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.
I had a private student loan debt that was in collections 5 years ago. I disputed it with all 3 credit bureaus and won it has since been completely removed from my credit report as if it never existed. Just recently I have received a letter from a collection agency regarding this loan. I live in Pennsylvania but I required this loan at a college in West Virginia. Not sure how to respond to this agency.
Hello , I was recently contacted regarding a 1300 dollar debt from 19 years ago They left a voicemail claiming the clerk needed to validate my address so they may have my signature. For legal action. To be honest I don’t remember the debt . I do t recall receiving any notices. I called them back and I asked how old was this debt . She explained it was from 1999. I said 19 years ? I don’t remember having this account 19 years ago. I then stated Isn’t that past the SOL ? She responded with something about a “towing” law that allows them to collect . I asked for her to send more documentation. I finally received a letter and it’s basically a collection letter . I am replying via a certified letter to validate the debt (letter I found of the web to dispute old debts ) . The letter I received did not include any additional information. Other than them trying to set up a payment plan. I checked my credit and have no collections listed . Have you heard of a “towing ” law ?
I received a call last September stating I owed USBank for overdraft fees for an account that was closed back in 2007. I closed the account then and never received any letters stating I owed them. I have lived in the same home since 2008. Never received anything in the mail. Today I received a call from another attorneys office stating I have a pending lawsuit and they were going to serve me with papers. He said the charge off date was from 2014. But the account was closed in 2007. Is it still legal.
It sounds like a debt collector scam to me Bradley.
I lived in Hawaii from 1999-2001 when I incurred the debt and defaulted (SOL 6 years) then moved to Texas from 2011-2004 and now I live in Florida. Received a phone call and they threatened legal action. Has the statutes of limitation passed in this situation?
Way passed the SOL to sue or credit report.
The threat of legal action, when none can legitimately be taken, may be a violation of your rights.
You may want to talk to an experienced debt collection consumer law attorney in your state about options you have that may be worth pursuing.
About 4 years ago I was sued by a debt collection agency. Due to the “lack of standing” the judge ordered that I was not responsible for the debt. Several months ago I began receiving letters from a different collection agency concerning the same account. I wrote a letter, sent a copy of the court documents as well as where they could find the original documents if necessary. They still won’t leave me alone. What other steps do I need to take so they realize they were sold a resolved account from another agency?
Who are the collection agencies or debt buyers involved?
I do not see too many judges dismiss a collection lawsuit where they clearly and unmistakably write in the order that you are not responsible for the debt.
I just saw the video, thanks how do I find out if my debt case previously went to court and a judgement was made? Also if I check my credit report and neither creditors are on my report,I send the new bill collecter a cease communication letter.Is this right? Because I’m stressing over this..
You could search the civil court records in any counties you lived in for this period of time. You can also call the collector and ask if there is an existing judgment, and if so, in what court, where you can then go look it up.
I typically recommend sending a cease communication letter on zombie debt. Here is a really good resource for identifying your rights and needs when dealing with debt collectors.
Hello again Mr Bovee, well I did as you suggested, I pulled my credit report from 2 sites Experian and Equifax, the 3rd was down for some reason we couldn’t login? But the printout say I currently have no collections in my file, currently no bankruptcies, no judgements and no liens. I do have a soft inquiry from Asset recovery associates on 1/26/17 that’s also the day they called and harassed me at work saying they were bringing the sheriff to my job to arrest me on Friday The 27th. They never showed up. What should I do? I’m sorry for bothering you but your the only person that has any knowledge that can help me. God bless.
If they are collecting on a judgment debt, it may be too old (7 years) to appear on your credit reports, but still valid. I would look up your name in the county court house and see if you can find where you were sued for collection. You could also request debt validation from Asset Recovery Associates.
I’m from California.I received a collection letter, from ARR collection in Villa park Illinois stating I owed another credit company a $20,000 + debt ,and this company purchased the debt? The last time I made a payment on the original debt from the original creditor was in 2003,I went to prison in 2004,I was released in 2007, and this year is 2017
Was there ever a judgment entered in court for the debt?
I never even went to prison for that,I was in a car accident and killed a man (vehicular manslaughter), that’s why I failed to make my credit card, payments.this is the first time I’ve personally received a letter addressed to me.14yrs later.should I write them a cease communication letter.,I haven’t contacted them yet.
I understand that. I want to know if there was ever a judgment on the debt because that is likely the only way the debt has legs. If there was no judgment to date, this is likely zombie debt (watch that video). And in that case, I would send a cease communication letter certified mail if it were me.
But if this was already a judgment, it can be renewed, and sometimes over and over, and will still have to be dealt with.
How many people get sucked into the wanting to make good on their part debts but in the end, only end up hurting themselves more or again?
Fewer than you would think. Late stage debt collection has an extremely low margin of success.
I just got a call from a collection agency for a debt that was from 2009. I am currently trying to get my credit in order to purchase a home. I know this debt was still on my report but i also dealt with a lot of past debt from my past amd wasnt sure if this was really one i had already took care of. I told the lady that i fealt this had already been addressed and that i wanted a break down of the debt in writing but In an attempt to make good on my credit report figured I should attempt to settle the debt. I agreed to a payment not to come out until 2/10/17 so I could try to find my info showing it was settled. I looked through my stuff and it wasn’t settled but this debt is scheduled to come off my report in April 2017. I immediately called cancelled my payment and told them I did not authorize anything regarding this account. Did I just reset the time of this account being on my credit report? I’m freaking out thinking I just screwed myself by trying to do good by my past debtS. Please help.
Who is the collection agency and creditor you are dealing with?