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By JOHN DARLING for the Mail Tribune You have a debt that's more than six years old, and you thought it was past the statute of limitations, something you could forget about. But suddenly you get a call from a collection agency wanting immediate payment — or else. They might threaten to put it on your credit record or even seek a judgment in court, payable through garnishment of wages or other means — and that also would go on your credit report. Some even threaten arrest. What's going on? Should you pay it? Should you report it? Or just ignore it? It's a new problem, says Jan Saffley, director of Consumer Credit Counseling in Medford. And it's being perpetrated by out-of-the-area collection agencies who buy very old debts for five to 15 cents on the dollar — and use strong-arm tactics, even threats in order to get payment. While local collection agencies reject such tactics, says Saffley, unscrupulous collectors might threaten arrest and jail for debts, something not practiced since the Dark Ages. Advertisement "It's against the law. I haven't ever heard of it with local agencies," says Saffley. "I mean, we let people out of jail who've killed people, so we're not going to jail debtors. But some older people do believe there's a debtor's prison." Under Oregon law, if the six-year statute of limitations has elapsed since the last payment or charge on the account, then you don't owe it, says Saffley. Before that time, a creditor may still go to court to seek a judgment on an unpaid debt, something you are then required under law to pay. "Buying debt," as it's called, is a big business, since credit card companies charge off millions of dollars in debt, which "debt buyers" purchase, then try to collect through means that can get into a legal gray area, says Brian Watkins, president of Southern Oregon Credit Service in Medford and president of the Oregon Collectors Association. No agency in the area buys debt, says April Smith, president of General Credit Services in Medford, "but agencies all over the country are doing it. The statute of limitation in Oregon is six years, but it's determined by where the debt originated — what the limitation is there." If a debt buyer tries to collect from you before the statute of limitations has expired, you are legally obligated to pay your debt, but it's often possible to offer them 10 cents on the dollar "to make it go away," says Watkins. If you don't pay it, they can put it on your credit report. But be sure it's your bill and that it's correct, by asking for an itemized statement, says Watkins. They are required by federal law to provide that. Many people are understandably concerned about the blemish on their record, because court records are public documents — and while they're not on the Internet, anyone, such as landlords, creditors and employers may go have a look. They may also check them out on OJIN (Oregon Judicial Information Network) if they subscribe to it. Once you satisfy a judgment, that is noted in the court record, but the fact of the judgment still remains for all to see, says Saffley. In short, you can straighten out your credit record by challenging its blemishes or letting seven years go by (it only goes back seven years), but the court record is forever. Unfair collection practices are "terrifying" to anyone, but the Fair Debt Collection Practices Act gives you a lot of protection, says Watkins. (See related story) Collection agencies are careful to observe these laws, says Watkins, because in addition to upholding their reputations and ethics, they don't want to get sued for huge amounts. Law allows class-action suits up to $500,000 or 1 percent of the collector's net worth, whichever is less. Short of a lawsuit, if you feel a collector has violated the law, you can report it to the state attorney general's office or the FTC. Badgering, hounding and bullying debtors just isn't the way to get collections done, says Watkins. "Bully anyone? Heck no. It's a waste of time. No one here is allowed to be rude or wants to be. We live in this community and these are our neighbors we see out at Little League. "Some of them (debtors) may think we're mean, but that's probably when we have to get a suit or garnish wages. It just seems mean. But, really it was mean of them not to pay the debt when they had the chance." John Darling is a freelance writer living in Ashland. 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