Can a collection agency legally collect on a debt

Collections don't stop until you pay the debt. They will have to follow the laws while doing their collections. You must get confirmed about their authorization before sending money.

If the debt is past the statutes of your state, you get the legal protection. They can't sue you in the court. But if the debt is within the statutes, they will try for a judgment against you.

Actually there are limits on how long a debt can be collected. From what I can come up with its generally six years from the time the debt was charged off (also known as the DOLA - date of last activity on your credit report), however states do vary from 2 - 15 years depending on what type of debt. As long as you don't live in Kentucky or Rhode Island, it can't be more than 10 years from DOLA. Of course you should contact someone local to confirm this.
Good luck!

Welcome to the Forums :D Here is some info on SOL for you at http://www.fair-debt-collection.com/statue-limitations.html it should tell you all you need to know for your state. The date of last activity is the last time you paid on your account. If you made a payment in 1999, then made another payment to them in 2005, then the DOLA would be 2005. Hope I didn't confuse you !...KAren Alot of people get scared and make a payment on something past the SOl, and it starts up the clock again.

I found this on credit.about.com:

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What is considered "Date of Last Activity" I am showing several collections that are well over 10 years but are still showing. HELP!

Lady, did you make any payments on these debts within the last 10 years? Making one payment resets the DOLA. Certain slimy CA's have been known to reage debts so they can keep reporting them longer.

The first thing I would do is dispute the old accounts as "not mine" with the CRA's.

Technically, if it is out of SOL, you can tell them to go away.. but usually they will just resell the debt to another JDB.

I've seen folks send a debt validation letter to them asking them to validate the debt, and they magically stop calling. They don't like to play with smart people that know their rights I guess :)

Thank you for your responses they have been very helpful.

Is this normal? Why would a collection agency buy a 10 year old debt? The probabiluty they'll be able to collect can't be very high...

There are statues of limitations...if you pull your credit report it can tell you how long it will sit out there on you....BUT if collections agencies keep reselling your debt it gets a little confusing....and makes a mess of your credit report....to be honest..if you call the new hounds you might be able to settle for next to nothing and get rid of the headache all together.....

Yes but there is a high chance that if you settle and pay a collection agency, they won't keep record of the payment and will in turn sell the debt to yet another agency that will say there is no record of you ever paying.

I have a question regarding the Statute of limitations in collecting an unpaid open ended account (credit cards, store cards). I lived in AZ when I opened my accounts but moved to NJ when I was no longer able to pay. Does the law require the debt collector to honor AZ or NJ statute of limitations? If it is AZ, would a NJ court or Judge still allow them to proceed with obtaining a judgment?

I thought if a debt has not been paid and is past SOL, creditors are able to renew the debt through a small claims procedure?

they can't do it that way.only a payment on the account restarts the SOL.in fact if a CA does try to sue on a debt past the SOL.all the consumer does is present proof of such and the suit is thrown out.never heard of what you spoke of.

can someone sue you for a debt after they turn you over to collections?

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A collection agency can legally collect on a debt ,but there are several restrictions under the state FDCPA.The state law prohibits debt collectors collecting debts under sec 1788.11(a).Please refer to the laws under FDCPA:rolleyes:

A collection agency can sue you in Superior Court. A collection agency may not sue in Small Claims Court. :p

If you still feel that your rights are violated you can always lodge a complaint with the Attorney general's Public Unit Inquiry or the Federal Trade Commission;)

Yes they can. Collections is part of the litigation process. Attoneys office both collect and litigate

Hi,
After went through your question I have found out that you area bit afraid...But no need to be afraid,In terms to sue you ,it totally depends on the amount you owe with them.If you owe them a very small amount then even if the account goes into collection agencies,the chances of getting sued is less....

well with regards to getting sued for delinquent debts with collection agencies , yes you can be sued by the collection agencies for delinquent because after all they if they have a license number to conduct collections in your state they can also sue you for the debts that you refuse to pay or you cant afford to pay but before getting into all that you may just want to check out whether the debts have crossed the sol of your state send them a validation letter and continue doing that at lest a number of times if you do not get a prompt response from them and if they file a suit against you in that case you have enough off proof to prove that you did ask them to validate the debts but they dint so you will have an upper hand (all the best )

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Yes They can. Which state are you from? When did you take out the loan (debt)? Is it past SOL?

well soap lady i think you need to get your facts right and then comment on any bodys comment you are staying in The USA and anybody can sue you for anything yu can be sued no matter what until unless your debts have crossed the statute of limitations if you want to do your readings again