My question involves collection proceedings in the State of: North Carolina

My Mother received a letter (in March 2008) from a collection agency stating that she owed $861.67. She had no idea what this bill was for. The letter stated she had to dispute the debt within 30 days of their letter is writing. My Mother did that and also requested all paperwork & previous collection efforts.

When she received the paperwork (from the current collection agency) it was for procedures that she had in December 1997 and January 1998 at an area hospital. Looking over the paperwork it looks like the hospital tried to contact her one time in January 2000 (they say they left a message on the answer machine). And they also have the wrong street number.

When the procedures were done she had insurance.

From the paperwork the hospital sold the a/r to one collection agency & that collection agency has sent it to the current one.

Prior to the letter stating she owed 861.67, she had never received any bills or calls from the hospital, or any collection agency.

What I am asking is it legal for them to demand money for hospital bills that are 10 years old?