Florida Debt That Was Settled Comes Back Again

**Davesbroke** · 08-14-2007, 10:19 AM

In November 2001, my wife settled a debt with Capital One and NCO Financial, paying $5125 on a debt of ~$7800. We were told the debt would be listed as settled. Fast forward a few months, and we get a tax form, stating we have to report on our 2002 taxes the charge off that capital one took on our behalf. I could live with that, but was unhappy that they had posted it to her credit report as a charge off rather than a settled, otherwise, I would have just not paid period. Fast forward a few years. We moved out of Florida in June 2006 to Oklahoma, and had never heard from Capital One, nor any collection agency about this debt. It shows on her credit report as a charge off, last action 11/01. She applied for a Lane Bryant credit card the other day, and was approved. Now low and behold, almost 6 years after the fact, we get a dunning notice from Alliance One stating they have been charged by Capital One to collect the "debt" which has somehow grown to $5600.44, and we have 30 days to respond. The temptation is to pitch it, as the Florida SOL has expired to my knowledge. Last charge we made on the account had been in 1998. I'd appreciate input in how to proceed. Thanks in advance.

**Mr. Knowitall** · 08-15-2007, 04:19 PM

Have you disputed the debt yet?

**Davesbroke** · 08-15-2007, 04:34 PM

Quoting Mr. Knowitall

Have you disputed the debt yet?

Not yet, I didn't want to take any action without knowing what I was doing. I didn't want to give them anything to use against me.....

**Betty3** · 08-15-2007, 08:48 PM

Just be sure to respond in the time limit allowed or they may get a default judgment against your wife.

**Davesbroke** · 08-16-2007, 04:37 AM

Quoting Betty3

Just be sure to respond in the time limit allowed or they may get a default judgment against your wife.

I will do so today. I have a few questions:

1. Am I correct in thinking that the SOL has expired, and that even if they tried I'd have that as a defense in a request for judgment.

2. Should I state that in my response, or is that just poking the beehive unnecessarily?

3. I had settled this account, then paid taxes on the charge off. Is it legal for them to come after me now, 6 years later for the charged off amount PLUS accumulated interest?

4. What's the point of settling if the company is going to do stuff like this anyway. The net result seems the same as if you just ignored them in the first place, except I'm out over 5 grand?

Don't get me wrong here. My wife made the debt, and we knew we owed it. Most of the 5k we paid were late fees and interest charges. The amount borrowed had been inflated tremendously by these fees, and we felt the settlement was more than fair. It's what happened since that I have a hard time stomaching.

Thanks for the responses.

**Davesbroke** · 10-13-2007, 07:07 PM

Never got an answer to the questions below. I responded with the dispute letter recommended by Mr Knowitall, and got another letter in the mail today continuing on as though I had never responded in the first place. Basically offering me Flexible Settlement terms and offering 39 days to start payment on a debt that was settled 6 years ago....

Can anyone offer advice and possibly answer some of the attached questions? PLEASE?????

Quoting Davesbroke

I will do so today. I have a few questions:

1. Am I correct in thinking that the SOL has expired, and that even if they tried I'd have that as a defense in a request for judgment.

2. Should I state that in my response, or is that just poking the beehive unnecessarily?

3. I had settled this account, then paid taxes on the charge off. Is it legal for them to come after me now, 6 years later for the charged off amount PLUS accumulated interest?

4. What's the point of settling if the company is going to do stuff like this anyway. The net result seems the same as if you just ignored them in the first place, except I'm out over 5 grand?

Don't get me wrong here. My wife made the debt, and we knew we owed it. Most of the 5k we paid were late fees and interest charges. The amount borrowed had been inflated tremendously by these fees, and we felt the settlement was more than fair. It's what happened since that I have a hard time stomaching.

Thanks for the responses.

**moburkes** · 10-17-2007, 08:02 AM

Have you tried contacting them by phone?

I noticed something in your first post that I wanted to correct. You said that Capital One charged off the account. That doesn't mean that its no longer collectable. Charge off is simply for accounting purposes. So, if CO listed it as charged off, that was correct. NCO should have listed it as settled.

**Davesbroke** · 10-17-2007, 08:58 AM

The account was settled, and the agreement was to list it as settled, but as stated, they subsequently listed the balance as a charge off. I have not contacted by phone as I believe that this is outside the SOL. At present it doesn't show on my wife's credit report at all. I'm kinda hoping it stays that way.

Quoting moburkes

Have you tried contacting them by phone?

I noticed something in your first post that I wanted to correct. You said that Capital One charged off the account. That doesn't mean that its no longer collectable. Charge off is simply for accounting purposes. So, if CO listed it as charged off, that was correct. NCO should have listed it as settled.