Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, September 19, 1994 TAG: 9409220007
SECTION: MONEY PAGE: A-6 EDITION: METRO
SOURCE: Mag Poff
DATELINE: LENGTH: Medium
I acquired this college student-approved credit card while I was a freshman in college. At that time, I was unaware of the fact that not paying off your credit card bills will haunt you later down the road.
For the past seven years, Citibank had not tried to contact me until two months ago when they began asking for a payment plan. After I stated my financial situation, the representative threatened to take me to court where I will have to pay at least $1,000 extra in court costs and extra fines. Also, it was stated that I had committed a felony by not paying a debt that is over $500. I was unaware that such laws exist in Virginia.
Could you tell me what choices I have in this matter besides going along with the payment plan of $50 a month and paying off the present balance of $778, which originally started off at $500. Also, please let me know if in fact I did commit a felony. And will it appear on my credit or personal record after seven years?
A: The collection agency is not telling you the truth.
Frank Perkinson, a collections specialist with the Roanoke law firm of Perkinson and Perkinson, said it's no crime (much less a felony) in this state - or any other state he's aware of - to owe a debt. The only exception would be commission of a fraud, such as forgery or use of a fictitious name, in connection with contracting the debt. So the question before you is entirely a civil matter.
In Virginia, Perkinson said, the statute of limitations on a written obligation runs out five years after the due date. Installments, he said, are all due at the end of each month. He believes that the statute of limitations on your debt ran out five years after you completely stopped using the account.
Perkinson said a collection agency cannot bring a civil suit. Only the party to whom you owe the debt and its attorney can sue you. An employee of the creditor, he said, would have to refer the matter to a lawyer representing Citibank.
Ronald Ernest, president of the Credit Marketing and Management Association of Roanoke, said that debts such as the one you describe are removed from the agency's files after seven years as required by law. Just to be sure, in fact, the Roanoke agency clears the record after six years and nine months.
Southern States stock
Q: Back in the 1950s, my father received several shares of Southern States Cooperative because we were farmers then.
My father passed away 25 years ago. My mother has the shares. We have tried to find out what this stock is worth, and I think it split several times. We have never been paid a dividend. I don't know how many shares we might have now and what this stock is worth today.
A: Vivian White, who works in the stock records department at Southern States Cooperative Inc. in Richmond, said the company issued a call in 1965 for redemption of all stock issued prior to 1955. None of the stock issued prior to that date has earned a dividend since 1965.
White said only stock records subsequent to 1965 are on the computer system, but the old records still exist and can be searched manually.
She asked that you write to Southern States, sending your mother's stock certificates along with a copy of your father's death certificate. Southern States will then research the records and redeem the stock.
The stock has not split, she said, and it is worth $1 a share.
You should write to Stock Records Department, Southern States Cooperative, P.O. Box 26234, Richmond 23260.
Buying NS stock
Q: Can I buy Norfolk Southern Corp. shares without going through a broker?
A: Sorry, virtually all stocks are sold only through stockbrokers.
You may, however, want to call a discount broker because you apparently have made your investment choice and are not seeking the research and advice offered by the full-service brokers. And, best of all, you can get away with buying only a single share if you wish.
Your one share will entitle you to join Norfolk Southern's dividend reinvestment plan. Then you can buy all subsequent shares directly from the company on favorable terms.
When you buy your share on the market, you should write to Norfolk Southern and request the brochure and application form for the dividend reinvestment plan. Address your letter to Norfolk Southern Corp., Stockholder Records Office, 13th Floor, 3 Commercial Place, Norfolk 23510.
by CNB