Steve says:

December 13, 2007 6:56 pm

When a debt is in collections they will attempt to collect for as long as they would like. A good rule of thumb to help avoid getting sued is to not engage in direct conversation with the collectors, the more info they have on your financial situation the better for them. This info helps them come to the determination as to who they are going to spend there money and time coming after in court. Many good debt settlement companies should be able to help debtors reach an out of court settlement to avoid getting a judgement, obviously assuming the debtor is a client of the organization.

The more info a debtor gives the collector the more risk they can be putting themselves in of getting sued.

Kelly says:

December 19, 2007 6:18 pm

I had a credit card debt (Sears) that was written off by the company in 2002, last transaction was in 2001. I had filed bankruptcy (13) in Nevada, had bad legal advice to stop paying the trustee which reopened old debt. Palisades Acquistion purchased the debt and harrassed me at work and home after I asked them to stop. Now, I found on the internet that they have filed a lawsuit against me here in Missouri where I currently live, although I have not received a summons. Does the Missouri statute of limitations apply since I currently live here, or would it go back to Nevada where the bankruptcy happened? And, does a debt acquisition company have rights to sue me not being the original debtor?

Travis says:

December 20, 2007 2:00 pm

To Kelly:

First, let me say if you are being sued, you need a lawyer. Having said that, the Nevada statute of limitations (SOL) should apply.

Nothing can happen, though, until you are officially notified of the lawsuit and given due process.

A debt aquisition company has purchased and now owns the debt. So to answer your question, yes -- they have the right to sue and all the other rights of the original creditor.

PS: A debt being written off by the company doesn't mean they can't sue you. That's basically an accounting move that is relevant only for internal company business.

claudio abarca says:

December 27, 2007 12:12 am

I received a letter from a collection company stating they have purchased an account from 1998 in which I owe $3000 from a home alarm company. I was not aware of this account until now that I received this letter. I had cancelled the alarm services back in 98' but the collection agency claims that I did not do it in writing so they are charging me for 6 years of alarm monitoring services which of course I never had. How can I possibly after almost 9 years prove that this is a mistake?

Travis says:

December 27, 2007 9:13 am

To Claudio:

If you didn't make the cancellation in writing, it will be more difficult. If you live in Missouri, you can file a consumer complaint with our office, and we may be able to help you with this.

You can also hire a lawyer, which might be worth it since you're facing a $3000 bill.

john says:

February 19, 2008 1:48 pm

I have defaulted on an unsecured personal loan. The loan co is threatening to sue me. In a couple of months I will be retired and my only income will be from social security and a small VA disability pension. I own my home outright and I also own my 10 year old car outright. Other than that I own nothing. How vulnerable am I to liens or attachment of what property I own?

Travis says:

February 20, 2008 3:43 pm

To John:

A private lawyer (hired by you) is best suited to answer these questions for you. Regardless, be assured that to file a lien against your property, the other party must sue you and make its case in court. That means you'll have a chance to be heard.

Renee says:

February 29, 2008 8:35 pm

I received a bill from a collection agency regarding Spiegels card I settled with the company 13 years ago. I have moved at least 4 times since 1995 and have no way of providing proof of payment. That being said, the debt originated in Colorado and at the time I settled with Spiegel I also settled with 6 other charge card companies. I have not yet responded to dispute the claim because I have no proof 13 years later. Am I going to be forced to pay this a 2nd time?

Travis says:

March 3, 2008 9:42 am

To Renee:

It would certainly be easier if you had documentation, but if you live in Missouri, I would encourage you to file a consumer complaint with our office.
If not, file with the Attorney General in your state - here is a list of state AGs.

Jennifer Strodtman says:

March 3, 2008 1:11 pm

I recently recieved a letter from an attorney's office with a p.o. box located in columbia missouri. I have contacted them and the bebt is regarding medical bills with Moberly Regional Hospital for myself and my daughter. It has been about a year that I have been making payment with them on 5 different account for a set amount. Moberly Hospital never complained about our set payment. Then I receive this letter from attorney's stating that they are taking me to court for the amount of all six payments plus attorney's fees now instead of owing 900.00 I owe over 1300.00 total. I contacted the hospital and they have stated that there was one account on my daughter for 115.00 that was only paid on once that sent all of them over to the attorney. I asked for that account number and looked in my records. Sure enough I made one payment on that account and never recieved a bill on it ever again. So now I am getting sued. I spoke with the hospital again and explained my situation they say I am an exception to the cause and that is rare that this has happened but that they cannot get my unpaid bills back in there hands at this point. They have also stated that this is not the first time that a person has complained of not receiving bills from their outside collection agency. The attornies are filing suit the middle of this month. What are my rights to fight this one?

Kathy says:

March 3, 2008 2:17 pm

Can a debt collector look at my bank account to see how much is in it?

Travis says:

March 4, 2008 9:38 am

To Kathy:

Not without a court order. A debt collector has no access to your finances unless a) you allow them to or b) they have obtained a court order to do so. A court order must be signed by a judge, which means they have to sue you. And you have a chance to be heard in court. Here is the Federal Trade Commission's summary of your rights when dealing with debt collectors.

Travis says:

March 4, 2008 9:47 am

To Jennifer Strodtman:

You have the right to hire a lawyer and defend yourself in court.

I would also encourage you to consumer complaint with our office.

Kate says:

March 12, 2008 4:08 pm

How much verification or information must a debt collector, who has purchased a debt from a credit card company, provide to a debtor to satisfy the provisions in the FDCPA that the debt is owed by that debtor and that the collector is authorized to collect it? Is a threat to sue the debtor before the 30 days which the debtor is allowed to dispute the debt a violation of the FDCPA?

Travis says:

March 12, 2008 4:26 pm

To Kate:

1. I would definitely ask for proof that the collector has purchased the debt, and verify with the original creditor. So if the debt collector bought the debt from your credit card company, call the CC company and verify that.

2. If you dispute that you owe the money, I would ask for proof before paying it. If they intend to sue you, they will certainly have to provide evidence in court that you owe the debt.

3. A debt collector is not allowed to make a threat of any legal action that is not true.

Here is the summary of your rights under federal law when dealing with debt collectors. You can file a consumer complaint with our office here.

Alana says:

March 27, 2008 10:52 am

My husband had been to the hospital in March 2004. In March of 2008 I received a call from a collection agency stating we owed around 400 dollars to the ambulance service. When I contacted them they had been billing an address that was almost two years old. She said they got the information from the hospital and the bills came back no longer at address. They attemped to find us on the internet through the white pages and that was all. After calling the insurance, I found the hospital had been paid four years ago. The insurance will not pay this because it wasn't sent right away. I called the ambulance back and told them the hospital had been paid and she said we don't have to bill your insurance that is just a courtesy. What should I do?

Travis says:

March 27, 2008 11:12 am

To Alana:

I'm not clear on who you'd like to file the complaint against. If it's your insurance company, you can file a complaint with the Missouri Department of Insurance. If it's someone else, you can do that with our office (see numerous links above).

Mary says:

April 5, 2008 5:25 pm

Over 15 years ago, Ihad a disputed
bill from verizon phone company -
settled it. I just receeived a collection letter from West VA for 1300.00 (settled amount was 100.00)
car stolen phone in it, cancelled phone - they wanted to charge a 6 month phone fee plus the 100.00 if your phone was lost or stolen - we agreed on the 100.00. Of course I have no back up after 15 years. Is this legal?

Travis says:

April 7, 2008 9:33 am

To Mary:

If you still have your documentation from this settlement, it will be much easier to straighten this out and explain that you were excused from all but $100 of the bill.

If you have trouble, you can file a consumer complaint with our office if you live in Missouri. See link in response to Jennifer above.

Kathy says:

April 7, 2008 2:27 pm

I recently used a veterinarian to sew up my horse's leg. After he finsished I asked for how much i owed and he put me off saying he would let me know after he got back to the office. 2 days later he showed up again and I tried to return some meds that weren't used and again asked for my total. He said he needed to come back in a week and I could settle up after that. He also refused to take back the unused meds, saying I might use them later. I called the vet's office prior to the 3rd visit and asked how much I owed. $473.00!!! I disputed the amt and they said if I didn't like it the vet wouldn't retn. That was OK by me, I hadn't requested the 2nd visit. I contacted them by phone and offered what I thought was a fair amount but they refused to negotiate w/ me and said they would turn me over to a collection agency and I could "deal with them". I feel like I'm being blackmailed after I was duped. I have good credit but feel that I should not pay what amounts to extortion but don't want bad credit. What should I do?

Travis says:

April 7, 2008 3:36 pm

To Kathy:

Unless there's more to this than I'm seeing, it appears the vet provided a service, then sent you a bill.

You may well be sent to collections if you refuse to pay the bill.

Still, you can file a consumer complaint with our office, or with the Missouri Veterinary Medical Board.

Sometimes businesses will negotiate with consumers after they get a letter from a state agency like ours or the MVMB.

Pia says:

April 14, 2008 1:18 pm

I filed bankruptcy approximately 10 years ago. About year later I started receiving letters from a credit card company saying I owed on a credit card I didn't obtain. I was going through a bad divorce and dealing with an abusive situation so I didn't attend to this as I should. Plus, I didn't know how to handle identity theft. I assumed it was in my name, so I was going to get in trouble if it wasn't paid. The card had been maxed out at $1,500. over the years this debt has come and went. I have tried to pay on it and failed. The debt grew from $1,500 to $3,600 before I was could get started. Three companys have handled this debt. Harressing me repeatedly on my job. Now after not hearing from anyone for months I get a letter from an attorney that they are suing me if I don't pay $3,745. I don't want to file bankruptcy again. I feel frustraighted. This was not even my debt. The SOL says 5 years on credit card for suing. Is this true. I plan to dispute the debt but I want advice first. Thanks for any that you can give.

Travis says:

April 15, 2008 10:02 am

To Pia: If you live in Missouri you can file a consumer complaint with our office. If not, you can file an ID theft complaint with the Federal Trade Commission.

Kristy says:

April 15, 2008 2:28 pm

The FDCPA states that a collection agency must cease all collection activity until they have validated, if the consumer requests validation. While I understand that as long as they cease collection activity, they do not have to validate, I would like to know if reporting on your credit report is considered collection activity. Also, once they receive the validation request, should they remove the entry from the credit report until they do validate?

Travis says:

April 16, 2008 11:28 am

To Kristy:

The Fair Debt Collection Practices Act (FDCPA) does not address this question, although here is a letter from Federal Trade Commission lawyer from 1997. He argues that yes, reporting to the credit bureaus is collection activity.

Raymond says:

April 16, 2008 2:07 pm

When you receive your credit report from a 3rd party reseller, should information on medical accounts be visible, such as the name of the collection agency and the name of the provider of medical services? Can the reports that lenders order show the provider's and collection agency's name as long as it only shows a portion of their name and not the whole name?

Daryl says:

April 22, 2008 6:53 am

How about this one, I live in Kentucky. Over a year ago I had service with one of the big wireless companies. I cancelled early, and never paid the bill. They had a debt collecter call me one time, send me one bill in the mail.. After that, everything has gone silent. But the bill was over 800 dollars, so I know they didnt give up that easy. But when I call the phone company to see who they sent my collection too they put me on hold, hang up on me, or they tell me they cant find the company, and they will call me back the following the day; in which they never do. I've tried to find out who I owe, but I keep coming up with the short end of the stick. I dont think I should have to pay this bill when I try to make contact with them, and both parties dont try to work with me. -If you can respond to me by email, Im bad at remembering site names -RebelLovin@yahoo.com

Travis says:

April 23, 2008 5:03 pm

To Raymond:

Under recent changes to federal law: if you have a medical debt on your credit report, the name, address, phone number or any contact info of the creditor can not appear. The amount of debt will appear, with some kind of designation that it's medical.

This rule is protect medical privacy of consumers, so that a creditor can't see info that might shed light on a consumer's medical conditions. For example, if your credit report showed that you owed money to "Substance Abuse Centers of Elm Street" or "Missouri Cancer Center," then obviously a creditor would learn more than he/she should about your medical condition.

Cody says:

April 24, 2008 1:47 pm

I was contacted by telephone in March by a credit collection agency that I had a Student Loan in default. I thought it was part of a consolidation loan I made on all my Student Loans but apparently it was a private student loan so was not included. The credit collection agency informed me that this was a one time offer to take care of this problem and I had to give them my bank account info to take care of this and they would take out payments on a monthly basis. I am 21 years old and never had anything like this before and wanted to protect my credit. I gave them the information they wanted. I talked to my mother after doing this and she told me she had made up the payments that were behind and it should not have been in collection. The credit collection company has taken out two payments from my account. I am still being billed by the original loan company and being accessed late fees. I called both companies. The original company says it never went to collection. The collection agency has given me the run around for the last two weeks. They cannot or will not even tell me where my payments have gone to. What can I do?

Travis says:

April 24, 2008 2:35 pm

To Cody:

You can file a consumer complaint with our office.

Jennifer says:

April 28, 2008 10:05 pm

I need help!!! I am being sued over an emergency room visit re: my son from 2002. I just started getting calls from collection approx. 6 mos ago. I called the hospital for the date of service to see why the insurance didn't pick it up, but no record of a date of service was found by the billing dept. and told me they don't have the info anymore because it was from 2002. Can the collection agency sue me without a date of service?

Travis says:

April 29, 2008 11:14 am

To Jennifer:

To clarify, did your son indeed receive the treatment you're being billed for, or is it a mistake?

Raymond says:

May 3, 2008 11:27 am

Travis, So, if my credit report is showing the medical provider's name and the credit reporting agency says it is ok, how do I fix it? It shows when I receive my credit report through a third party reseller and when a creditor pulled a copy of my report recently. From my understanding, it should have showed in either situation. It can only show when I get my report directly from Equifax, Experian, or TransUnion.

Travis says:

May 5, 2008 3:23 pm

To Raymond:

No credit report should show the name or identifying information of your medical creditor. This recent blog post explains. Dispute this information with the credit bureaus, and if that doesn't work, file a complaint with our office.

Lin says:

May 6, 2008 11:26 am

The apartment complex I lived in for a total of one month with two other roommates claims that we did not pay the fee for breaking the lease early. The fee listed on our legal document lease states "One months rent". They have since changed their policy to "Two months rent" and sold the debt off. I proved that our copy of the lease states only one months rent and the collector agreed to knock off that extra 645 dollars. Now, the total amount owed is $795. The other two roommates have said they are not going to pay, both to me and to the collector for a variety of reasons. I'm the only person who has "verified employment" (which is incorrect on their end because I'm not actually working for the company they think that I am). If all three of us are legally responsible, what am I supposed to do? (Side note: I gave my ex-roommates what I owed for the breaking the lease fee and they never paid the whole amount.)

Travis says:

May 6, 2008 1:56 pm

To Lin:

You can file a complaint against the debt collector with our office. If your complaint is against the ex-roommates, you would need to pursue a civil lawsuit - either in circuit court or small claims court. Page 16 of our Consumers Take Action publication has details on small claims court. It is a more informal setting, you don't need a lawyer, and you can sue someone for up to $3,000.

Brian says:

May 12, 2008 10:47 am

My wife was contacted by a collection agency for an ER visit in 2001 last week after her mom gave them her contact information. At the time of the ER visit she was 19 years old, living with her mom, and covered by her mom's insurance. Apparently the hospital and collection agencies had been billing/calling her mom this whole time. My wife was never made aware of this bill from her mom, the hospital, or bill collectors. In three weeks this bill will be 7 years old. Can they come after my wife, put this on her credit, and collect on it when she had no prior knowledge of an outstanding bill?

Travis says:

May 12, 2008 2:33 pm

To Brian:

Under the statute of limitations a bill collector can't sue on an old debt. Also, negative information can't be on a consumer's credit report more than seven years. You can file a consumer complaint with our office on this matter if you like.

james strohkirch says:

May 13, 2008 12:08 pm

i have a bill collection agency calling me for a car that was repossed 9 years ago the last transaction on it was may of 99 is this debt past the statue of limitations i mean i know they can still call me and harrass me but can they sue me over it i beleive this is called a zombie daebt and was wondering what the statue of limitations was in missouri for this kind of debt thank you

Kristy says:

May 13, 2008 7:11 pm

If you don't mind, I have a few other questions. Does Missouri have any laws that govern debt collectors? I read Chapter 425 that pertains to "Debt Adjuster" and it seems a collection agency would be considered a "debt adjuster" but I am unclear. Are debt collectors required to be licensed and/or bonded here in Missouri as they are in many other states?

Travis says:

May 14, 2008 9:37 am

To Kristy:

Debt collection laws are mainly federal. Missouri law does not require license, insurance or bonding. The privacyrights.org site has good information on debt collection laws.

Angelique says:

May 14, 2008 4:10 pm

I had a credit card with Sears ($3,000-ish)charged off sometime in 2001 and made a "settled in full" deal with a collection agency in 2005 in the amount of $2,250. A few months ago I began receiving letters and phone calls from a new collection agency demanding payment on this account in the amount of $2,025. I called the collection agency and explained that this has already been paid and I was told that though they have no proof of the debt (I asked for proof, via certified mail, on two separate dates), it is my burden to prove that I paid the debt previously or they will continue their collection attempts. I no longer have any paperwork or the money order receipt and the agency I settled with has purged my account from their system. Without proof, am I stuck getting their collection letters every month? I've sent off a cease and desist letter to stop them from calling and the debt is out of the reporting statue of limitations, so I'm not overly concerned about negative remarks on my credit report. If I send a full cease and desist of all communications, including via mail, am I setting myself up to be sued?

Travis says:

May 14, 2008 4:58 pm

To Angelique:

The debt collector should not contact you by phone again, since you ordered them to stop. That means their only option is to sue you, and that's only if the statute of limitations has not kicked in. If you continue to have problems, file a consumer complaint with our office.

Douglas says:

May 18, 2008 11:12 am

how long can a sheriff come to your door to serve you with summons for an old credit card debt, and do you have to answer? and can they give it to anyone who answers the door?

Travis says:

May 19, 2008 9:47 am

To Douglas:

Missouri has a five-year statute of limitation on credit card debt. As for the other two questions, you'll need to consult your lawyer on that.

Missy says:

May 27, 2008 1:38 pm

I have an old credit card account with Montgomery Wards that Arrow Financial Services is suing me over. I thought the statuate of limitations was past, but I am not sure. I know the account dropped off my credit report in March of 2005 so it was at least 7 years old then. Arrow sent me a letter saying that I had 30 days to dispute the debt, but they may move forward with action before that time was up. I then was served papers to appear in court about 20 days after the letter. Can they still take me to court for an account that is this old?

Travis says:

May 27, 2008 3:20 pm

To Missy:

I'm not sure why they're suiing you over a debt that old, but the important thing is that you talk to a lawyer. You have been sued, so you need to be represented.

Vicki says:

May 28, 2008 11:21 am

Trying to clear up a credit report. I don't understand the Statute of Limitations (10 years on a written contract and 5 years on open accounts). This is a telephone bill that will be 5 years old this September. Third Party Collection is calling and wanting payment. I owe and plan to pay, but I'm thinking I should wait until after September in case something goes wrong (they receive payment, which starts the SOL over, and then want more money, and are then able to sue). I also owe a medical bill. Is the medical bill considered a written contract and fall under the 10 years? In Summary; three questions, Does the phone bill fall under the 5 years? How many years does the medical fall under? Should I ask for verification on these bills through the Credit Report Company before paying?

Travis says:

May 29, 2008 3:33 pm

To james strohkirch:

Missouri law provides a four-year statute of limitation for debt on the sale of goods, such as a car.

Travis says:

May 30, 2008 10:46 am

To Vicki:

1. The phone bill most likely has a five-year statute of limitation.
2. The medical bill probably has a 10 year SOL if you signed a contract agreeing to pay. If not, it probably has a five-year.
3. Yes, you should always get verification of debt before paying a debt collector. You should also get verification that the company is authorized to collect on the debt.

Heather says:

May 31, 2008 3:44 pm

In about August 2004 my husband and I seperated. I was unemployed and stayinh home with our just turned 3yr. old son. I contacted all three of the credit card companies that had my name on them, two had insurance on them. I got the conact info to the insurance companies and called. They said that they would handle it under the stimpulation in their contract because I was unemployed. It took me 3 months to find employment and by then the last credit card I assumed had been sent to collections. Last week I got served by a sheriff deputy that I am being sued over one of the credit cards the insurance companies had said they would handle, also they have my exs address and this the first time I have heard from them. I am writing a letter to the original creditor to get the insurance company information to find out what happened. I am also going to write the collection company that I dispute this on the grounds that I had insurance on the credit card and was told by the insurance company that they would handle it. I do not have any of the paperwork from this time as I have moved my stuff several times and seperating the papers due to the divorce. What else can I do?

Travis says:

June 2, 2008 10:34 am

To Heather:

As in the case with Missy, you need to talk to a private lawyer since you are being sued.

Johnathan says:

June 24, 2008 11:05 pm

In 2001/2002, I signed up for a lot of credit cards (young and didn't know better), and in 2002/2003 most of these debts defaulted and were sent to collection agencies.

My questions:

1) How long can these debts show up on my credit report?

2) If the debt is sold to a debt collection agency, does that renew the debt? I've seen a lot of this on my report where I'm getting accounts opened in 2005/2006, and when I called about them, they were trying to collect old bills from 2002.

Thank you for your time.

Travis says:

June 25, 2008 9:45 am

To Johnathan:

1. Negative items can stay on your credit report for no more than seven years. The exception is bankruptcy, which can stay on for up to 10 year.

2. No, selling the debt does not affect the statute of limitations.

JOURNEE says:

July 3, 2008 12:37 pm

I JOINED CCS 06162008 TO PAY OFF ALL BILLS SENDING ONE PAYMENT TO THEM I REC'D A CALL FROM ONE OF THE CREDITORS SAYING THEY HAD THROWN THE PROPOSAL IN THE TRASH I REPORTED THIS TO CCS AND THEY SAID THAT THEY WILL SEND OUT A NEW ONE TO THEM BUT THE COLLECTION AGENCEY STATED THAT THE WOULD PROSURE LEGAL ACITONS CAN THEY DO THIS EVEN CCS IS SENDING THEM PAYMENTS.

Cherri says:

July 6, 2008 3:12 am

I'm disabled from a car accident and haven't been able to pay my debts. I have a judgement against me, because when I went to court the creditors attorney told me I was judgement proof (what does that mean?) and then we were to meet back in 30 days. I asked in front of the judge if he could write down the date and time and he wrote down the day after so I would miss the court date and he was awarded a garnishment. Granted I have nothing. I have other debts as well and would eventually like to move to another state. If I move will my statue of limitation start all over again in another state with their limitations or will it end with Missouri's limitations since the debt was acquired here?

Gloria says:

July 7, 2008 10:36 pm

Can a seven year debt stop me from getting a FHA loan. AT&T is charging me for cancelling my account 1 month before the two year contract ended. I agreeded to pay the bill but not the charge for three phones. They would not accept my offer.The collection agency claims I attempted to pay them last year. This is not true I never sent them a penny. They sued my underage son and took funds from his savings account that I co-signed because he was under aged. I agreed to pay them 300.00 on the account that they claim is now 1880.00. They refused and stated they want 1000.00. Is there anything I can do. I don't have any money and I need this fixed rate FHA loan. Advise me if you can.

Travis says:

July 8, 2008 10:26 am

To Gloria:

I don't know anything about FHA policy, but regarding the problems with the collection agency, you can file a consumer complaint with our office.

Travis says:

July 8, 2008 10:41 am

To Journee:

I'm not following that, but you can file a consumer complaint with our office. See link in response to Gloria above.

Travis says:

July 8, 2008 10:45 am

To Cherri:

You need to talk to a lawyer about your options and the effect of your move on the statute of limitations. Legal aid in Missouri may be able to help.

Beth says:

July 17, 2008 6:58 pm

I'm being hounded by a collection agency that appears to be collecting for another collection agency. The first collection agency is listed on my credit reports as being an "assignee of Citibank". They have insinuated legal action but the date of last activity on this account is listed as November of 2002 on my credit report. No payment, contact, or admittance of the debt has occurred since then. This account was for a charged off credit card account and the original creditor no longer appears on any of my credit reports. I understand Missouri does not have separate state laws governing credit card debt and therefore the FDCPA applies. It is my belief that this debt is timed barred by Missouri's statute of limitations on "open accounts" of 5 years. Does Missouri still view credit cards as "open accounts" and therefore time barred from suit after 5 years from date of last activity/payment? Most of the information I have found does back that up, but I have seen a few mentions of credit card companies/collection agencies trying to file suit under "written contract" law and therefore a 10 year SOL. Which applies in the state of Missouri at this time?

Melissa says:

July 17, 2008 7:35 pm

I owe about $6,000 in credit card debt. I have 2 judgements against me (for credit cards and medical bills) of about $10,000. Im getting social security because im disabled. Is it true that in 10 years, this will all be off of my credit report?

Travis says:

July 18, 2008 9:59 am

To Melissa:

This blog post explains how long negative information can stay on your credit report.

Travis says:

July 18, 2008 10:10 am

To Beth:

State law is generally five years for credit card debt. But if you think you're going to be sued you should seek advice from a private lawyer.

Raymond says:

July 19, 2008 6:27 pm

Hello, Thanks for answering my other questions a few months ago. I have a few more questions. I understand the different SOL for the different types of accounts. My question is: What date does the SOL clock begin to run on debt, the last payment made? What actions will reset SOL in Missouri? Once SOL has expired, if you make a payment, will it start SOL all over again? Does Missouri toll SOL if you were to move out of state? I am doing some research, not being sued. Thanks for any answer(s) you can provide.

Travis says:

July 21, 2008 9:25 am

To Raymond:

1. Generally the statute of limitations begins ticking once the creditor decides there has been "damage" - meaning they consider the debt to be in default, classify it as bad debt, etc.
2. Making payments according to a payment plan can indeed delay the SOL. The SOL might not kick in until one had defaulted on that payment plan.
3. Moving out of state likely has no effect on the SOL.

Julie says:

July 22, 2008 10:20 pm

I defaulted on a Citibank credit card in 2003. Citibank charged it off around October of 2003 but has sold it to a debt collector. The original debt (only my purchases, not fees) was under $600, but with interest it is over $2,000 now. The debt collector is harassing me a great deal and I am wondering when the SOL will be for them to be able to sue me, and if they can actually make me pay all that interest on what was actually such a small debt?

Travis says:

July 23, 2008 10:32 am

To Julie:

See response to Beth, above.

Nickie says:

July 24, 2008 9:35 pm

My husband and I purchased a car in 12-2001. We were divorced and he was awarded the vehicle in the divorce. Needless to say the vehicle was repossessed in 10-2003 and sold in Jan 2004. I know that just because he was awarded the vehicle does not mean I don't owe on the deficiency balance. The account was sold to National Action Financial Services and they recently sent me an FDCPA letter with the balance owed. I asked for validation of the debt and the balance because the balance was so high. They have refused to give me a detailed transaction history. I don't know how many times my ex-husband was late with the payment but the retail installment contract clearly states that they can not charge more the 5.00 for late fees. The next due date was 7-2003, so by doing an amortization scheduled I know about what the balance should be. Since this account was sold would it fall under UCC and the SOL would be 4 years for Missouri residents? If not can they sue me if they can not tell me how they determined the amount that they say I owe? They have repeatedly told me they will sue me if I don't pay a settlement amount, which is against FDCPA if it is past the SOL or if they have to provide proof of the balance. I know that they violated FDCPA because they continued to call me after I requested validation and said they would validate the debt in court when they sued me. So I know that they are using tactics that are illegal.

Raymond says:

July 25, 2008 10:45 am

Travis, You stated that making payments according to a payment plan could delay SOL, what if there was no payment plan set up on the delinquent account, one just sent in a payment. Also, let's say I go delinquent on an account July 2008. The SOL begins to run now. It expires July 2013(if I make no more payments). Let's say I then make a payment in November 2013, have I reset SOL that was fully expired? Thanks for your time.

will says:

July 25, 2008 7:35 pm

I got a letter from weinstein & riley p.s. stated that they are national legal counsel for PHARIA l.l.c.the owner of my credit card account with first usa bank na. and that legal counseel have been instructed to commence legal action against me if prompt resolution of my debt obligation does not occur.they demand payment now.the thing is, I have no job, failing health and other issues as well.also, they say that make arrangements to settle or dispute , and call the following number to discuss some amicable resolution.

Raymond says:

July 28, 2008 8:17 pm

What is the statue of limitations for credit card debt in Missouri for debt originating out of state - specifically California? Thank you.

Travis says:

July 30, 2008 3:31 pm

To Nickie:

Yes, in Missouri debt on a car note generally carries a four-year statute of limitation. If you like, you can file a consumer complaint with our office against the debt collector.

Sonya says:

August 7, 2008 12:50 pm

I defaulted on an personal loan from 2004. I was recently served a summons from an attorney requesting I appear in court. I contacted the attorney and they suggested that I sign a consent judgment for almost 6x the amount of the loan. I signed the judgment but was unable to fulfill the terms of the agreement due to a foreclosure on my home. The attorney is now planning to garnish my wages. Is there something I can do to stop this action? What is the statute of limitations on a personal loan and does the consent judgment interfere with the statute of limitations?

Travis says:

August 8, 2008 2:29 pm

To Sonya:

This is a complicated situation that I can't answer. You need to be represented by a lawyer if you are facing garnishment or other legal action.

will says:

August 8, 2008 7:01 pm

I contacted you around the 29 of july reguarding a letter from weinstein 7 riley p. s. stating that legal counsel has been instructed to commence legal action aganist me. I don't have the money to pay this (some of which )are fees. What can i do?

Travis says:

August 11, 2008 3:08 pm

To Will:

You can file a consumer complaint with our office, and the debt collector may agree to a reduced payment amount. You can also find a good credit counselor at this link.

Matthew says:

August 12, 2008 10:00 am

Last week I received a Letter of Garnishment from the Local courts, in contacing the lawyer involved they said that i had to speak with the credit agancy involved Apparently when i had canceled my lease due to a hardship 5 years ago the company that i canceled the lease through was not satisfied with collecting only my deposit but also chos to place a judgement against me they tried once and I was living out of state and heard nothing of the judgement case and was dropped, Without any communication neither written or verbal apparently filed judgement against me again this time claiming that they had reached me and that i was to appear in court they must have had the wrong address because i didn't receive any written communication of this matter, about a month ago I began receiving threatening phone calls of Garnishment I tried to reach a resolution only to be told that the Apartment lease I had canceled was placing a judgement against me for 2700 plus interest which I didn't know was possible They told me they wanted there money plus interest or they would garnish my wages even going as far as calling my Place of employment. Finally they placed a Garnishment with no knowledge on my behalf yesterday again i called to find a resol.ution to stop the garnishement and was told A). that I couldn't speak with the collector i had to speak to his Assistant because he was the head of a Corporation. B). they wanted Now 4800.00 Plus Interest and would continue to Garnish until they received the Full amount and intrest would continue to acrue. I can Understand if I have an Outstanding bill I would Like to take care of it I don't agree with there practices be it the Leasing company or the Collector I feel that my rights have been Violated per the Fair Debt Collection Protection Act so Much that I don't believe filling a Complaint would do Much I don't want to sue I just want to handel this What do I do ?

Travis says:

August 12, 2008 2:35 pm

To Matthew:

If you don't want to file a complaint or sue, I guess your only option is to negotiate with the company. If you change your mind, you can file a complaint with us. See the link in the response to Will, above yours.

Deanna says:

August 15, 2008 7:35 pm

I have already sued and won by default a judgement against Farmington Lipo Dissolve and tried to have the owner Kristin,which is no longer in business, garnished at her other job and she was terminated just before the garnishment reach her company.She had no occupancy permit or business license iether.Can I get any other help before hiring an attorney to collect?The courthouse house said if I knew what bank she used but I cant find that out.Any suggestions?Thank you.

Travis says:

August 18, 2008 1:59 pm

To Deanna:

You can file a consumer complaint with our office. See link in response to Will, above.

Toni says:

August 26, 2008 3:01 pm

Dear Travis: I have a couple of credit cards I have not been able to pay on since my divorce in May 2003. I understand the statute of limitations for MO is 5 yrs. on revolving accts. however my question is does that time start from the last payment that was made on the acct. or from the date of your last transaction or charge on that acct. ?? Thank you!! TJF.

Travis says:

August 27, 2008 8:56 am

To Toni:

In general, the statute of limitations clock starts ticking when the creditor has "sustained damage." That legal term basically means when the creditor decides your debt is in default.

Kristy says:

September 4, 2008 8:51 pm

I was reading Nikki's question above and your reply. I am curious, does the UCC statute of limitations apply to any contract that was sold or just in that case?

Travis says:

September 5, 2008 10:25 am

To Kristy:

The Uniform Commercial Code statute of limitations has been ruled by courts to apply to car debts. Other types of debts have different SOL's in Missouri. Credit card debt, for example, is five years.

Love says:

September 8, 2008 10:16 pm

I had a vehicle repossed in late 2003. I have a debt collect service contacting me now. The last agency told me the payments that I was sending were not enough, but it was all I could afford. I there a such thing as a too little payment? Should I speak with them or just start sending the payment in?

Travis says:

September 9, 2008 10:23 am

To Love:

There is such a thing as a payment that's too small: anything that is less than what you agreed to. You need to consult your contract to see what the correct payment is. If you are unable to pay it, try to renegotiate with the new collector. But ignoring their bills and calls is the worst thing you can do.

Leticia says:

September 18, 2008 1:32 pm

How can I find out the date of which the 7 year period would have begun on any given debt? Is that even possible?

Margaret says:

September 19, 2008 12:09 pm

My husband had a credit card in his name only. He passed away in April and now a collection company who has been maintained by Washington Mutual is saying I owe the balance. My husband estate is insolvent, so do I owe the balance?

Travis says:

September 19, 2008 3:51 pm

To Margaret:

You should demand from the debt collector proof that you owe the debt - your signature on a contract, etc. If what you are saying is correct, there should be no such proof. You can then instruct them to stop calling you and file a consumer complaint with our office if they don't stop.

Travis says:

September 19, 2008 3:54 pm

To Leticia: In other words, you want to know when the clock started running on the seven years this debt is allowed to appear on your credit report. I would ask the original creditor. If the debt is on your credit report longer than the seven years allowed by federal law, I would file a consumer complaint (see link in answer to Margaret) with our office, and we can try to get an answer from the creditor.

Bridgett says:

September 23, 2008 8:45 pm

A collection agency keeps calling my house for a debt my son owes. My son does not live with us. He lives out of state. I told them that and they basically called me a liar. They keep calling our house even though I've told them he doesn't live here. They said that this was the number he gave them and unless I give them a number where they can reach him they will continue to call our house. The cell phone number I have for him is in my name as well. I told them that if I spoke to him I would give him their number and he could call them if he wanted to. Am I within my rights if I buy an airhorn for the next time they call?

Travis says:

September 30, 2008 3:40 pm

To Bridgett:

I know of no law forbidding the use of airhorns in this situation.

Juan says:

October 7, 2008 7:12 pm

Travis, you are vague and seems like you ae so lazy with your responses to us. All you pretty much do is click on your little word comments and tell us to file a complaint. May you please have someone who will take time to answer our questions with substance not no vague remark?

kelly says:

October 17, 2008 5:16 pm

We had a judgment go through on us for old credit card debt that was like 3,000 dollars. After interest, court costs and attorneys fees the judgment was for $6,300.00! They sued and won about 1 month ago. We have not heard from them via garnishment or lien yet. Will they more then likely freeze bank accounts, do a garnishment or use a lien on our house? What is the most they can garnish here in Mo. if the person is head of household?

Travis says:

October 22, 2008 10:39 am

To Kelly:

These are questions for the lawyer who represented you in the lawsuit. If you weren't represented, you can find a good credit counselor using the Web site of the National Foundation for Credit Counseling.

Lynda says:

October 28, 2008 12:14 pm

my grandson owes a large hospital bill for which he is now making monthly payments. He was in school and unemployed until recently so could not make payments until now. Collection agency is calling threatening to sue advising him to sell his truck, take out a bank loan, or borrow from his family, etc. None of these are options for him. Can he be sued, etc. if he is making an effort to pay this bill? The agency also calls me (his grandmother) with the same type of suggestions.

Travis says:

October 31, 2008 9:38 am

To Lynda:

Collectors normally sue only if the debtor is not paying according to the terms of their mutual agreement. Your grandson could file a consumer complaint with our office. Our involvement might get the collector to negotiate the terms.

Ken says:

October 31, 2008 2:23 pm

Dear Travis, Basically a collection agency (Sunrise Credit Services, Inc., 260 Airport Plaza, Farmingdale, NY 11735, 800-208-8565) bought an account of mine from HSBC VISA this month as is asking me to pay them $144.88 (not much, but it's the principle, right?). The story: Last December, I went to a football game and it was COLD. My beer was freezing before I could drink it and my hotdog was without mustard since the container had frozen. My brother and I decided to get some extra clothes by filling out a credit card application for a blanket and a long sleeve t-shirt (which is great, but not worth $144.88) In addition to the extra clothes, I was going to receive a credit card. I never heard from the credit card company. Last night, I did receive a phone call from the collection agency. The credit card company had the wrong address and none of the mailings ever got to the address that I had put on the account. All of the other information was correct (because I wanted the card too , not just the gift). Even the phone number was correct, but HSBC VISA never called....the collection agency did. Apparently, my brother received phone calls and canceled the card no problem (I talked to him last night and he told me this....if I had known earlier, of course I would have called). My credit rating is great (or so they tell me) and I don't want it messed up over this (is that worth $144.88?, I am guessing that Sunrise is betting on that.) So I called the HSBC VISA to talk to them since Sunrise said I could pay the entire bill and file a grievance with the CC company. (The bill came from a $29.95 start up fee that was never paid which turned into the $144.88) Upon calling HSBC, they said they would never be able to help reimburse money and that the account was sold to Sunrise and it had nothing to do with them (they were very nice about it). I then called Sunrise back and offered to paid for the $29.95 (the shirt is worth that), but they said no. So I am now at a crossroads, trying to solve this dilemma.Can you help? Is this worth fighting?

Travis says:

October 31, 2008 4:45 pm

To Ken:

It is worth fighting. You can file a consumer complaint with our office. Under federal law, you are not responsible for fraudulent use of a credit card.

Ken says:

November 3, 2008 7:09 am

Great News...When I file the complaint, is it against the credit card company or the debt collection agency? Thanks

Travis says:

November 3, 2008 10:08 am

To Ken:

Mention both companies in your complaint so we'll have the full picture.

Anthony says:

November 3, 2008 4:52 pm

Dear Travis, I have been contacted repeatly by Scott Carruthers Law firm about a debt they say is from US Bank that bought the bank who originally owned the debt. I just returned from a deployment a week ago. They say that the debt is for a over draft charge from 1999 of about $261, but I owe $2100 for the interest over 8 years. What is the SOL? I have no records from that long ago. I have bought a House, New Car, and had my security clearance renewed since then with this never coming up on none of the credit checks.They wanted me to pay them by credit card over the phone and when I told them I wanted to talk to JAG they got upsat and told me there was not time and they would need payment now or file the law suit. What is your thoughts on this problem?

Travis says:

November 4, 2008 11:03 am

To Anthony:

This issue probably never showed up on credit checks because banks don't generally report to the credit bureaus. They have their own reporting system that you can read about here.

As for the statute of limitations, it probably falls into the five-year category under Missouri law.

George says:

November 20, 2008 5:37 pm

What state's statue of limitation applies in debt collectiom. Is it the state that the collection agency is in, my state of residence, or is it the state of the "creditor".

Edward says:

December 2, 2008 4:04 pm

I have an unsecured loan which I defaulted on as well as other credit cards due to the fact that by business went down pretty bad. The bank has apparently sold the debt off to a debt collecting company which then they filed a lawsuit against me. The court papers shows "Notice of Case Management Conference" with a date below it that has not arrived yet, but I received a letter from the debt collector's lawyer that they have a judgment against me now and are willing to settle with 20% of what's owed. The question is how can they get a judgment against me if the hearing date is not here yet..!!?? I called the listed DRPA in court papers and they knew nothing about the case or the case number!! I pretty much don't have anything now. I can't even afford to hire a lawyer to file for bankruptcy at this point. Any guidance will greatly be appreciated.

Travis says:

December 3, 2008 11:33 am

To Edward:

I can't speak to your situation but in general: when you are sued you are notified of this, a court date is set and you have the opportunity to be heard in court before a judgment is made.

A judgment could be made in your absence if somehow you miss the notification or you don't show up for the hearing.

Kristy says:

December 4, 2008 11:40 pm

Edward, Most Missouri court cases are available online at www.courts.mo.gov , you could check to see if there has been any cases against you filed by this collection agency.

Kristy says:

December 4, 2008 11:41 pm

The statute of limitations for your state of residence is the one you need to be concerned with. If you lived in another state when the debt occured, you need to check the statutes for that state also.

ruben says:

December 12, 2008 6:59 pm

i am being sued by pharia l.l.c.,over a bad account of a credit card.i was locked up and could not make the payments,the account was closed and sold off.can they sue me if ihave no contract with the collection agency? i would like to know how much they paid for the account and see if i can pay only what they paid for the account.

Travis says:

December 15, 2008 10:19 am

To Ruben:

You can be sued by a debt collector who owns the debt. I don't know of any law that requires the new owner to tell you what they paid for it. However, the collector may be willing to negotiate down the amount they'll accept.

Kristy says:

January 2, 2009 10:06 am

In a comment from July you stated that moving from the state likely has no effect on SOL, but when reading MO statutes, I found that Section 516-200 states "....and if, after such cause of action shall have accrued, such person depart from and reside out of this state, the time of his absence shall not be deemed or taken as any part of the time limited for the commencement of such action." So does that mean on a debt that has a 5 year SOL, if a person moved 2 years after the cause of action, and was gone from the state for 4 years, when they moved back, there would be 3 years left on SOL?

Travis says:

January 7, 2009 3:42 pm

To Kristy:

Your analysis makes sense, but I would talk to a private lawyer to confirm.

Jeff says:

January 16, 2009 4:11 pm

I currently live in Missouri and did when I had a personal loan that defaulted in 1996, the original creditor's charge off has since fallen off my credit report. The note was sold to another company who employs several law firms to collect this debt. I was in the process of negotiating with one of the firms when the other one had filed in court for a judgment on 4/1/02. I was told by the firm that I was negotiating with that per our written agreement to pay by the end of June 02 in full would settle this debt and that I would not have to go to court. I did pay it in full and have documents to prove it. Shortly thereafter, I found out that a default judgment was granted to the other firm representing this same company. This has been on my credit report for the last 6 now going on 7 years. Was this legal for them to do? Will it finally be falling off my credit report now in June 09 which will be 7 years? The errors made between them in communicating with each other or to the owner of the debt in obtaining this judgment has cost me dearly over the years past and not a single one of them have been willing to help correct it.

Michael says:

January 29, 2009 11:02 am

I received the same letter from D Scott Caruthers law firm as Anthony. Overdraft protection that had accrued over 500.00 in interests since 1998.

Travis says:

February 2, 2009 2:19 pm

To Jeff:

To straighten out this matter with debt collectors and credit bureaus, you can file a consumer complaint with our office. See link in the above blog post.

Kisha says:

March 4, 2009 11:42 am

I just wonder how long can a account be sold. I have accounts on my credit that seem to keep being resold over and over again. I have a cc from 1997 that was sold just last year..How long can they sell an account to a creditor and collect?

Patty says:

March 5, 2009 11:16 pm

My husband and I have just learned that our wages our being garnished and our bank account is froze for a debt. This has been court ordered. I can not get my attorney to return my calls. My question is our pay is direct deposit into the frozen account...can they still freeze that account...if so how are we to live and support our 3 children when we can use our paychecks...our companies will not do paper checks or refillable debit cards.

Cathy says:

March 9, 2009 12:18 pm

I leased a car in 2000. I returned the car in 2003 1 year early because of constant problems with the car. I was not charged anything and my credit report showed paid/current with a $0 balance. Just this month I noticed that the account status was changed to charged off/current with a balance of 6,000. Can they change the status and balance after 6 years? Is this legal?

Travis says:

March 9, 2009 2:10 pm

To Kisha:

There is no limit on how long debts can be sold. Again, the only limit is the statute of limitations, which limits how long you are legally obligated to pay.

Travis says:

March 9, 2009 2:21 pm

To Patty:

I would talk to your bank about this and to a private lawyer.

Travis says:

March 9, 2009 2:36 pm

To Cathy:

We need more information. You can file a consumer complaint with our office.

Edward says:

March 10, 2009 10:47 am

My wife was contacted by a creditor on a debt outside the Statute of Limitations. (Credit card debt, more than 5 years old) They say that last week they received a verbal acknowledgement from me, who was authorized to speak for her. Would a 'verbal acknowledgement' reset the SoL in the absence of a written acknowledgement or any type of written agreement?

Travis says:

March 16, 2009 10:14 am

To Edward:

Verbal contracts can be just as valid as written ones.