Middletown Township, New Jersey
2 comments

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.

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Anonymous
#628685

i received a letter also, they did not give me whom the credit account i owed 2,000. i called number and told them i did not owe any outstanding debts.

and to stop sending me mail. do not give them any info over the phone just your name and account number off their letter. i told them that if this showed up on my credit report, that im contacting all 3 agencies, that it is fraudulent, and hung UP on them. I contacted the BBB submitted and online complaint, and asked them to tell them to CEASE AND DESIST.

The BBB took care of it for me. Know your state laws. It takes 2 years from day of last payment for any creditor to sue you for the debt. it then can be sold to any credit collection agency, but do not settle your debt with any agency.

Either wait out another 5 years and pull your credit report, it must be voided off your report after 7 years of your last payment. it may show up on your report as different accounts being sold to different collection agencies, but dispute them as one account, and in time it will be voided off your credit report. If you cant settle your account with the creditor directly with a payment arrangement, they cannot continue to add interest and other charges to your account if you are no longer using the credit card etc... to stop the vicious cycle of re aging/or re establishing old debt.

follow this.. contact the BBB and file a complaint, if the company is found guilty of fraud they can shut them down

John N
#578359

Collection agencies are mining old debts they bought because they are hurting financially. There is always a chance they can still get some money from some of these old accounts.

In your case, I would send them a certified letter outlining why you do not owe the debt and also (after researching it)that it is time-limited. Also demand they prove to you you owe this debt---in writing.

In any event, I would not pay it under any circumstances.

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