantly call my phone looking for her or claiming that I was responsible for her debt. it got to the point where sending out letters and requesting not to be contacted anymore wasn't working that I had to change my number. it's ridiculous. and the amusing thing is these collectors believe their own BS and think they are gods among men, it's a joke.

I have little tolerance for people who don't pay their bills or are unwilling to work with the original creditors. But 3rd party debt collectors? i'm sorry but they're a joke.

*steps off my soap box*

This happened to someone else:
[www.ripoffreport.com]
Don't give them any more money!

If you believe you owe them, settle the debt with them and get a precentage off but remember if you ask for proof of the debt by law the FDCPA protects debt collectors in this instance meaning if they prove the debt is real you cannot settle by law and need to pay the balence in full

@Pious_Augustus: Personally, I'd prefer having the paper trail rather than expecting a debt collection agency to be honest and forthcoming.

But if requesting communication via mail is such a hassle, would it be a terrible inconvenience for the call to be recorded?

If I was dealing with something as massive as debt collection, I wouldn't have any discussions that weren't recorded through my GrandCentral. (And not surreptitiously, either. GC announces that the call is being recorded when you activate it.) If the debt collector wishes to hang up, that's their prerogative.

@Pious_Augustus: That's why you send it return receipt requested.

@Red_Flag:

And the debt is honest and forthcoming? Again you owe someone and defaulted on a payment and cheated someone out of there money, you have the wrong person.

Because Debtors are weasels and will do anything to avoid contacting and paying what they owe.

@Pious_Augustus: Pretty broad generalization, there.

I also think it's fair to say that if all debtors were "weasels" and all debt collectors were paragons of virtue, the Fair Debt Collection Practices Act never would have been passed in the first place, because with all the honest, upstanding debt collectors that never took advantage of anyone that owed a debt, there wouldn't have been a need for it.

@Red_Flag:

The FDCPA was enacting your local Jewel or local stores would post peoples checks in the front of the store too make sure everyone could see you cannot be trusted and are scum. Nothing wrong with that except having there bank account information in which a person can easily steal.

Also it prevented collectors from coming and meeting you to collect only to pocket the money.

The FDCPA was needed not only to protect debtors but also collectors

@Pious_Augustus:

Something seems awfully fishy about your post... I find it funny you are defending these sleazy tactics.

@timmus:

Never Fax, always mail. And registered mail when in doubt or critical.

Beyond the ease of proving mail fraud, there are darn good "cover your arse and protect yourself from fraud and abuse" reasons to require mailed documents. From your perspective as well as theirs.

A legitimate company will be quite grateful to send and receive mailed documents. Scams, frauds, and scum will be hesitant to send or receive documents.

@Pious_Augustus:

Here is what the FDCPA say about validation

"If the consumer notifies the debt collector in writing within
the thirty-day period described in subsection (a) that the
debt, or any portion thereof, is disputed, or that the consumer
requests the name and address of the original credi-tor, the debt collector shall cease collection of the debt,
or any disputed portion thereof, until the debt collector
obtains verification of the debt or any copy of a judgment,
or the name and address of the original creditor, and a copy
of such verification or judgment, or name and address of
the original creditor, is mailed to the consumer by the debt
collector. Collection activities and communications that
do not otherwise violate this title may continue during
the 30-day period referred to in subsection (a) unless the
consumer has notified the debt collector in writing that the
debt, or any portion of the debt, is disputed or that the consumer
requests the name and address of the original creditor.
Any collection activities and communication during the
30-day period may not overshadow or be inconsistent with
the disclosure of the consumer's right to dispute the debt or
request the name and address of the original creditor."

Please show us where in that text or anywhare in the FDCPA or any other law that it says if a debtor requests valitaion they can not settle "by law".

@Corporate-Shill:

No because as it is most corperations look out for their bottom line. Certifed Mail costs money, taking time to send out a second letter not only takes time but costs money.