An old debt turned into a new tension
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by: David
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Word Count: 533
It is true that many people seek to cheat others through old debt scams. This practice has greatly increased over the past few years in the U.S. There are bogus collection agencies set up just for the purposes of trying their luck at looting people of their money.
They do this by preparing intimidating letters that demand the payment of a debt incurred back in time. They create some sort of confusion in the documents so as to manipulate the difference between legitimate and illegitimate debts.
Beware of such scams because these people are experts in fooling people into dishing out money that they don’t really owe. They are best at making you believe that you owe a debt from a long time ago which in reality you never even incurred. Hence it is always best to check out your credit profile for yourself when you receive such a phone call or letter demanding the payment of an old debt. It is also advised that you ask the collection agency for adequate proof showing that you actually owe the debt. Compare that with your credit files to uncover the truth.
The return of an old debt
In some cases however you may get a phone call from a collection agency or creditor demanding an old debt that you did actually owe. Most people are so frustrated with these bogus agencies that they think anyone calling them for the payment of an old debt is fraud. That may not always be the case however.
There are some people who believe they don’t really have to pay back their old debts because of the fact that a long time has passed and the statute of limitations applies to their debt. This is actually a very big misunderstanding because there is no such law regarding unsecured loans.
This means that an old debt that you owe and have totally forgotten about may come back to haunt you. The fact that the time period during which the creditor could sue you has passed does not erase the fact that you still owe the money. The creditor is entitled to the money that you owe him and can seek ways to make you pay that money. The statute of limitation law varies according to the state rules and you should check out the time period during which your creditor can sue you in your state.
Consumer loans, overpayment and underpayment cases, insurance policy payments, money from a breach of contract, sales fraud and tax liability are all cases that can get you into trouble especially if the time period during which the creditor can sue you has not expired.
But regardless of the time period you have to pay back the amount that you owe because the debt is still valid. Hence it is important to verify the old debt letter that you receive and take the appropriate action regarding the issue. If it is a hoax then you should file a complaint against the agency and if it is for real then you should figure out ways to resolve the situation.
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You can use the internet to find out more about the statute of limitations law in your state. More over you can find online consultancy to evaluate your old debt situation and give you different options of debt consolidation.
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