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  1. #1
    Join Date
    Jun 2016
    Posts
    1

    Default Debt Collection from a 16 Year Old College Credit Card

    I live in Alabama and I was contacted by some recovery agency. They were attempting to collect a credit card debt I had in 2000. They even informed me that the debt fell off my credit in 2009. After telling me that with the interest I owe them $6000 and that they will freeze my assets if I don't pay them they offer me to settle the debt. I told them that I don't remember the credit card and don't think it's mine. After 45 minutes of going back and forth they offered me to settle for $1300 and sue whoever opened the account to get my money back. I made a payment of $200 over the phone since I had no idea of what to do. The rep called me two weeks later to lower the settlement to $500. What are the solutions to this issue and how can I handle this problem?

  2. #2
    Join Date
    Jul 2010
    Posts
    8,006

    Default Re: Debt Collection from a 16 Year Old College Credit Card

    What you should have done was tell them to pound sand and hung up. Now that you have made a payment, you have restarted the Statute of Limitations. Had you not done so, they could not have successfully sued you as the expiration of the SOL is a defense to such suits. Note I said successfully as some outfits will still sue even if the SOL is known to be expired.

    You can either pay them the $500 if it is your debt or tell them to pound sand and wait to see if they sue you.

  3. #3
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Debt Collection from a 16 Year Old College Credit Card

    Yep, you restarted the SOL:

    Alabama Statute Section 6-2-16

    Sufficiency of partial payment or written promise to remove bar.

    No act, promise or acknowledgment is sufficient to remove the bar to an action created by the provisions of this chapter, nor is such evidence of a new and continuing contract, except a partial payment, made upon the contract by the party sought to be charged before the bar is complete or an unconditional promise in writing signed by the party to be charged thereby.
    Now they can sue you for the whole $6000.

  4. #4
    Join Date
    Jun 2016
    Posts
    17

    Default Re: Debt Collection from a 16 Year Old College Credit Card

    Quote Quoting adjusterjack
    View Post
    Yep, you restarted the SOL:



    Now they can sue you for the whole $6000.
    If the debt was already time-barred, the payment did not restart the SOL.

    Note that the AL Code says "partial payment, made upon the contract by the party sought to be charged before the bar is complete". In order for the SOL to be restarted, the payment must be made before the SOL has passed.

    Under the unambiguous language of § 6-2-16, a partial payment must be made "before the bar is complete" in order to remove the bar. In re Templeton, 538 B.R. 578, 583 (Bankr. N.D. Ala. 2015).

  5. #5
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Debt Collection from a 16 Year Old College Credit Card

    Quote Quoting Bluesie58
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    If the debt was already time-barred, the payment did not restart the SOL.

    Note that the AL Code says "partial payment, made upon the contract by the party sought to be charged before the bar is complete". In order for the SOL to be restarted, the payment must be made before the SOL has passed.
    Thanks, I overlooked that part.

    You seem to know your stuff. How about you hang around this forum and help out?

  6. #6
    Join Date
    Jun 2016
    Posts
    17

    Default Re: Debt Collection from a 16 Year Old College Credit Card

    Quote Quoting adjusterjack
    View Post
    Thanks, I overlooked that part.

    You seem to know your stuff. How about you hang around this forum and help out?
    Thank you for the friendly welcome. I don't know how much stuff I know. I think I just get lucky sometimes.

  7. #7
    Join Date
    Jul 2015
    Location
    Florida
    Posts
    301

    Default Re: Debt Collection from a 16 Year Old College Credit Card

    It may have been revived for credit agency reporting purposes, however.

  8. #8
    Join Date
    Jun 2016
    Posts
    17

    Default Re: Debt Collection from a 16 Year Old College Credit Card

    Quote Quoting jdbofky
    View Post
    It may have been revived for credit agency reporting purposes, however.
    A payment on an account that has been charged off will not revive the account for credit reporting purposes. The 7-year reporting period is based upon the date the original creditor placed the debt for collection or charged it off. After that 7-year period has passed, the account can no longer be reported.

    1681c(a)(4)

    (a) Information excluded from consumer reports Except as authorized under subsection (b), no consumer reporting agency may make any consumer report containing any of the following items of information:

    (4) Accounts placed for collection or charged to profit and loss which antedate the report by more than seven years.

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