NCO Financial Systems Sent me a letter stating I owed a substantial amount of money from a credit card in 1988! Phoenix Arizona

Steve,

That IS the way it works. You are correct that it is illegal for a debt collector to file a lawsuit on a debt that is past the SOL. But while that illegality is a defense to a claim and a claim in and of itself, it is NOT a lock on the courthouse doors. The "they can't sue you" line is Bud Hibbs advice and, believe me, Bud Hibbs doesn't know as much as Bud Hibbs thinks he knows.

Now, I would NEVER place my license to practice law on the line to file a lawsuit where I know the debt is past the SOL. But my partner is a debt collector and I can tell you first hand that the default judgment rate in collections matters is close to 90%. So the vast majority of alleged debtors never even bother to defend themselves, even when they have a solid defense such as the SOL. Out of the remaining 10%, few will actually hire a lawyer or effectively defend themselves. And out of that few, even fewer will actually pursue the sanctions available under the FDCPA or any other applicable laws.

So some lawyers might be willing to play the odds, and there is nothing other than their own concern for their professional well-being preventing them from filing suit on a time-barred claim. And even if they do get called out, the probability of any kind of serious penalties is rather slim, probably too slim to outweigh the profitability of skirting the law.

And FYI, filing suit on a time-barred debt is a civil infraction. There is no criminal liability associated with it. And even the civil liability, including the effect it may have on an attorney's good standing, can be rather minimal if the attorney can convince the powers-that-be that he was acting negligently and without knowledge that the debt was time-barred.

But filing suit on a debt that was discharged in bankruptcy IS a criminal offense, and an attorney who knowingly files such a suit could actually face some jail time and will likely be suspended from practice, if not disbarred.

When a debt is actually past SOL, it is actually ILLEGAL to file a lawsuit on it.

That is the whole purpose of the SOL.

Anyone filing a lawsuit on an expired SOL debt opens themselves up for civil and punitive damages for both the FDCPA violations, various state laws, and most of all damages arising from the filing of a frivolous lawsuit.

And, most important, the "attorney" who would file such a frivolous/illegal lawsuit could easily be disbarred for the blatant ethics violation.

I have been down this road.

But your statement that the "cannot sue" is not true. Of course they can sue, anyone can sue. Hell, I can sue you. Will they win? Maybe. They could file suit and get a default judgment if Kim doesn't respond. If Kim responded in court, as well as filing a counter suit, she would win simply on the SOL issue.

NCO sent out thousands of these "Chase/Assignee of Providian" letters. Hell, I got one. A simple letter demanding they validate the debt ended the whole thing when the sent me a letter "closing this matter."

You are right, however, they they are bottom feeder, junk debt buyers.

Kim, do NOT talk to them on the phone. Do everything by mail. Stand up to them, they will go away.

The advice on the validation request is simply bad advice.

This debt being 16+ years old is obviously past statute of limitations for collections, therefore they can do nothing to you. They cannot sue. They cannot win. They don't get paid unless you agree to pay them.

Also uncollectable due to your bankruptcy.

FYI..NCO does not only do medical debt. They are junk debt buyers of the worst kind...every kind! They pay approx 1/10th of a penny on the dollar for this old worthless debt and then harass people into paying.

At this point, simply send a CEASE COMMUNICATIONS request to them as per the provisions of the FDCPA. Send this by certified mail, return reciept requested, and be sure to put the certified# on the letter itself and keep a copy for your records.

If they made any entries on your credit report, you have the right to sue, as a debt that is past statute of limitations cannot be legally collected upon, and therefore they do not have "permissible purpose" to even pull your credit.

Don't get mad, GET PAID!!

NCO is a company who buys noncollectable debts from medical providers for pennies on the dollar. NCO uses intimidation tactics to convince consumers to agree to pay a bill that is legally dead. Once you agree to pay the debt, it is now legally collectible.

1. Do not talk to a debt collector on the phone, the results are never in your favor.
2. Send a certified letter requiring that NCO validate the debt before agreeing to pay or sending them any money. Include in you letter that NCO is not to telephone your home, work or any third party and if NCO fails to comply it is considered harassment.
3. Keep meticulous records of your communications with NCO in the event a problem arises or if the company tries to reiterate the debt at a later date.

Sample letters can be found at Budd Hibbs website, click in the red banner 'first time dealing with a creditor?' There is another download by clicking on the green book... I prefer the sample letters and information available from creditinfocenter and there is some free information including sample letters.

Good luck dealing with this bad debt collector.