Suze Orman

What happens is there are companies, collection agencies that go and buy these debts for pennies on the dollar.

And then what they do is they send you a letter like this, threatening they're either going to sue you or that it has to be paid.

This is how much now you owe in the hopes of that you are going to respond and say, okay, I'll send in $10 a month or whatever.

The time clock for a debt like this, Katie, usually is about four or five years after charge off.

So if they haven't paid it in that period of time, then nobody can sue you anymore.

It's past the statute of limitations and every state has their own statute, the number of years.

But usually it's four or five years.

After that time,

That debt cannot be collected anymore unless obviously it's a student loan or something like that.

But when it's a credit card and things like that, it's gone.

It's a loss to that company.

These collection agencies come in.

They write this mom a letter in the hopes that mom's going to say, yes, I'll send in money.

I'll respond.

I'll do whatever.

They're pressuring her now.

If she does, it starts the time clock all over again.

So you are not to respond to this email.

You are to not say anything or to this letter, nothing.

at all, period.