Collection Agency Calling on 10 year Old Debt Past the SOL in California and Kentucky
in 2001 i lived in California and had a small credit card. i was hurt on the job and unable to pay. Today 1/09/2012 i live in Kentucky and a collection agency just contacted me.
Do they have to go by California law since that's where the debt came from. or since i live in Kentucky, does that change the whole process?
I lived in California 2001 had small credit card hurt on job unable to pay 10 years later collector me in Kentucky what can I do?
—kelly
Short answer
This is what gets called zombie debt: an account outside the statute of limitations for anyone to sue you over it, and old enough that it should no longer be showing on your credit report at all. With a 4 year limit on open accounts in California and 5 years in Kentucky, a lawsuit is unlikely.
Key points on this page
- Zombie debt is a debt the owner can no longer take to court, and that should have aged off your report as a charge off or collection.
- You can unknowingly reset the statute of limitations by admitting to the debt, or by making a partial payment.
- On open accounts such as credit cards, the statute of limitations is 4 years in California and 5 years in Kentucky. A move between states can pause the tolling.
- Caution: if you are not certain the debt is past the statute of limitations, a cease communication letter leaves the collector no way to proceed except by suing you. Consider other ways to resolve the debt first.
- To stop contact on a debt you know is time barred, send a letter stating that you dispute the debt and demand the collector cease communicating with you in any way. Send it certified mail with return receipt and keep the green card.
- If the same agency keeps contacting you after that, speak with an attorney experienced in collection violations. Many take these cases on contingency and are paid by the other side. Also check that the account left your credit report 7.5 years after the date of last payment.
The debt collector is trying to get you to pay what is likely a “zombie debt“. Zombie debt refers to a debt that is outside the statute of limitations (SOL) where the debt owner can access the courts and sue you in order to collect, and the fact that after 10 years, the account should not be appearing on your credit report as a charge off or collection. The debt is essentially the walking dead.
There are instances where you can unknowingly reset the SOL on a debt by admitting to the debt or making a partial payment.
There are also instances where the tolling on the SOL is paused due to the move you mention you made. With the SOL of 4 years on open accounts (credit cards) in California, and 5 years Kentucky, I find it unlikely the SOL can be established as still an active concern, and I doubt you will be sued. If you were sued, I would encourage you to connect with a consumer law attorney and discuss the situation at that time. In fact, I want you to be aware of a few things that may lead to you contacting an attorney with debt collection violation experience.
Debt collectors should follow up phone calls with a collection letter.
This collection letter will give you the address you need for the agency in order to send them a cease communication letter. It does not have to be a fancy or long letter. Just be sure it states that you dispute the debt and you demand that the collector cease communicating with you in any way. This means this particular collector should not be attempting to contact you again. Be sure to send the letter certified mail return receipt in order to get the green card back that proves the collection firm received it. If collection attempts by the same collection agency continue after that, you should connect with an attorney with collection violation experience and discuss how he or she may be able to assist you. Many attorneys with experience in this area of law will not charge you a retainer or request any fees from you if they represent you in this situation. They work your case on contingency, where if they are to be paid, it will be by the other side.
If you continue to receive calls on this debt by this, or any other collector, I would encourage you to reach out to an attorney. I can help you locate one if you post the name of a large nearby city.
I encourage you to check your credit reports if you have not done so recently and be certain that this negative account has been removed after 7.5 years has elapsed since the date of last activity (last payment). Any collection agency reporting related to the account should no longer remain on your report either, but collection accounts do often reflect a more recent and therefore inaccurate date of last activity.
Sending debt collectors a cease communication letter if the SOL has not expired.
Anyone reading this who is not certain that the debt is outside the SOL for legitimate collection efforts using the courts, who sends the cease communication letter in an attempt to stop collection calls and letters, will be leaving the collector no alternative to communicate unless they want to proceed with collection by suing you. There may be better methods for resolving the debt you should consider instead.
Any reader with questions or concerns regarding debt collection and the statute of limitations can post them in a comment below for feedback.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry. He is available to speak with you about your financial struggle and helps people resolve their debt problems daily.
My best friend of 50+ years tells me that a collection agency contacted his wife about a $3,000.00 debt from 1999. My friend is not sure if the debt was his his wife’s or both. There had been no action or contact for over 10 years. My friend received a certified letter demanding a the payment of $10,000.00 for the original loan cost and interest. The letter stated that the collection agency would start a garnishment against the wife’s wages and report the debt to the credit bureaus. The wife contacted the collecting agency to dispute the debt. After numerous threating letters and telephone calls my friend gave in and started making monthly payments of $200.00. What’s very upsetting to me is that they are paying $200.00 per month on a demand of $10,000.00. From what I have read it’s my understanding that the SOL has been reset since a payment was made. What’s confusing to me is that if the SOL has run its course. In New York the SOL is 6 years. One would think that if the SOL ended after 6 years collection agency’s cannot come after you. It appears that this is not the case. Did my friend re-set the SOL by making a payment 18 years later? It would make sense that the SOL clock would re-set if an agreement or payment was made during the 6 year SOL period but not 18 years later. Since a total of 3 payments have been made can the collection agency notify the credit bureaus about this debt? If my friend were to stop paying because she cannot afford the $10,000 can the collection agency file a court action? If payments are stopped can the collection agency have negative information placed with the credit reporting agencies? My dear friends have no idea that I am writing about this. My dear friend of 50+ years is totally disabled because of cancer. His wife only works part time earning just $200 per week. It’s very difficult paying a $10k debt $200 per month on a salary of $200 per week and a monthly Social Security check. Any advice is greatly appreciated and I thank you in advance.
George C.
If it were me I would file a debt collection complaint with the CFPB. They were tricked and deceived into paying, so not sure the reset of the SOL would stick.
I received additional information from my friend today. It was not a collection agency that sent a letter to my friend. The letter was from a marshal in New York. It was a NOTICE OF GARNISHMENT. The notice stated that a judgment has been entered against the above named debtor. It read as follows: Judgment Creditor, Capital One Bank, AAO Citibank vs Donna Doe. (It listed my friends true last name) Judgment Debtor ( I put Donna Doe.) The notice is dated December 5, 2016. The notice also stated, IN ADDITION, INTEREST FROM 12/05/16 will be calcite don a daily Dasia’s. You will be notified of the final balance due when your payments approach completion.
JUDGMENT……………………………………………… $4,312.17
STATUTORY MARSHAL FEES………………..$0.00
POUNDAGE…………………………………………………$453.65
EXPENSES…………………………………………………………$7.30
INTEREST……………………………………………………$4,753.57
TOTAL………………………………………………………….$9,526.69
The notice states that all payments should be marked with your name and this docket number: G12311 and payable to Marshal Stephen W. Biegel.
I could be wrong but I don’t believe the docket number is really a court docket number. The number G12311 appears to be a short number for a court docket number. I believe docketbnumbers usually contain date.
Any advice as to what my dear friend and his wife can do at this point? I mentioned before that 2 payments in the amount of $200.00!each have been made.
Thank you and advance for your knowledge and advice.
George C.
Connect your friends with an experienced debt collection defense attorney in New York. I can email you several dozen with the experience you need if you like?
Thank you for the advice. Please email the names of debt collection attorneys.
I wrote you just a few minutes ago about my friend of 50+ years. I forgot to state that the debt is in New York.
I have read many comments on your website where you had given good advice to many people now I’m hoping you can give me some good advice
I have a very dear friend of 50+years. My fried had taken out a loan for $3,000.00 back in 1999 18 years ago. A few months ago a collection agency contacted my friend demanding payment of $10,000.00 for the original loan interest and other cost. I only learned of this today. My first reaction was to tell my friend that I believe that may be a statue of limitation on collecting a debt that old. I explained that I had heard years ago that so long as no payment was made the they may not be able to collect. My friend said that due to repeated calls and letters and threats of having his wages garnished he decided start paying $200 per month. My fried has excellent credit and was afraid that the credit bureaus would be notified and his credit would be ruined. Am I correct that the SOL clock has started again since three $200.00 payments were made? Most important, can the collection agency notify the three credit bureau’s on a debt that is 18 years old? A better question would be can the collection agency now notify the credit bureau’s on this 18 year old debt since payments were recently made? Can the collection agency bring a court action since payments were made 18 years later? Any idea as to what would happen if my friend stoped paying at this time?
Thank you in advance for any help you may provide.
Talk things over with an experienced debt collection defense attorney in your state. A debt this old was likely passed the SOL to sue and for credit reporting. Nothing can legitimately restart the credit reporting, but payments can reset the SOL in many states. But my concern is that your friend could be dealing with a scam debt collector.
Thank you for your response I too thought it might be a scam collection agency.
Hi,
I had a voluntary vehicle repossession in March 2008 from citibank. Yesterday I received a local call from a law firm about de $17k debt. They wanted to set up payments and I declined, then the asked for my mailing address and said they’ll submit my file as refusal to pay. Can they come after me almost 9 years later? (I live in Arizona).
Check out this video about how debt collectors use pressure words and phrases to get you to pay. Refusal to pay is one of my favorites and I cover it in the video.
Just to be sure, were you sued on this debt in the past?
No, I was not sued, and a couple of years ago I hired Lexington Law Firm to clean up my credit from old accounts and such, and this account was not showing in my credit report. Last year I only had 4 collections and they were all under $200.
The SOL in Arizona is 6 years from when you stopped paying. If they file in the court your defense is will be simple (and you do have to respond to the suit).
Thank you so much!
If they sue (I hope they don’t), I will share that information in here as well.
Hello,
I appreciate your time. Recently I received a call from a a guy at xps. Not sure how he got my work number but he told me that sprint pcs has filed a lawsuit against me for cell phone charges. I never heard of nor owned the account. I don’t have the money for an attorney up front for several reasons but I need help. I can hardly sleep at night because of this. It’s either a scam or someone stole my identity. I filed a complaint with the ftc but have yet to receive a response. Thank you for any help that you can provide.
Have you checked your credit reports to see if anything is amiss? You can pull your credit for free once every 12 months from this site http://www.annualcreditreport.com
You will also what to review this page about debt collection scams.
Thank you. I will certainly do both of those things today. I pray that it’s a scam.
Hi,
I have a hispanic employee ( of about 20 years), who has had his wages garnished. I am witholding 25% of his weekly pay. The situation is he claims he doesn’t owe the debt (which after I contacted the collection agency that got the court order) is actually 2 debts – one for about $5,000 for a supposed furniture debt and another for about $13,000 for credit card debt. According to my employee, he only had a credit card for about 2 weeks, years ago, paid it off and never has had another credit card. He did purchase furniture years ago at the furniture store, one of the receipts stated PAID. The bottom line is I feel sorry for him. I believe he is the victim of identity theft and when the collections agency took him to court, he ignored it! This was back in March of 2013. I said at the beginning he is Hispanic because I believe that plays into his ignoring the court summons. Back about 6 or so years ago, there was another person in our town with the same name who also assumed his identity (by claiming my employee’s residence was his, etc.) He dealt with that right away, with my help and was able to get the business man to admit my employee wasn’t the same person that owed him money! Do you have any ideas that could help him?
Where are you located? I will email you some Spanish speaking legal resources you can connect him with.
Hi there. I had a situation that left me behind on payments on a truck I had back in 2011. Bank of america was the lender. I was behind a 2 months then made a payment so then I was only behind a month. Two weeks after that payment they took the truck …. I tried to settle with them … and we couldn’t find a payment icpuld afford… they sent me to collections I tried to settle with them but they would. Ot take anything less than $5,ooo… I ceased contact with them as I just couldn’t afford that. Flash forward to 2016 The account has been closed off on my credit report now for a while … bank of America called me today trying to collect the debt of the truck and for even more money than before ….. not sure what to do … I’m in California
They cannot sue passed 4 years in California. If it has come off your credit reports, there is little left to compel you to pay anything, let alone the inflated amount.
Make sure and confirm the last time you paid anything on this was more than 4 years ago.
Knowing all of this, are you still motivated to settle this old debt with Bank of America?
Someone just called for a credit card debt that was made 2002.I live in Tennessee.
Did you get any additional information from the collector?
Yes it was for a MasterCard.They want me to start paying.
What bank though?
I would not start paying on an account from 14 years ago.
Ok I got a phone call saying they were summing to court for a bill that is 17 yrs ago can they do that.
Check out my article about debt collection scams. It is highly likely that is what you are dealing with.
I have an old debt that I co signed with my Ex husband past the SOL just now showing up on my credit report. I have tried to contact the credit agencies which did not remove them from my credit score. Also, it is listed in the Divorce Decree that he is responsible for the account. What actions should I take? My Ex husband has already made one payment to the new collectors. I did call the original account owners who informed me that it had been sold.
Who is the collection company involved now? What credit or finance goals do you have in the immediate future? How long ago was it that the regular monthly payments were stopped to the original creditor?
Hi. I just received a call from a collection agency regarding a past credit card debt. I was able to get this debt taken off my credit report a couple years ago but reappeared a few months ago, They are trying to settle at half or make monthly payments. They also threatened to file a 1099C with the IRS as this will be considered income. This is quite distressing as I had the impression that they can’t take action when the debt is 10 + years old.
I would appreciate your feedback
Thanks
Laura
Who is the collection agency?
What state are you in?
Are you certain the last time you paid anything was more than 10 years ago? And if you are, I would immediately file disputes with the credit bureaus about this debt being too old to be on there.
Old credit card from 2003…getting calls from a company threatening to take to court. Is this legal? Haven’t received anything other than 2 phone calls.
It sounds like it is a zombie debt. You may be dealing with a debt collection scam. Read that article for some options.
I’m not sure that I have this old debt with HSBC.
I have two collection agency contacting me about HSBC accounts two different amounts. One company provided me with an account number the other gave me an eight digit number. Neither matched. How do you get old account information if you want to resolve this debt?
None of these accounts are on my credit report.
Did you ever have some debts that went unpaid? If not, have you ever confirmed you were a victim of identity theft?
A company is claiming that an old checking account from 2006 is the source of a pending lawsuit. I have asked for them to verify the debt, but they insist I verify the debt with Wachovia (now Wells Fargo). If I don’t pay, then they say they will send it to litigation.
I have received no written notice from the company. Only a phone call that I returned to start this nightmare.
I live in Atlanta, Georgia, and I have been a resident of Georgia my entire life. They claim tolling now allows them to tack on an additional 10 years beyond the SOL.
Any advice?
This has the hallmarks of a scam. The tolling comment is sophisticated, no doubt, but not accurate.
They are called allied financial solutions from irvine ca.but i dont see nothing about them online just scams.
And you did not provide them with any bank account or other payment information?
I gave them my debit card# but i cancelled it from my bank as lost or stolen.
What if i signed the email they gave me? Feeling really dumb.
Are you talking about a read receipt or an esign document? Post more of the details of your situation.
They sent me a esign cuz i owed a debt back in 2003 but they want triple the money they said they want to file a lawsuit, i called the client and i dont owe them anymore.
I have a collection agency that has called my father in-law and my mom saying I owe an outstanding debt to Sprint from 2001, it is now 2016. The thing is I did not even have a cell phone in 2001. I do have a current plan with Sprint and have been with them for nearly 8 years now and they have never once tried billing me for a party account or contacted me in any way. My account with Sprint is current and paid, so I don’t understand where this collection agency is getting that I had an account in 2001 or how they got my father in-laws number, who I didn’t even know until 2006 or my moms number. If they’re working on behalf of Sprint, they should have all my current info, phone number, address, etc…and not be contacting and harrasing my family members.
It is likely a scam. Do you have the collection agency name and contact details you can post?
Hi. I had a vehicle repossessed in 2003 in California. In March of 2010, while living in Hawaii, I was harassed and fell for scare tactics and made one payment to a collection company. I realize this restarted the statute of limitations. I am now back living in California and received a call from another company saying they represent the collections company I made the payment to in 2010. This happened yesterday 9/19/16. Seeing as this is past SOL for both California and Hawaii in regards to March, 2010 should I be in the clear? I told them on the phone that I lived in Hawaii in 2010 but that they had the wrong person and the debt is not mine. He asked if I was back in California and I said yes. He said they would investigate and get back to me. When I said it was not my debt repeatedly he seemed to kind of lose interest. I am trying to gauge the seriousness of this. Any help would be great. Thanks
Oh also he asked if I dispute the debt and I said yes.
It sounds like you are in good enough shape. Double check to see this is not appearing on your credit reports.
Since I am on disability I am paying off my private loan very slowly! But the other I haven’t got a chance to pay for anything for several years, they don’t tell student loans will equal what you make on your first job.
Do you need credit card debit or just any debt including medical bills my last surgery was only 2 years ago so I know that won’t count. But I have much older medical bills from doctors, neurosurgeons, pain management doctors, and places that do scans which I have had many I just got on a site to get my updated equifax paperwork.
Then when I purchased my new car because my other was dying lol I paid off some creditors completely and they promised to completely remove it from my credit report but I had a major anxiety attack when I went to deal with price for my car when I noticed they were still there but I did make them send me letters that I paid the debt in full.
Then one of my old credit cards written off the death finally and a company called ARA called me and said they will file a injunction against me if I don’t pay the debt. I called capital one legal department and they said they didn’t sell it to them but these companies just buy bad unpaid debt like my mine and take them to court even though I am on disability which doesn’t pay enough for living cost they said they would take money out of my disability check. Which seems there should be a law against and teaching seniors in high school should be taught that they will be bombarded by credit cards which is intensifying to young 18 & 19 years old. It’s sad how many people my age are living with their parents again because of this type of situation but at least mine is for medical reasons!
Any debt collector threatening your to garnish your disability is likely running a scam. Read this article for more on what you can do about debt collection scams.
If you are rebuilding your credit after collections and other setbacks, check out this page about resolving unpaid bills to repair your credit.
Hey there, I loved and learned much from your article. I got married right out of high school and as you know credit card offers come in fast and by the truck load. I was dumb and nieve I signed up for many credit cards and my ex husband as the co-signer and when we got divorced 3.5 years later when I caught him cheating with another woman thanks to my friend who called me I went and caught him red handed since I was 6 months pregnant with our son (2 child), I filed for divorce and I wanted all the debit divided evenly since we both used the cards but of course the judge left me with all the debt.
With being a sing mom of two beautiful kids and all the many credit card debits to deal with, his repo truck I purchased him for his birthday when married which he was ordered to pay but didn’t pay and that debit got added on to be as well, and to make things worse I am on disability now after I had 9 lumbar surgeries with more to come and a tumor inside my spinal cord growing larger killing nerves permanently as it continues to grow; which of course adds tons of medical debit which I was always told couldn’t be added to your credit report but that was wrong. Since I went to college and worked as a single mom all on my own I had no extra money. I am sure you can guess that I also now have student loan debt which is not close to 7.5 years and as well as some of my medical debit.
I have been trying for several years now trying to correct and fix my credit score but even though some of the old dedt I paid off and have copies of me doing so they are still on my credit reports which gave me an anxiety attack and made cry because I worked so hard and they promised it would be removed years before I had to purchase a vehicle.
It really bothers me cause the only thing I ever wanted for my children and I is to by our own home, but it doesn’t seem like it will happen ever or until I inherit my parents home when that awful day comes.
If you can give me any advice and some I can contact for help that I so desperately need that lives in Webster, TX or Clear Lake, TX I would really appreciate it and put you in my prays forever!!! I am tired of seeing my cheating ex-husband buy a home, new truck, new gun and safe and separate safe for the ammo, having a child with his new woman before our divorce was final, bringing her in my labor & delivery room which sent me into anxiety attack and stress and my son was born a month and a half early because to stress of catching him red handed with this other woman, and my life besides my wonderful kids and my Dachshunds being crappy and just spiral down and down.
If I can get these 16 year old debits of my credit reports and see my score go up I would just jump for join, not only did I get all the debit but I only get $400 in child support for both Iof my kids and seems like my lawyer should have gone after Alimony and now if I want to pay to take him to court I could get him to pay something because I became disabled.
Thanks In Advance,
Alisa
Please list each old debt that is on your credit reports. Include the date you stopped paying on the account; whether that original creditor is still showing on your credit, or if it is a debt collector; and also the balance owed.
When did you stop paying on your student loans? How many are private and how many federal? What are those balances?