Old Debt

[JLane]

Maryland is where the loan was given
We live in Virginia now

About 8 years ago my wife defaulted on a loan to American general Finance. It’s no longer on her credit report and AMG wrote it off as a loss. 2 weeks ago we got a letter from a collection agency stating that they had acquired the outstanding balance from AMG and that if she did not pay the balance it would again reflect negatively on her credit and they would peruse civil avenues to obtain the balance. It all sounds a little fish to me and I think were being taken to the cleaners. Any info could help.

 

[Debt Guy]

The Statute of Limitations for both open accounts and written agreements in Maryland is 3 years. Virginia is slightly longer at 3 years and 5 years respectively.

Clearly the account is outside the statute of limitations for both states.

From what you indicate, the debt is also too old to be reported to the credit reporting agencies.

I suggest that you send a letter to the creditor instructing them to cease and desist all contact as the debt is time barred. Also, say that any negative report to any Credit Reporting Agency is time barred and is a violation of federal law.

This part is optional -- you could also say that they had already violated the Fair Debt Collection Practices Act by threatening civil action and a negative credit bureau report on a debt that is time barred.

Send the letter certified mail -- return receipt requested. Keep a copy of the letter and the green card that comes back after it is delivered.

Watch your credit report to see if it ever shows up. If it does, drive a stake in their heart.

 

[JLane]

Thank you

Thank you very much