Legal Question

I would print out a copy (FREE once a year!) of his credit report at www.annualcreditreport.com and make sure the account is showing up. Then you can dispute it online (look at all 3 credit bureaus to make sure they are all showing the same information). They have to remove anything negative after 7 years and so if the line of credit with Sears is listed, request all 3 bureaus to have that line deleted. It is really easy to do & they take care of the disputes very quickly! (once in awhile a debt collector will be contacting the wrong person regarding a debt, and that may be what is happening in your husband's case...talk to the collector & find out if your husband is really who they are looking for).

Best of luck to you.

My disclaimer: I'm not a lawyer, lol. BUT - I have heard the same thing that your husband said before. I would trust your husband on this one; if there was a legitimate issue then it would show up on his credit report.

Here's a link to an article by Suzie Orman that describes the law: http://www.suzeorman.com/igsbase/igstemplate.cfm?SRC=MD01...

The pertinent excerpt from the article is: This process take place under a federal law, called the Fair Credit Reporting Act (FCRA), that regulates the actions of all creditors and credit reporting agencies. The law is designed to protect consumers, creditors, and credit reporting agencies. The FCRA enforces the seven-year limit; specifically, it says that information in a consumer's file concerning accounts that have been charged off or placed for collection must be completely erased after seven years from the date of last activity; last activity generally means the date the creditor charged off the account.

Good Luck!

I am a lawyer, but not a civil lawyer so this advice also comes with the caveat/disclaimer to contact an attorney that specializes in the credit arena for the most accurate information. That said, your hubby is right and there is a statute of limitations on debt collections (5 or 7 years, I think). Companies will sell their uncollectible accounts receivables to companies for pennies on the dollar who in turn hunt you down and try to scare you into paying it. Note: the debt will become active/legally collectable again if you, in writing, agree to pay any amount to the collection agency so watch what you do when dealing with these people-they know the law and how to get the money.

Also, in regards to a lien on your home: there is no way Sears or any other unsecured lender can do that. In order for a lien to be put on your home for a bad debt, the home (or other collateral) must have been negotiated for in the original contract in order to get the credit. The most common examples are a mortgage, a builder’s lien, or any other secured transaction (for more info on secured transactions, see Article 9 or the Uniform Commercial Code) that specifically and unambiguously secures the debt with your home or other collateral.

Bottom line is do not worry- Sears cannot take your house or even secure a debt after-the-fact with a lien on your home unless it was bargained for in the original contract. If the Sears debt was just for a credit card (and not to put up siding/windows, etc.) it will be an unsecured transaction and they have no recourse.

I hope this helps!

Be careful of this one.........I had something similar happen to me about a year ago. A collection agency was calling my parents house about a debt I owed to Sears. They never called me, but called my parents house asking for me under my maiden name. I was concerned because I do have a Sears account, but it was opened with my married name and I do not carry a balance on it. I called Sears and they said that I did not owe them anything. I checked my credit report and it was fine as well. I got suspicious and then contacted the states attorney and sure enough, it was a SCAM! Be careful.

Start by calling the Sears credit card company. They can at least tell you if the account is closed or if they sold it. If it's been that long and this is the first you heard of it, it could be a scam. Then the Sears people could put you in touch with their fraud department and they'll help you decide what to do.