Legal Question in Credit and Debt Law in California
When can a collection agency not collect a debt
In 1988 my parents co-signed for me to purchase a car.
I made all payments until I incounterd some financial problems. In 1992, I recently found out, the lienholder Charged Off on the account. The lienholder had already stopped all correspondance to me and my parents.
Now a collection agency wants to collect on the account.
Can an agency collect on such an old contract or debt?
Thank you for your time.
6 Answers from Attorneys
Re: When can a collection agency not collect a debt
Under these circumstances, it appears that you may not owe the debt - unless they talk you into signing a new contract to pay that debt.
As a matter of fact, it is very possible that they are in violation of the FDCPA - in which YOU would be able to sue THEM - and potentially recover a monetary award. I may be reached at 858.405.5881 to discuss this matter further including initiating a lawsuit. There is a statute of limitations for you to sue, so the earlier you act, the better.
Re: When can a collection agency not collect a debt
It may be legal, but perhaps a violation of the Unfair Debt Collections Practices act, or other law. There are facts that are to consider such as when the last payment and collection activities were.
Joel Selik
800-894-2889
Re: When can a collection agency not collect a debt
It's doubtful, unless there was a judgment obtained against you or your parents on this matter. Have a lawyer look at it, and you may want to think about writing the collection agency to tell them to contact by writing only, no telephone, under the Fair Debt Collection law.
Re: When can a collection agency not collect a debt
They can if you don't raise the defense in an action filed by them. Also, it should not hurt your credit.The Statute of Limitations is four years.
Re: When can a collection agency not collect a debt
If there is no judgment which has been renewed, you may have a case against them under the Fair Debt Collection Act. Please contact our office at 714 363 0220 for review of your documentation and consultation.
Re: When can a collection agency not collect a debt
Only if you allow them to. If you enter into a promissory note making a "new promise" to pay the old debt, then they have you. You don't have to pay anything now, because the statute of limitations on written contracts in California is just 4 years. If they posture it like you must pay, or if they threaten to sue you, then they have a problem because, in regards to the time, you don't have to do a thing unless you do so voluntarily. In short, only if you make a new promise would you be on the hook. Tell them to stop calling you.
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