DOUBLE DIPPING

Dec 19, 2011

DOUBLE DIPPING
by: debtcollectionanswers.com

If you do not think you owe the debt you are being contacted about, there are a couple things you should know.

First, my resources show that the statute of limitations (SOL) on credit card debt in your state is 6 years. The 6 years begins on the date that you last made a payment on the debt. Therefore it appears that the SOL on that debt has expired. This means that the collector is not entitled to sue you for the money it wants you to pay and if you are sued, you can use the fact that the SOL has expired as your defense. Therefore, you may want to write the collector a cease and desist letter letting it know that you do not want to be contacted about the debt again.

Once the collector receives your letter, it is legally obligated not to stop contacting you other than to let you know about an action it intends to take to to collect from you. (Remember, if the collector sues you, you can use the SOL on the debt as your defense.) Read our advice on using a cease and desist letter to stop a debt collector.

Second, the federal Fair Debt Collection Practices Act (FDCPA) gives you the right to dispute the debt and to ask that collector verify (confirm) the debt. If you do, the collector is legally obligated to provide you with written proof of the debt, assuming you make your request within 30 days of being contacted about the debt for the first time. It's always best to put your request in writing and to send your letter certified mail with a return receipt requested. Make a copy of the letter for your files.

Third, if you ask for confirmation of the debt, be careful! Why? Because if you agree that you owe the debt or offer to make even a small payment on it, you will start the SOL on the debt running again. Should that happen, the collector will be entitled to sue you for the money for the next 6 years. Warning: Some debt collectors are in the business of purchasing very old debt -- debt for which the SOL has expired -- and then contacting consumers about it. They hope that the consumers will assume that still owe the money and that they will unintentionally reactivate the SOL on the debt, which means that the collectors will be able use the threat of a lawsuit as a way to pressure the consumers into paying the debt.

DOUBLE DIPPING

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DOUBLE DIPPING