What should I do? Having problems with an old debt and need advice.?

I had a Discover card back in 1997 in New Jersey, it eventually was charged off in Feb of 2001. The account was transferred or bought by Camelba Investments, LLC (whom I can find no information on). My husband is active duty Army and we move alot...a couple of years ago we were in Alabama I received some letters from a law firm asking for settlements and threatening to sue. I always ignored them and nothing happened. We live in Texas now and I just got a letter from another law firm stating that if I don't respond in 10 days they will recommend to the client that they file suit and to seek court fees, attorney fees and interest in addition to the $3268. that I owe. He ends by saying that I will not receive anymore demands from the office.

My questions are this: This collection agency is not on my credit report, Discover is. I checked two of my credit reports online today (have to get the third my mail) one says that my last date reported was July 03, and the chart they have says that i paid as agreed till then, however I stopped paying it earlier then that...my best guess is beginning of 2002. Are they trying to pull a fast one to keep this account current? The other report says that it was charged off from Feb 2001 to July 2002 and that July 02 was the last date reported.

My husband is in the Army we have one income and I can't afford to add this to my list of current debts. But I also don't want to be sued. What should I do? Do you think they will sue me? Or they would have done that in AL? Should I contact Discover card to see when my last payment was?

as far as i know, in the state of texas you cant be sued for credit card debt. find out when you made the last payment, because the 7 year statute of limitations starts then (even if you pay after charge off) and if you can deal with calls and letters after 7 years nobody can sue you.

Get advice from an attorney. You need it. You can get free advice from the legal office on post.

Credit items remain on your record for 7 years. That chargeoff will be there at least until 2008. State law on collection of old debts vary from state to state. Some are as short as 4 years, others run as long as 10. Normally your state of residence governs this but since you are a military family the rules may get sticky. Your husband's domicile does not change when he PCSs but yours may not be protected the way that his is.

Once the time limit expires for collection of an old debt, there's nothing that the lender can do to collect the debt. You are wise in not contacting them at least until you have sought legal advice. Any contact could move the date of last activity to the present date and start the clock running again.

Get legal advice for your specific situation. You need it!

Wait until you get your third credit report. You'll be amazed at what can be on one that doesn't show up on the other two. Also, since it's over 7 years old, you can request (in writing) that the debt be removed from your credit report (you'll need to make the request with each company that it shows on your report). DO NOT make any payments on the account as it should drop off after seven years but if you make a payment, the clock starts over. I would simply reply to the collection agency that you have no idea what they're talking about and they then bear the responsibility of proving the debt is in fact yours.

Also, since you're already in the process of cleaning up your credit, I would advise you to pull your credit report yearly. I do it for a birthday present for myself. I still can't get over how much incorrect information shows up on my reports!

This is tricky because the people you had the debt with sold your debt to this collection company and right before the 7 yr period that collection company is going to sell your debt again. My advice is not to pay anything that original debt is over every time you pay the time starts over. They try to trick you by saying if you pay like 50% your debt is paid, but then they sell that debt (personal information) to another company. Let caller id and your paper shredder take care of this harassment.

You may need to go the JAG and ask about the collection laws but I know you can answer their letter (threat) with a cease and desist letter. Tell this company you prefer to work with original creditor and wish they no contact in this regard. make a copy for yourself and send the letter with a return receipt so that you will have proof they received it. Third party companies are like sharks. You can contact the credit bureau and ask them when that falls off your report. They will tell you. Good luck