Answer: The information you received from Bankrate.com is essentially correct. The credit card account is based on a written credit agreement and the statute of limitation for breach of a written contract is 4 years. This 4 year period begins to run from the date that you first went into default, but this period can be extend if you make a voluntary payment.
The collection agency may not be knowingly be attempting to collect on an uncollectible debt. You should start by sending the collection agency a stern warning letter disputing the debt and instructing them to stop contacting you. Click here for a sample dispute letter. If the collection continues to harass you about this debt, contact us for further assistance.
About the Author: Carl H. Starrett II has been a licensed attorney since 1993 and is a member in good standing with the California State Bar and the San Diego County Bar Association. Mr. Starrett practices in the areas of bankruptcy, business litigation, construction, corporate planning and debt collection.