can they report this?
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Posted by SensitiveStar
(24.136.205.19) on September 17, 2003 at 02:51:11:
I had an American Express credit card between 1988 and 1990, under my maiden name. During that time I defaulted on it. In 1990, I relocated to another state but did not leave a forwarding address. And then I forgot all about it, until 2001. In 2001, I applied for an American Express card under my married name and was accepted, after which I remembered the prior incident. I chose to remain quiet. Why not? It's been over 13 years. In June 2003, I received an "important notice" from AMEX telling me to contact them, which I did. They inquired if I were the prior individual and I denied it. One month later, I was on the phone with them again about something and they again inquired if I were the prior individual, which again I denied. They said they would correct their records. Two days ago I received a letter from a collection agency for this debt. On doing some research, I was advised I did NOT have to contact them, as the statute of limitations for collecting this debt was over. However, I chose to call the agency just the same. They agency made me a "pay 65%" now offer, and I said I would think things over and call them back on Friday. Here are my concerns -- 1. As stated above, the statute of limitations has run out and I am not legally obligated to pay this debt. However, if I refuse to pay the debt can they report it on any or all of my credit reports? 2. The credit agency stated, if I accept the "65% offer," the unpaid 35% will revert back to the creditor (American Express) and should I choose to apply for another card then AMEX can demand payment. Again, I don't see how this is possible if the debt is beyond the statute of limitations. 3. Since I already have an AMEX card at the present time, if I accept the "pay 65%" offer, can AMEX apply the balance to my current card? I am willing to pay any or all of the debt only if I have a written guarantee from both the collection agency and AMEX that neither will ever place a negative mark on my credit report, and if they already have they will remove it before I make any payments. I feel this is a win-win situation (they get their money and my credit remains intact). However, according to the FCRA, neither the collection agency nor AMEX can report it to the credit bureau(s) since it is beyond the statute of limitations. True ... but I'm sure AMEX has made the connection between my past card and the current one. If I refuse to make good on the debt, what's to stop them from tacking 100% of the prior debt to my current card as a new debt, and *then* if I don't pay it [1] cancel my account, and [2] report things to the credit bureaus. Should I contact all three credit agencies and ask if this debt was ever a charge-off or discharged? If so, can either AMEX or the collection agency reopen the file as a "new debt." In the final analysis, all I care about is protecting my credit reports, which I've worked too hard to build up over the years. I told the collection agency I would call them back on Friday regarding their "65% offer," so I need as much feedback as soon as possible on this. I will take all suggestions under consideration and make my final decision. Thank you all in advance for your guidance on this issue.
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