Old Debt Question

[bess]

First-time poster here. I read the old boards, followed you guys here, learned a lot -- and came home this evening to a problem in the mail. Debt collection notice. IF this debt is valid, there are a few problems:

1. It's 25 years old. (I'm supposed to remember?)
2. The university has had my address (may be beside the point)
3. The agency wants to add about $1,800 in "collection fees." (Oh, I don't think so.)

Now, I'm absolutely willing to write out a check and pay it. In fact, if I wrote it to the college, even if the debt were invalid, it would just be a donation. Which I'm actually fine with. But can I?

But I do NOT want to pay the "collection fee" and I do NOT want to re-start the clock and wind up with this on my credit report. My score is over 800, d*!#mmit.

The notice says I have to dispute it within 30 days. What do I do, considering that (a) I'm willing to pay and (b) don't want this on my credit report? Can I dispute the debt without re-starting the clock? Can I dispute it, pay it, and avoid the credit hit? I know this is all basic information, but I didn't think I'd need it.

[Malarky]

How much is the debt for?
Did you really owe them money?
How was the $1800 collection fee determined.

[TheOtherMe]

Check your credit report and see if it is on there. They may be trying to just get money from you.

[zibazinski]

I got GREAT advice on this subject from the old MSN money board. I was told to write a letter, return receipt requested, and challenge them to prove I owed the debt. Never heard from them again and nothing on my credit report. I think this is a scam.

[bess]

Debt is for $2,700. I'm not certain I do owe it, but it's been 25 years. Frankly, I recall the financing as being convoluted and difficult, involving revisiting varied sources of money and appeals. I haven't thought about it since graduation.

I'd be willing to just write a check, especially to the college, just to make it all go away, especially since it would be going to a good cause. But the "collection cost" (just re-read the notice) seems arbitrary. They do not list penalties or interest, and there are lines for them.

[bess]

The letter says it's a college debt -- can't be a student loan.

[bess]

I think I'll do that: Certified letter. Thanks -- I knew I'd get great advice here! I just about hyperventilated when I read that letter. I HATE debt. Even pay any credit card charge within 3 days of it hitting the website.

[zibazinski]

RETURN receipt, too. Make someone sign for it.

[lurkyloo]

Agreed--unless it's a student loan, there's no way a 25-year-old debt wouldn't be past the statute of limitations...and if it were legit, the school would have long ago charged it off (thereby negating any opportunity to pay it directly to the school). Challenge the debt, keep a record of your certified letter, and don't worry about it. And welcome to the new boards!

[stats45]

OP, have you paid on the debt at all in that time? If so, doesn't paying on the loan change the date for the SOL?

[DVM gone riding]

I think this sounds like a scam. You might also want to call the BBB and the school. The school might not even know someone is using their name to scam their alums.