An odd sequence of new offers on credit cards have suddenly started to arrive in the mailboxes of people who have had past problems with their credit history, such as delinquencies and defaults, says some news reports published recently.

On the other hand these offers for people to claim a “bad credit,” credit card if they have a poor credit rating do come with an unwelcome problem.

These cards are often offered by regional banks in conjunction with debt recovery agencies and these accounts will more often than not expect the customer to pay off past debts that are likely to have expired under the statute of limitations law.

Jessica Silver-Greenberg who writes for the Wall Street Journal has profiled the actions of CompuCredit a business that has used that technique in order to collect over $15 million in old and expired credit card debt thanks to offering balance transfer offers.

The Federal Trade Commission has already insisted that CompuCredit pay back over $100 million in money it has collected in a parallel program that involved a sponsored Visa card, after they failed to fully disclose the penalties for agreeing to an offer such as this.

A series of federal and state laws help to regulate the banks and their relationships with the consumer, which forces many lenders to take some bad debts and to write them off as not collectable after a certain length of time. This usually ranges from anything from three to ten years.

Although these types of debt can remain on a person’s credit file for up to ten years, the banks cannot collect the debt when the delinquent account remains inactive for the duration of the statute of limitations in the home state of the card holder.

Many of the major banks do not wait to cancel bad debts but instead they will sell them off to debt recovery companies who will purchase the debt for a minimal fee and if the debt collecting agency can induce the debtor to make a payment then that account “re-ages” and then that will see the statute of limitations period begin again.

A recent Newsweek investigation found that many debt collection agencies have bought and resold many portfolio’s that have been sold and resold so many times that the original paperwork does no longer exist for the alleged debt.

The attorney general of West Virginia has already barred these types of credit cards that are sponsored by debt collectors due to some companies “abusive” methods of working.