Maybe you lost your job, or had a medical emergency. Or something happened to cause you to stop paying on a credit card. Fast-forward seven years. You pick up the phone one day, and it’s some company you’ve never heard of, telling you they’re calling to collect on that credit card.
And maybe today, seven years later, you have a job. Maybe you’ve almost paid off those medical bills. Maybe even though you’re still struggling in a tough economy, the debt collector makes you feel guilty that you quit paying on that credit card.
So when they say, "Why not send us just one payment? Then we’ll work out a payment plan."
DON’T DO IT!
Here’s why. What the debt collectors don’t mention is, in New York, the statute of limitations on debt is six years. That means if you haven’t used or made a payment on that credit card in six years, and no one sued you to collect on it in six years, the creditor has lost the right to sue you for it. Legally, the debt has expired, and you no longer owe the money.
But. There’s no law that says debt collectors can’t still try to collect the money, as long as they don’t sue you for it. So debt collectors try to get people to make a payment, or enter into a payment agreement. That starts the statute of limitations running again, reviving the right to sue if you quit paying.
This is only one of many tactics used by debt buyers, who purchase debt for pennies on the dollar, then take aggressive measures to collect.
Below are the names of some debt buyers. If one of these companies tries to convince you to enter into a payment agreement with them, be sure to consult an attorney first:
Northstar Capital Acquisition, NY Financial Services, Pinpoint Technologies, Portfolio Recovery Associates, RAB Performance Receivables, RJM Acquisitions, Rushmore Recoveries, Worldwide Asset Purchasing, Encore, Asta Funding, and Asset Acceptance.