Received a letter from Allied Interstate claiming I owe HSBC over $800.
Over 7 years ago (mid-2005) I bought a computer and peripherals at Best Buy. Total price was under $700. I pulled out my 0% credit card to pay, and the sales clerk told me that Best Buy had a store card, also 0%, for six months - - I had 4 months left on my existing 0% card, so I took the offer. My intention was to buy the computer, pay the entire balance within the 6 months and cancel the card. And 4 1/2 months later I paid the bill in full, and requested in writing that the card be cancelled.
4-5 months later I received a bill for about $100 in interest. I was predictably irate, and called to get the matter resolved. I had to talk to three different people before they accepted that this was not accurate and that I would not be paying them any more money.
But instead of fixing the account in their own system, they just charged it off and sold it to a collection agency that did not attempt to contact me for a few years. By that time it was $300. I explained the situation and they stopped contacting me.
That was over 7 years ago. I moved to NYC 3 years ago. I just received a letter from Allied Interstate claiming that I now owe over $800. I never owed the debt, and any claim if one had existed would now be time-barred. AI bought the "claim" from the prior collector, so maybe they don't know the claim is invalid, but they must know the date, which is clearly beyond 6 years ago, and the letter lacked the required language to the effect that the claim is time-barred.
(A) Why when they accept/learn that there is no claim do they charge it off and sell it instead of fixing their own books, and (B) why do they break the law re: time-barred debts?
Product or Service Mentioned: Allied Interstate Debt Collection.