primitives discuss old debts

[franksolich]

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x6779247

Oh my.

There's been a lot of bonfires lately on Skins's island, about debt collection.

It must have something to do with this roaring robust economy.

question everything  (1000+ posts)        Thu Oct-15-09 12:31 AM
Original message
 
"Time barred debt"

I happened to have the Today Show at the beginning of its third hour. But instead of talking about kids and recipes and fashion, they had their financial mavens answering questions from callers.

Someone reported a collection agency calling about a five year old debt, offering payment of 10 cent on the dollar and it would consider the debt paid in full.

The reply was that this is a "time barred debt" that the time can vary from state to state. Either way, the creditor already wrote the debt off but the collection agency purchased it at, I think, one cent on the dollar.

If that caller was going ahead with the "suggestion" to pay 10% of the debt, the debt would be put back on the caller's credit report.

So, beware of strangers bearing gifts.

yodoobo  (1000+ posts)      Thu Oct-15-09 12:39 AM
Response to Original message
 
1. yep..and once you pay 10%

Its *NOT* time barred anymore!

flvegan  (1000+ posts)        Thu Oct-15-09 12:44 AM
Response to Original message
 
2. Collection agency needs to prove up its claim.

I wouldn't pay anybody shit if they can't prove the debt is valid beyond a bit of a doubt. AND, they better be able to prove it in court. Good luck with that.

And that's one to grow on.

question everything  (1000+ posts)        Thu Oct-15-09 12:47 AM
Response to Reply #2
 
3. In that example the debt was real, but was more than 5 years old and as much as most of us want to pay back our debt, the advice was to let it go, that the creditors already wrote it off and that it was no longer in the caller's credit report.

flvegan  (1000+ posts)        Thu Oct-15-09 12:49 AM
Response to Reply #3
 
4. When that collection agency files suit is the defense going to be that it's time barred? I don't know about your state, but that won't fly here.

TexasObserver  (1000+ posts)        Thu Oct-15-09 12:52 AM
Response to Original message
 
5. Many states have a four year statute of limitations on contract breach.

If you have not paid on a credit card in five years, the worst thing you can do is to pay them a dime. You can revive a debt whose statute of limitation has expired with one payment, in any amount. Don't do it. Don't talk to them. Don't respond to them.

question everything  (1000+ posts)        Thu Oct-15-09 11:27 AM
Response to Reply #5
 
6. Indeed. And this was the strong message sent by those who appeared on the show.

One of them referred to the callers as "vultures."

A Fat Che plops up in the punch bowl, effectively killing this bonfire:

Winterblues (1000+ posts)      Thu Oct-15-09 11:44 AM
Response to Reply #5
 
7. Why would you not want to pay an honest debt?

I can understand if someone has had severe financial problems,(medical problems or lost employment) but if it is an honest debt that you took on knowingly, why would you not want to pay your debt when you become able?  Stealing is stealing........you make a promise to repay someone I believe you need to live up to your word or else you are no better than a thief IMO.

[Carl]

The situation ethics that thrive with DUmmies will always come up with a way to rationalize being a worthless deadbeat.

[jukin]

Unless the laws have changed dramatically, the debt stays on your credit report until paid.  I have no real world experience (imagine that) but my understanding is that if you pay the 10% the debt is retired but it goes on your credit record from the payoff as a black mark for seven years.  I'm sure that there are state to state differences.