Legal Question in Credit and Debt Law in New York
debt interest accured
i have an original debt of 5000 posted on 2001 as written-off a collection agency recently contacted me saying the debt was now 9500 as is due immediately. is this legal
2 Answers from Attorneys
Re: debt interest accured
FYI, the NY statute of limitations to sue on a bad debt is 6 yrs.
If this debt was not reduced to a judgment it may be time barred. HOWEVER, if you pay anything or acknowledge the debt, you start the 6 year clock running all over again.
So, if there is no judgment and 6 years have passed since the debt/payment became due and wasn't paid, they can not collect (although it is legal for them to try and get you to pay). Write them and tell them not to contact you anymore.
Re: debt interest accured
It may be if your cardholder agreement permits late fees and interest on the outstanding amount owed.
Good Luck
RRG
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