Business Debt, Collections Debt collection

[Sksmith77]

I received a call from a courier who explained he had attempted unsuccessfully to deliver a summons. He gave me a phone number and case number . I called and it was a debt collector. He explained that they had purchased the debt for a credit card I had in 2007. They are pursuing legal action for a total debt of $2000. The last activity on the account was 2008. He said I could still set up a payoff and avoid civil action. He said I could do monthly payments. He wanted to get my debit card info to set up the payments. I declined to give him that. I ask that he send some offer letter by email. We didn't agree to any thing nor did I make a payment. My questions are :

1. Has the statute of limitations been reached for this debt?
2. If I was to make a payment does it reset the statute of limitations?
3. I'm of the understanding that no longer can debt collectors threaten legal action if they have no intention of actually doing it. So why are they threatening this ?
4. What should I do now?

Any help would be appreciated.

 

[Proserpina]

Classic debt collector tactics.

1. Yep, time barred
2. YES!
3. Because they know that most people don't know their own rights
4. Go here http://www.occc.state.tx.us/pages/consumer/education/DebtColl.htm

I bet they didn't tell you that even with a judgment, they can't touch your wages, and the exemptions in Texas are VERY generous.

 

[fredrikklaw]

SKSMITH77…

The statutes of limitation for debt collection can vary from state to state and can be anywhere from 3 to 10 years, but Texas seems to logically adhere to the basic principles of contract law which is what a credit card account is after all; a contract. Accordingly, the statute of limitations for bringing an action for a breach of a contract is either 2 years (if it is an oral contract) or 4 years if the contract was expressed (written).

So, since Texas's statute of limitations for collection of a breached written contact is 4 years and that your last activity on the account was in 2008, the collection agency is basically out of time and any action brought against you will be considered by the courts as 'time barred.' But this does not stop, nor does it prevent creditors or collectors form pursuing you for two basic reasons: (1) that the collector does not know about the statute of limitations to begin with or (2) he hopes that you are not aware of this fact and will be scared enough to make a payment.

Also, the expiration of the statutes of limitations does not prevent the collector from commencing legal action, also in the hope obtaining a default judgment in the event of your failure to respond. It is highly unlikely for the collector to commence action for such a small amount while being way past the expiration of the statute of limitations, especially considering that it would cost at least three times that amount to commence the action.

But respond you should, if an action is filed where all you have to do is raise the affirmative defense that the action is time barred and that would be the end of the matter.

So the answer to your first question is: YES! The statute has expired but be aware of some unscrupulous collectors filing suit anyway in the hope of a non-response. As for your second question, the answer is also YES. If you make any kind of payment or reaffirm the debt in any shape or form, then the statute of limitation is reset and the clock starts at 0 and you will be on the hook again for another 4 years.

Now, can they threaten legal action when they have no grounds or intention to do so? YES again as it is perfectly legal to threaten another with legal action. But obviously the law draws the line at making criminal threats. And last but not least, as to what you should do; NOTHING! Let them call and send letters till they are blue in the face, or run out of postage stamps and all you have to do is hang up the phone or ignore the letters.

I must also add that in Texas, attempt to collect a debt beyond the statute of limitations MAY BE considered a violation of the law but folks are only encouraged to contact an attorney, which tells you that it is not considered a serious offense and you would be wasting your time and money by going to an attorney.

fredrikklaw

 

[army judge]

Texas, just a small little state adhering to human freedoms.
How much longer?
I'm just hoping for a few more months.
Until then, Texas, freedom's last bastion in what was once called The United States of America.