Statute of Limitations on Collections?

reese74, don't make any payment agreement to the collection agency. They are trying to locate for someone who has been wrongly related with you. Or, they are trying to make some easy money from you. Be careful and know your legal rights.

If the collection agency believes that you owe something to Bally's, they must give it to you in writing. Send a debt validation letter to the collection agency's mailing address and request for the account details. As per the federal laws, the company is required to send the details within 5 business days after placing the initial communication. If they don't send anything, you can write a letter to them. Send this letter through certified mail with return receipt requested. This will ensure not only its delivery to them but will also prove your actions taken to resolve this matter.

The statutes are applicable on all kinds of debts owed by a consumer. Based on the date of last activity and the place where the account took place, every state has a specific statute. You must check the SOL in your state and know if a particular debt is within the legal collection period. If the account is past the SOL period, you can legally refuse to pay the account. You can't be forced into any legal actions after the expiry of the term.

In the present case, you are sure that you never had any account with Bally's. So, SOL is of nowhere related with it. Ask the company first to give you the details of the account so that you can verify it properly. Without the information supplied to you, you can refuse to pay anything.

SOL in NY is 6 years from the date of last activity.

Thank you John and TMD. I had an attorney friend check into this "lawyer" and it turns out he's just like the rest of the sleeze that try to use intimidation to collect on accounts that aren't even real. They apparently produce false documents and, from people who don't know better, get money for things that aren't owed. I've filed a complaint with the Attorney General's office in NY.

Thanks again!

I got a call and a letter in February 2006 from a company called Merchant's Credit Guide Co. I knew the debt was old (19 years to be exact) and choose to ignore them. I was wondering the outcome of your situation. Please ellaborate.

Hi Jackie

If you have not made any payment on this account within the recent times, this debt should not appear in your credit file as it is past the 7 years reporting period.

The debt collector might have purchased this account hoping to recover the money from you. They will insist you to make a small payment on this account so that it can be brought back under legal actions. If you have paid nothing, reply back to the company mentioning the fdcpa and the FCRA laws. You are under no legal obligations to pay this account.