Page 1 of 2 1 2 LastLast
Results 1 to 10 of 15
  1. #1
    Join Date
    Jan 2007
    Posts
    14

    Default Charge off past the Statute of Limitations

    What can I do about a charge off (two actually) that is past the statute of limitations for collection from me? I need them removed from my report entirely and am willing to negotiate with them for it but would like to first see if there's any way it can be removed based on the fact that they cannot legally collect.

    A little background... everything I ask about here is about my husband's credit report. We're trying to buy a home (hopefully it will be repaired by next year) and I need to clean up his report. I know that charge offs must be taken care of before a mortgage lender will lend because a lien can be placed against the home and must be paid before the lender is repaid. BUT, what about this situation? The charge off creditors no longer have a legal right to sue for repayment since it is past the statute of limitations...

    Thank you in advance!

  2. #2
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,656

    Default Re: Charge off past the Statute of Limitations

    The time the negative entry can appear on your credit report may permissibly exceed the statute of limitations for a collections lawsuit. As many states have a shorter limitations period than seven years plus up to six months, the amount of time a typical credit entry lasts, this is common.

  3. #3
    Join Date
    Jul 2006
    Posts
    5,438

    Default Re: Charge off past the Statute of Limitations

    Q: What can I do about a charge off (two actually) that is past the statute of limitations for collection from me?

    A: Not a whole lot that I know of. (Stand by for others.)



    Q: I know that charge offs must be taken care of before a mortgage lender will lend because a lien can be placed against the home and must be paid before the lender is repaid. BUT, what about this situation? The charge off creditors no longer have a legal right to sue for repayment since it is past the statute of limitations....

    A: These debts cannot be liens if they are beyond the statute of limitations.

  4. #4
    Join Date
    Jan 2007
    Posts
    14

    Default Re: Charge off past the Statute of Limitations

    Quote Quoting aaron
    View Post
    The time the negative entry can appear on your credit report may permissibly exceed the statute of limitations for a collections lawsuit. As many states have a shorter limitations period than seven years plus up to six months, the amount of time a typical credit entry lasts, this is common.
    Ahhh... that's what I was thinking. DARN! lol. So, we'll have to negotiate to have the charge off removed and settle the account, eh? That's what I thought we'd have to do but wasn't sure if there was a way to make it blind, so to speak, to a mortgage company. Either way, it reduces his score in general so it has to come off. *going off to type up a settlement letter*

  5. #5
    Join Date
    Jan 2006
    Posts
    28,099

    Default Re: Charge off past the Statute of Limitations

    First, are you sure the debts are beyond the statute of limitations? The fact they charged it off does not truly mean anything to the debtor other than it has a very negative connotation.

    Next, chances are you are not going to get the report changed. No guarantees but your CR will probably reflect the bad debt until the 7 1/2 years (or what your state allows) are up.

    Now to the really bad news. When you make a payment, it restarts the SOL and reporting period to a new 7 1/2 years. You see, they get to report it until that time from your last activity. New payment, new activity, new reporting time and they will report it as a 0 balance but not a paid in full. It will report as a settlement amount.

    If you are close to it dropping off, you would be better served by just waiting.

  6. #6
    Join Date
    Jan 2007
    Posts
    14

    Default Re: Charge off past the Statute of Limitations

    Last activity reported on the account is March of 2001 - statute of limitations on this debt in New York State is 5 years.

    The SOL only renews if I acknowledge that this is my debt. A payment would pay made ONLY contingent on a contract (I have one made up already) stating that the agreed upon amount (again, in writing by certified mail) will settle the account entirely (notice, not MY debt), that it will be removed from the credit report immediately upon payment, and that no legal action can be taken against me for it at any point in the future.

    If they do not agree to those terms, I will not make a payment and they will neither receive any monies from me nor will they be able to take legal action. Either way, I am protected because at no time have I acknowledged that this is my debt.

    edited to add: We do not intend to make "payments" ON any debts. We will be negotiating each account but are able to make full payment if necessary... NO payment will be made, however, without removal from the credit report. They can't take legal action because it is past the SOL and we have not acknowledged owing the debt.

  7. #7
    Join Date
    Jul 2006
    Posts
    5,438

    Default Re: Charge off past the Statute of Limitations

    Standard answer on expired SOL (statute of limitation) and/or validation and/or dispute letters. There are thousands of posts similar to yours on this forum so I have prepared a standard answer.

    SOL (Statutes of limitation are DEFENSES to lawsuits; they do NOT provide a method to stop someone from suing you. This defense means when they sue you, you answer with the defense that it is barred by the SOL.)

    http://www.bcsalliance.com/y_debt_sol.html

    http://www.fair-debt-collection.com/...te-letter.html


    Validation letter samples you can get at :
    www.creditinfocenter.com
    and www.creditboards.com

    Make sure you ask for VALIDATION (and do not accept verification).


    Disputes: You can write a letter of dispute to the three credit reporting agencies.

    Go this website to find instructions and samples for how to dispute: http://www.creditinfocenter.com/creditreports/

    Sometimes errors are easy to remove and sometimes they stick like glue. It is inexpensive to try and not difficult.

    I am NOT a creditor-debtor lawyer; stand by for further help.

    I am NOT vouching for the accuracy of these websites!

    Debt settlement:

    http://forum.freeadvice.com/showthread.php?t=293829

  8. #8
    Join Date
    Jan 2007
    Posts
    14

    Default Re: Charge off past the Statute of Limitations

    THANK YOU for the links... they've been added in my favorites folders.

    I have already sent validation letters to all the debts listed (we are prepared to pay them in full if necessary) and used this sample letter as a base, removing irrelevant parts and adding a few things. http://www.creditinfocenter.com/form...eletter9.shtml
    Does it look all right? I saw nothing in it that would hurt me...

    Again, thanks for your help!

  9. #9
    Join Date
    Jan 2006
    Posts
    28,099

    Default Re: Charge off past the Statute of Limitations

    http://www.bankrate.com/brm/news/cc/20040116b2.asp#ar

    that website states SoL in New York is 6 years. I haven;t looked any further to verufy though.

    Well, I lied, this site states 6 years also.

    http://www.cardreport.com/laws/statu...mitations.html

    If those sites are correct, the SoL has not expired as of yet.

  10. #10
    Join Date
    Jan 2007
    Posts
    14

    Default Re: Charge off past the Statute of Limitations

    It depends on the kind of debt... for these charge offs, the sol is 5 years.

    1. Sponsored Links
       

Page 1 of 2 1 2 LastLast

Similar Threads

  1. Traffic Accidents: Filing Past Statute of Limitations
    By texgal in forum Accidents and Injuries
    Replies: 1
    Last Post: 06-23-2010, 01:46 PM
  2. Collection Lawsuits: Collections on a Past Statute of Limitations Apartment Debt
    By SandboxJ in forum Debts and Collections
    Replies: 2
    Last Post: 05-21-2009, 10:17 AM
  3. Collection Lawsuits: What To Do If An Installment Loan Is Past The Statute Of Limitations
    By JWHall2 in forum Debts and Collections
    Replies: 2
    Last Post: 06-11-2008, 12:18 PM
  4. Collection Lawsuits: Past Statute Of Limitations In Georgia - Now What?
    By twt in forum Medical Debt
    Replies: 2
    Last Post: 03-01-2008, 09:41 PM
  5. Collection Lawsuits: Is a Debt Past the Statute of Limitations Still Legally Collectable
    By xyzsf123 in forum Credit Card Debt
    Replies: 1
    Last Post: 10-14-2007, 04:13 PM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
 
Forum Sponsor
Find A Lawyer - Free, confidential referrals.
Legal Forms - Buy easy-to-use legal forms.


Untitled Document