My 72-year-old mom was forced to pay decades of debt of $200 a month – a collector threatened her credibility, even court time. Can she stop after a year of payment?
Scott’s mom Beatrice has gone through some tough times after her husband died 25 years ago and was unable to pay her credit card bill. The credit card company canceled her card and sold her debt to an active and often asked collection agency, but never took legal action they threatened.
Eventually, Beatrice got back on his feet again, the debt collector stopped the phone and the credit score resumed. Despite this, Beatrice never paid the debt, and although she eventually forgot the debt, the debt remained unpaid.
Then, about a year ago, the debt collector started calling again. They threatened to hurt Beatrice’s credit score and took her to court. Feeling stressed, she agreed to start paying $200 a month.
But Scott believes the restrictions have expired for a long time and wonders if his mother (after paying for decades of debt each year) can simply stop payments.
Restrictive regulations are the time when a creditor must file a lawsuit to collect the debt after the borrower defaults. This varies by state and debt type, with open debt ranging from three to eight years, including credit card debt. In many states, written contracts, oral contracts and promissory notes are handled differently, and these regulations may be subject to longer limitations.
Typically, restrictions are calculated from the date the debt was last paid. If you make a payment, agree to a settlement or payment plan, place new fees on your account or confirm debt before the regulations expire, the restriction regulations will begin on your date. However, once the regulations expire, debts are prohibited. This means that debt collectors can still try to collect debts, but they can’t sue you.
Sometimes, debt buyers will recover debts that have long been forgotten and have been removed from your credit report. They may try to get you to acknowledge old debt or payments, and then they can restore the statute of limitations for such so-called zombie debt and allow them to take legal action to collect it.
Consequences of paying debts back The regulation has expired and it can be a grey area with status, adding to the confusion and complexity surrounding this issue.
In some states, such as Texas, partial payments are not enough to restart restriction regulations, but in other states, such as New Hampshire, where Beatrice resides, payments may constitute a recognition of debt and may be enough to restart restriction, allowing debt collectors to collect new opportunities for prosecution.
In Beatrice, she may need to continue paying because stopping them now could damage her credit score and could lead to legal action.
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If you find yourself being chased for zombie debt, don’t agree to payment until you confirm that the collector has a valid claim. First, request a debt verification letter that provides debt details. Under the Fair Debt Collection Practice Act (FDCPA), it must be mailed within five days of the first time the collector contacts you.
If the debt is not in your name, the collector cannot provide enough details, or you think they have filed an inaccurate claim, you can send them a debt verification letter within 30 days to object to the debt. If you have paid your debt, you can send them a proof and ask them to stop contacting you.
If they cannot verify your debt (e.g., if the debt is prohibited), you must stop contacting you and notify the credit bureau. If this happens, be sure to check your credit report and contact the credit bureau if the debt is not deducted. You should also keep a detailed record of all letters.
If the collector’s claim is valid, you have to pay off the debt, but you may be able to negotiate a better deal, such as paying only a portion of the debt or scheduling a payment plan. Make sure any agreement is obtained in writing; it should also make it clear that your actions will eliminate the debt.
It is best to consult a professional consultant or attorney specializing in consumer debt matters before making any decisions regarding payments, payment plans or other measures such as bankruptcy. There are also nonprofit credit advisers who can provide advice.
The debt of pursuing zombies can be huge. Arm your rights and exercise them is your best defense.
This article provides information only and should not be construed as advice. It is without any warranty of any kind.
