Debt Collection After Expiration of Statute of Limitations
My question involves collection proceedings in the State of: Texas
First, thank you for taking the time to read my question.
I had a cell phone account with Sprint in 1998. I was a young adult, suddenly single and left with many bills I could no longer afford with a single income. The account was written off later that year. The account was sold to a collection agency (may have even been sold a couple of times???), but all instances of it vanished from my credit report in June of 2010.
I opened an account with Sprint in February 2009, but closed it 10 days later as the service was weak in my home area. Sprint shows this as a separate account, paid in full/zero balance.
I pull my credit report each month through Amex credit monitoring services. From June 2010 until April 2011, nothing negative had been showing, and my credit score was strong. Then, this month I discover an entry for a collection account indicating it the consumer account they are collecting upon was opened January 2010. Also, it shows that the "date reported" was February 2011.
I've contacted Sprint and they've advised me that the old 1998 account was written off, and zeroed out. They've also advised that the account I opened and held briefly in 2010 was zeroed out, paid in full in good standing.
I was told by a friend that a collection company can attempt to collect on a debt for as long as they want; however, it's unable to impact your credit negatively once you've exceed the statute of limitations based upon when the account was opened.
I have not received a letter, phone call, or any other communication from ANY collection agency (or Sprint) in probably almost 10 years.
The collection agency is a small, local, rinky-dink office and I want to be armed with the right information before I reach out and attempt to resolve this. I've received documentation from Sprint indicating that **both** accounts are in good standing (yes, even the one that's in question from 1998).
Can you provide some direction? Please let me know if you need any addtional details to provide assistance.
Re: Statute of Limitations - What to Do
file a dispute with the credit reporting agencies (all 3 if it is listed with all 3)
the old account is long beyond the reportable time. The new account, what I read, has a 0 balance so there is nothing to collect on. If you can get a written statement from Sprint with what you said they said, it would be good support for your argument.
Personally, I would not contact the collection agency at this point in the issue. There is no reason you should have to.
Re: Statute of Limitations - What to Do
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jk
file a dispute with the credit reporting agencies (all 3 if it is listed with all 3)
the old account is long beyond the reportable time. The new account, what I read, has a 0 balance so there is nothing to collect on. If you can get a written statement from Sprint with what you said they said, it would be good support for your argument.
Personally, I would not contact the collection agency at this point in the issue. There is no reason you should have to.
Thanks, JK. Just to clarify, and I realize I may have omitted this yesterday, Sprint shows a $0 balance as a result of the charge-off. However, the amount the charge off that the agency is attempting to collect upon is $705.
I agree, and have/will not contact them. Once I file the dispute, and the credit bureaus agree to remove it from my file, can the collection agency contest it or place the item right back on to the report?
Many, many thanks for your time on this!
Re: Statute of Limitations - What to Do
the reporting agency will contact the CA upon your dispute. The CA will have the opportunity to validate the debt to the CRA after which, if it cannot be validated or if they don't act to do so, it should be removed from your CR. Just keep an eye on your CR to see what happens once you dispute the debt.
Re: Statute of Limitations - What to Do
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Quoting
jk
the reporting agency will contact the CA upon your dispute. The CA will have the opportunity to validate the debt to the CRA after which, if it cannot be validated or if they don't act to do so, it should be removed from your CR. Just keep an eye on your CR to see what happens once you dispute the debt.
Thank you... Good to know. A close friend just told me at lunch that they do have the ability to report it based upon the new (??) statute of limitations that is generated each time the debt is sold to another agency. I was under the impression that it can only be reported on your credit while in the statute of limitations window applicable to the origination of the debt (in this case, with Sprint). Either she or I have something wrong with the facts.
Can you provide clarity? I promise I'll stop bugging you with my additional inquiries! :)
Re: Statute of Limitations - What to Do
the reporting SOL does NOT refresh when the original debt is sold. The reporting dated is based on the original debt with the original creditor. Once that time limit runs (7-7 1/2 years from first delinquency), it can no longer be reported regardless of how many times it is sold.
Re: Statute of Limitations - What to Do
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Quoting
jk
the reporting SOL does NOT refresh when the original debt is sold. The reporting dated is based on the original debt with the original creditor. Once that time limit runs (7-7 1/2 years from first delinquency), it can no longer be reported regardless of how many times it is sold.
Wow. So, other than some sort of weird loophole, it appears as if I should be able to get this cleared up and taken off my report, eh? Do you know of any technicalities or loopholes (or, where I might turn to research/educate myself) I might want to be aware of, which could have enabled them to proceed with placing this on my bureau report?
Stupid question--if it's only shown up on one credit bureau report, should I send to the other two as well (sort of in an attempt to be proactive??? I dunno).
Re: Statute of Limitations - What to Do
I would dispute it with only the CRA that is reporting it. The others cannot do anything because since they aren't reporting it, there just isn't anything for them to do.
as to educating yourself concerning the SOL; see here