I had to teach a collection agency their manners on Friday. I got a collection notice for a bill for a company that I never did business with, but then I saw what it was, it was a phone company bought by another, for service in 1997. I called them and identified myself. My first words were that I was amused. The man said why. I said that unfortunately for them that the statue of limitations for collection on this debt had expired in 2001 by Pennsylvania law.
He replied that there was no such thing. I told him that was nice, but since I was looking at the law and had the ability to read and write, that our conversation was moot. Also should their company try any further collection activity, or put anything detrimental on my credit report they were subject to fine for each occurance. I said I would monitor my credit report and if I saw anything I would start a class action suit against them.
What these companies do is buy charge offs and something like $5 each. The debts are technically not collectible, but if they can convince the person on the phone and have them send money, it reestablishes the debt and the clock restarts.
The collection agents know that but are told to deny that in hope they can convince the person on the phone that they have the power to do things to them if they do not pay, they have no power at all.
Debts as old as this one are lucrative, as for every dollar they collect is pure profit. They do not give it to the creditor, they put it in their pockets.
Each state is different, but most of them is 6 years for secured debt and 4 years for unsecured debt. And it applies to the state where the debt was incurred, not the state where the billing agency or collection agency is located. If let's say your state has a 3 year limitation, and the billing or collection agency is located in a state where the number is higher, it is where it happened. And should you move the debt collection process time limits apply to where it happened not where you are now.