Merchants Credit Guide - Ken Hughes Demanding payment on an account that was paid off 13 years ago. ripoff Chicago Illinois

Yes, they DO buy debts that have been paid, or do not exist at all. They buy thousands of 'debts' at a time for pennies on the dollar, and then send out mass mailings. They are playing the odds. If they get 1/2 of 1 percent to pay up, they have made a profit.

She DOES NOT have to prove anything. A 13 year old debt is NOT a valid debt, no matter if it was paid or not. The statute of limitations were up years ago, and therefore the debt is uncollectable anyway.

The letter is the way to go. Just tell them not to contact you anymore regarding this debt.

Disputing the debt is definately a good way to start. They legally must validate the debt. To contradict Jace's statements though, providing MCG provides validation of the debt, it would be up to the debtor to prove that the account was paid off previously. Maybe I am being naive, but most collection agencies do not buy debts that have been paid off. It is a bad business decision becuase any work they do on the account is for nothing. Whether they only paid 1/10 cents on the dollar for it does not matter either. Once a letter is sent, or a phone call is made, they have lost money on the deal.

My suggestion is simply that if you paid this off Sharon in the past, and have the letter, send a copy of it with the dispute letter.

"She told me that I had to gather the information regarding payoff of the account and provide it to them or the balance would be pursued."

This in itself is probably a violation of the FDCPA, since they provided no proof that they own the debt or that the debt even exists. Sharon, the burden of proof is on them. You don't have to prove anything. Don't send them anything that shows the debt is paid.

Do send MCG a letter requesting validation of debt. DON'T SIGN IT. Also send a letter to your state Attorney General and the FTC. If they keep bothering you without providing debt validation, send them a cease communications letter (forms here at the site). I doubt you'll hear from them again.

MCG is notorious for trying to collect debts that don't exist or are past the SOL. Don't let them intimidate you.