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  1. #1

    Default Re: Effect of Considering a Debt Collection Settlement on the Statute of Limitations

    I'm in California and all of my CC debt is past the 4-year SOL so it's uncollectible (except for the arbitration award MBNA got - eek!)

    Do you mean to say, if I get a call from one of my creditors where the debt is outside SOL, and I even DISCUSS a settlement, that puts the SOL back to day one?

  2. #2
    Join Date
    Jul 2008
    Posts
    853

    Default Re: Effect of Considering a Debt Collection Settlement on the Statute of Limitations

    That changes from state to state. Some states require that the negotiation be in writing, some do not. Some require a written promise to pay, it depends on your state's rules.

    Have you tried disputing and requesting validation?

  3. #3
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: Effect of Considering a Debt Collection Settlement on the Statute of Limitations

    In Pa. only an actual payment on the account is suppose to restart (extend) the SOL. However, that doesn't mean a coll. agcy. may not try to contend/argue that you in some other way restarted the SOL. (though that doesn't mean they will win in court)

  4. #4

    Default Re: Effect of Considering a Debt Collection Settlement on the Statute of Limitations

    Quote Quoting Betty3
    View Post
    In Pa. only an actual payment on the account is suppose to restart (extend) the SOL. However, that doesn't mean a coll. agcy. may not try to contend/argue that you in some other way restarted the SOL. (though that doesn't mean they will win in court)
    Oddly, I have not had aggressive collection efforts against me. None of my creditors took me to court, and only MBNA apparently had an arbitration clause.

    I should say, one creditor hired a sleazy law firm (one of those boiler room law firms that send out copies of copies of copies of boilerplate legal papers with bad spelling and grammar). They filed suit against me in Superior Court in the county where I live. When I got the notice in the mail, I went to the courthouse and got copies of all of the documents they had filed. They had claimed that they served someone named "Brian" at my residence on a certain date. I called the lawyer listed, and asked exactly who this "Brian" was and he gave me a description - caucasian male, late 30's, dark hair. But he wouldn't give me a last name, claiming that his computer was down.

    Well, it was really funny because I absolutely knew they hadn't tried to serve me at all! It was like the perfect storm of circumstances:

    1) I live alone

    2) my doorbell is connected to my phone

    3) I was home sick with the flu on that day - all day

    4) I always answered my phone because my mother was in the hospital and I didn't want to miss a call if she took a turn for the worse

    5) nobody has a set of my keys. NOBODY.

    6) There was nobody staying with me.

    So I filed an objection to their lawsuit on the grounds that they had not served me legally. I also filed a request to submit "in forma pauperis" - which was granted. So it cost me absolutely nothing to file my objection. Two weeks later I got a letter in the mail from the court saying that the law firm had requested to withdraw the lawsuit, without prejudice. I never heard from them again, and the 4 year SOL expired.

    Sounds like they don't want to try too hard to collect in court, if a defendant is going to make them work for it. I read in another thread that they have lawyers who filed multiple lawsuits in the same court on the same day, show up for 10 cases, 9 defendants don't appear and they get summary judgments and it's on to the next jurisdiction. So if they can bat .900 without having to stand before the judge and make arguments, maybe they're willing to let the occasional argumentative defendant like me slip between the cracks.

    I'm not naive enough to think people reading this should generalize from my experience. But I have to say I sure am glad I filed that objection! Because now the only thing I have to worry about is MBNA which sent me a letter this week (somehow my debt went from $31K to $34K to $38K two years ago to $61K this week? something's not right with that. I thought the cap on interest here in California was 10% but perhaps that only applies to judgment awards, not arbitration awards. Heck, maybe they've been charging me 23% annual interest all this time - that's kind of worrisome).

    And if I ever get rich I can pay them all back just on principle. But it's nice not having to look over my shoulder or have to worry about them all getting judgments and liens and garnishing wages and attaching bank accounts.

    Oh, and yes, divemedic, on the $61K offer I did wriite in a letter disputing the amount and requesting verification. I found this forum before I mailed it, so I hung on to the letter and will send it "return receipt requested" tomorrow.

  5. #5
    Join Date
    Oct 2008
    Location
    WA
    Posts
    79

    Default Re: Effect of Considering a Debt Collection Settlement on the Statute of Limitations

    This is a common tactic used by collection agencies. They attempt to overcome the SOL by getting people to acknowledge a past debt by saying that they'll forgive most of the debt if you merely pay a portion of it. When confronted with such an "offer" you should simply tell them to stop calling you and hang up. If they continue to call, they would be violating the Federal Fair Debt Collections Act. Further, if they end up reporting the past debt to a credit reporting agency, and the debt truly is beyond the SOL, they would also be in violation of the Federal Fair Credit Reporting Act. Beyond this, your state may have additional laws protecting consumers against practices like this. You should consult with a debt collection attorney and stop having any communications with the collection agency.

  6. #6
    Join Date
    Oct 2008
    Location
    WA
    Posts
    79

    Default Re: Effect of Considering a Debt Collection Settlement on the Statute of Limitations

    A couple other points. Under the federal laws I mentioned above, you would actually be due up to $1000 per each violation. You could turn around and sue them, get a judgment and have another collection agency annoy them for payment. A little piece of potential poetic justice.

  7. #7

    Default Re: Effect of Considering a Debt Collection Settlement on the Statute of Limitations

    Seriously? If it's past SOL are they not allowed to call anymore?

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