New York Credit Card Issues from 2000

Here’s the deal.  Tons of clients have been coming into the New York office recently complaining about getting sued for alleged credit card defaults from more than 7 years ago!  Thats right, try and remember what you purchased in October 2000.  You cant? No problem.  Just pay the collection agency some money (with about 8 years worth of interest) and its gone.  Never mind that you checked your credit report and its now showing.  Never mind that you dont remember ever being served with a summons in New York.  It’s getting ridiculous.  

A few things you should know.

1. Six Year Statute of Limitations-  If they don’t sue you within 6 years AND you actually did have a debt and you defaulted, they’re out of luck…so don’t pay until you speak to someone who knows about this practice.  

2. If the debt is valid, and they did everything right…they will take a TON less than what they claim is owed.  They bought a debt of $3000 from another collection agency for pennies on the dollar.  So you should easily be able to get a large reduction in the amount you have to pay back.  I could care less what they say on the phone to you.   The “consumer collection specialist” was working at a Kinkos about 2 months prior (not that there is anything wrong with that) and she/he is not a specialist at anything.  They have scripts.  If they say no to the deal, try and call again.  Keep persisting.  We usually are able to get a significant reduction in many cases (no guarantee whatsoever of future results) by speaking directly to the attorneys involved).

3.If you didn’t get served, you don’t have to pay.  They’ll likely try and freeze your bank accounts and garnish your wages even after all these years.  There are many ways to stop them from doing this in the New York City court system.

Look, we all know the economy is bad, and New York City is no exception.  The collection agencies will be working harder than ever to try and collect money and convince people that they actually owe a debt when the people don’t know if they do.  Make sure you protect yourself.  You work hard for your money and there is no reason to give it up without a fight.