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Yesterday, I got a letter from a financial firm here in Iowa, where I’ve lived for 14 years. It stated that I owe money that hasn’t been paid on a car that I co-signed in 1999 for a roommate when I lived in Florida. She didn’t have enough credit, but I found out that she died in 2000.
I think that her son kept the car (no will). He must have made some payments, or he traded the car. I’m not sure what he did. I’ve lived in Iowa for 14 years and have long lost contact with him.
The letter said that I have to pay for the car she bought in 1999. Can they charge me after 22 years? Please let me know if I am responsible. I am retired now. I live off my Social Security. I’m 69 years old and can hardly survive.
-Q.
Dear Q.,
I wouldn’t pay a penny of this debt. This is clearly a case of zombie debt debtwhich is debt that has already been paid or is so old that it’s no longer collectable.
But that doesn’t stop sketchy companies from trying. Agencies buy tons of ancient accounts for pennies on the dollar, or sometimes even less. If they scare just a small fraction of people into paying up, they can make a profit.
Of course, you should pay debts that you know you owe when you can afford to do so. But you really don’t know if this loan actually went delinquent. Even if it did, your roommate’s lender had plenty of time to sue you. It chose not to. It’s more important to take care of your basic needs than to pay a loan you co-signed on 22 years ago.
Each state has what’s called a statute of limitations for taking debtors to court. This window can range from three to six years, depending on the state. In Florida, it’s five years for written contracts, including car loans.
Once the statute of limitations has passed, a debt collector may still try to get you to pay up. But they can’t sue you for it. Once seven years have passed since the account went delinquent, it should no longer be listed on your …
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