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I just recieved a letter telling me I owed money from 7 years ago?*

I recieved a letter saying i owded money (less than $100) from appox 7 years ago. This amount is with centerlink, you would think they would have sent a letter or just taken it from a tax refund, of which i have had every year in the last 7. The letter was from a second party, a debt collection agency. What is anoying is this has come out of the blue, as far as i was aware, I thought it was paid. Now I can't remember that far back. Can anybody tell me if they can still do this?

Answers:

1) They can but you can appeal it at the Centerlink office.

2) Each state has a statute of limitations for collecting a debt. You would need to know your state rules on this. 5-7 years is normal. Once they reach that term, they cannot legally enforce collection. If I were in you shoes, I would check your credit report to see if it's in there . If not, then I wouldn't get too worried about it. You could ignore them. You could tell them you have no record of any such debt and demand they provide proof. Or , if you actually owe it, you could pay them

3) Don't pay it. If they start to harass you tell them your lawyer told you its passed the statute of limitations since it's from 7 years ago. Run your credit report and if its on there then dispute it with the agency. It costs you nothing but it will cost them $75 to keep it on your report. If it's $100 then it's not worth it for them to fight your dispute. Also, you can ask the collection agency to settle for a lesser amount (usually they'll take half of what's owed...sometimes less), just to clear their books. IF YOU DO THIS MAKE SURE YOU WRITE "PAID IN FULL AND REMOVES THIS FROM MY CREDIT REPORT" on the check. When they cash the check they are by law agreeing to clear you of all debts owed to them.

4) no

5) http://www.creditinfocenter.com/rebuild/statuteLimitations.shtml The above link lists the statue of limitations for each state. You didn't mention what type of debt this was (credit card, loan...etc) but the link explains things pretty well. If the debt is past the statue of limitations, simply send them a letter (certified return receipt) stating as such and that they are not to contact you again or pursue any other collection activity. Also include a little tidbit in there saying this debt is past the 7 year reporting period and you're aware of your rights under the Fair Credit Reporting Act, so this better not show up on your credit report. If the SoL hasn't expired, send them a demand to validate letter (again, return receipt, more info in link below). Chances are with this debt being that old they either don't have the records needed to validate it, or they won't waste the time. http://www.creditinfocenter.com/rebuild/debt_validation.shtml There's probably a 90% chance that you can rid yourself of these people using one of those steps. Good luck and feel free to contact me if you need any help.

6) Dispute it with the Credit Bureaus. Do NOT send anything to the collection agency. SOmetimes they dont have all your info and when you call with the account number they will say "Oh to verify this I need your SSN" or "Date of birth". The more you give them the mor ethey have. Dispute saying "I dispute the debt, please validate and provide all documentation you have, including the statute of limitations for this debt" Do not sign it, just write your name at the bottom, send it in Certified Mail Return Receipt Requested.

7) Hi, I used "Credit Solution" to settle my debt and improve my credit score.They managed to reduce my debt up to 58%.It's legitimate.I came across this company on NBC News special edition.Check it out here: http://simurl.com/vohmer

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