A company purchased an old debt, is it still due to be paid?

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I have received a letter stating that I owe a company a bill from 2005 for some books?? I do not recall placing this order, but it has my name and address and the amount due. It says that this new company RMI purcahsed this debt in 2009. I was told that if a 3rd party or whatever purchases a debt, then your debt with the original creditor is satisfied and you do not owe this new party. Is that correct? Also, it was in 2005, I have NO memory of this order being made, but like I said, same name and address that matches me, It was from a book club order by mail thing, which I usually buy all of my books at yard sales, used book stores, etc. I seriously do not remember EVER ordering books online?? Being that it’s 2011, shouldn’t this 2005 debt be off of my credit by now anyway?? So confused on this! I’ve been cleaning up my credit and paying some foolish debts I’ve gained over the years and there is this thing on my credit and some DVD club thing?? Neither of which I remember ever ordering from???

5 Comments
  1. Reply
    Woof
    November 10, 2011 at 6:12 am

    Wrong. If a collection agency (3rd party company) purchases the debt, you now owe that company instead of the original creditor. Debts CAN be sold.

    The period of time during which a creditor can take legal action to collect (i.e., sue you) is determined by your state’s debt statute of limitations. The collection agency can still attempt to collect even if the debt is beyond SOL. Your credit report, by the way, has NOTHING to do with statutes of limitation or whether the debt is “valid.”

  2. Reply
    Let me steer you
    November 10, 2011 at 6:39 am

    Yes, debts are bought every day. Lenders don’t want to take the time and trouble of trying to collect old debts, so they sell your debt to a collection agency for about 25% of what you owe. Then the collection agency comes after you to pay.

    Nothing illegal about it. You can certainly write the collector and tell them you need proof that it is your debt before you will do any kind of negotiating with them.

    Here is an excellent article from the Navy Times explaining what to do to combat collection agencies:

    http://www.navytimes.com/money/financial_advice/military_creditmatters_070528w/

  3. Reply
    RJ
    November 10, 2011 at 6:40 am

    7 years is the time it should stay. It may be a good idea to wait another year and argue statue of limitations. Or, if the fee is not that high, you can say “I do not acknowledge that I owe this debt or that it is mines, and this is not an offer to re-age the account” however, I offer to pay in full for the deletion of this account. This way if they say no, you can argue next year that it’s been 7 years. You would need to send the letter via certified mail.

  4. Reply
    Samantha Henderson
    November 10, 2011 at 7:14 am

    Yes they can legally collect that debt if they obtain all of the correct paperwork. I went through a program that worked to delete old info like collection accounts off of my credit report. They didn’t get everything deleted but the got like 6 out of my 8 collection accounts deleted off of my credit report. This is how they explained it to me.

    I believe the law is the Fair Debt Collection Practices Act. It says something like the collection agency can only collect legally if they have the original signed contract in their possession and the whole billing history. If they have that then
    They can collect and can report on your credit report.

    That is what the company that I signed up with did. They contacted all the collection agencies and credit bureaus and forced them to show all the information. And if they couldn’t then it had to be removed. From my understanding that is how it works. They got all those deleted off my report in like 4 months. It cost me a little bit but it was completely worth it to clear up my credit.

  5. Reply
    My Take on It
    November 10, 2011 at 7:19 am

    No. Collection agencies do not work like that. Collection agencies buy debt from other agencies all the time. If it meant that the new agency couldn’t collect on the debt, what would the purpose of buying the debt be? LOL

    Since this was from 2005, I would let it be. The time frame to sue you over this has passed most likely and it should age off your report in another 18 mos. (7.5 years from the original date of default in 2005)

    Have you checked your credit report? Is this even showing on there?

    http://www.annualcreditreport.com

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