[lbo-talk] charge-offs

knowknot at mindspring.com knowknot at mindspring.com
Wed Jan 18 12:53:39 PST 2012


On 1/17/2012, you shag carpet bomb said in part:

> [suppose someone incurred] some small debt, $25 on a credit

> card . . . [and you] get a phone call 5 years later, oh hello! how ar

> you! we are xyz debt collection and you own 1000$. then they offe

> you a "deal" - ok, now you own $300. pay by x date or it will be $400.

> etc. and we'lll start charging interest. Had they just tracked you

> do[wn] in 1998, they maybe would have gotten 50...$100 out of you

> for interest and fees.

>

> it's a real racket . . . . [especially if t]he collection agency then sits

> on it for five years. where the hell else can you make that kind of

> payback. spend $5 in 2000. In 2005, chump pays you $300 so his

> credit doesn't suck hind tit. where else can you invest $5 and get

> $300 in 5 years (minus overhead you were gonna pay anyway)

In the state whose law governs the underlying contract/debt, will the applicable statute of limitations (the law barring suits on stale debts) not expired despite the lapse of five years?



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