Bill Collector Reaches Out For An Old Debt

[David A. Szwak]

Paper: Houston Chronicle 2006

Bill collector reaches out for an old debt
By RICHARD ALDERMAN

Q: I was recently contacted by a collection agency concerning a 10-year-old credit card debt. Isn’t there some time period after which they can no longer collect?



A: This has become very common question. It seems that more and more collection agencies are trying to collect very old debts. Under the law, there are time periods within which a lawsuit must be brought. If you delay beyond this period, the suit may be dismissed as time-barred. In most cases, a lawsuit must be brought within four years of when you defaulted. Obviously, it has been much longer than that. This means that if they did file a lawsuit, you could have it dismissed. It does not mean, however, that they may not contact you to ask that you pay. In my opinion, as long as the company does not harass, threaten, or abuse you, it may request that you pay a time-barred obligation. Under federal law, however, you may stop all contact by sending them a letter demanding they stop all future communication. That should end the matter.

Q: I received a book in the mail that I did not order. My friend told me that under the law I may keep it and treat it as a gift. Is this the law?

A: Both state and federal law provide that if you receive unordered merchandise, you may either reject it, or keep it and treat it as a gift. There are, however, a few exceptions that you should be aware of. First, if the goods were sent to you by mistake, and the seller advises you of this and offers to pay return shipping, you have no right to keep the goods. Second, you should be very careful to ensure that you did not ever authorize the shipping of these “unordered’ goods. For example, you may have replied to an advertisement, or taken advantage of an offer that includes authority to ship goods in the small print. In my opinion, the safest course of action is to notify the seller that you did not order the goods, and let them know they will be returned. Make it clear in your letter that you do not authorize any future deliveries and that any goods received will be treated as a gift. If it happens again, enjoy your gift.

Q: I signed a contract with a dating service. The sales pitch sounded great and I agreed to pay almost $5,000. As soon as I got home and starting thinking about things, I realized this was not as good a dear as they made it sound.
Do I have three days to change my mind?


A: Unfortunately, there is no three-day right of rescission for contracts with a dating service. As a general rule, once you sign any contract, you are bound. The law allows you time to change your mind only in very limited circumstances. For example, you have a right to rescind a time-share contract, a health spa contract, a contract signed at your home, and certain contracts that place a lien on your house. This does not mean, however, that you do not have any defenses to payment or any legal basis to get out of the contract. If the company mislead or deceived you to get you to sign the contract, or took unfair advantage of you, t may have violated the Texas Deceptive Trade Practices Act.

Q: How long do I have to file a claim for damages from an automobile accident?

A: This is what the law calls a tort and you have two years to sue.
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As we bloat with debt, enablers egg us on