May 30, 2012
POedinDetroit,
You are correct but incorrect in you assumptions.
They can legally ATTEMPT to collect the debt regardless of its age.
They are calling from a foreign country, BUT they are representing a US based company. SO US laws applies.
Get familiar with the FDCPA (FAIR DEBT COLLECTION PRACTICES ACT)
After you get familiar with the FDCPA understand the SOL for your state.
After the SOL expires on the debt it becomes 'Zombie debt' or "junk debt" you are not legally required to pay.
Some steps for dealing with 'Zombie Debt'
1 - Do not acknowledge the debt. If you're not sure whether you actually owe the debt, don't say anything that could indicate that the debt is yours, and certainly do not agree to make any kind of payment. Doing this can give the company the legal right to collect the debt, which they might not have had if you didn't acknowledge the debt.
2 - Don't fall for any traps.
illegally "re-aging" debts (reporting the old debt to the credit bureaus as if it's new)
promising to wipe off a red checkmark on a credit report
bait-and-switch credit card offers (they tack on the balance of the zombie debt)
3 - Get it in writing. Ask for proof that you owe the debt, like the credit card agreement you originally signed, along with an account history. If they don't have that proof then they don't have the right to take action against you. Again, make sure you don't acknowledge the debt. Keep repeating: "I want to see evidence of this debt in writing. I do not acknowledge this debt."
4 - Write a letter explaining that you are not responsible for the debt, you do NOT acknowledge it, and you demand they stop harassing you or you will take legal action. If you've done your homework and you know that you are not responsible for the debt (such as if your statute of limitations expired and you don't meet the criteria in your state for extending it, or you declared bankruptcy), send them a letter through certified mail and get a return receipt. If you've filed for bankruptcy, send them your discharge order with your letter. If they insist on taking you to court, be prepared to tell the judge that you notified the collector in writing that the statute had expired.
5 - Watch your credit report carefully. They might try to report the debt or taint your credit history. As mentioned earlier, collectors could post an old debt as if it's new, or lie about the date of delinquency (in an attempt to start a new statutory period). Dispute any questionable entries with the credit bureau and the agency. Again, asking for proof of the debt as advised earlier can make their claims invalid.
I've successfully sued 2 'junk debt' collectors for FDCPA violations. Ironically both times were for the same 15 year old debt.