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  1. #1
    Join Date
    Apr 2007
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    Il.(near StL,Mo.)
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    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)

  2. #2

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

    Quote Quoting Betty3
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    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.

  3. #3
    Join Date
    Oct 2008
    Location
    WA
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    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.

  4. #4
    Join Date
    Oct 2008
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    WA
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    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.

  5. #5

    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?

  6. #6
    Join Date
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    Il.(near StL,Mo.)
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    Default Re: Effect of Considering a Debt Collection Settlement on the Statute of Limitations

    However; even though the SOL has elapsed, they can/might still sue you. You would then use the SOL as elapsed as your defense when going to court.

  7. #7
    Join Date
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    Default Re: Effect of Considering a Debt Collection Settlement on the Statute of Limitations

    Quote Quoting Mercutio100
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    A couple other points. Under the federal laws I mentioned above, you would actually be due up to $1000 per each violation.
    Most federal circuits limit you to one claim for statutory damages per action. (Not per violation.) I'm not sure that all circuits have yet ruled on the issue.
    Quote Quoting JessicaLevin27
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    Seriously? If it's past SOL are they not allowed to call anymore?
    You can instruct them not to contact you. Take a look at the sample letter here.

  8. #8
    Join Date
    Oct 2008
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    Washington comma the Great State of.
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    Default Re: Effect of Considering a Debt Collection Settlement on the Statute of Limitations

    Quote Quoting JessicaLevin27
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    Seriously? If it's past SOL are they not allowed to call anymore?
    Well, they can call, but they can't force you to pay the debt as it's not collectable. But they can call once to find out.

    All you do is send them a letter delineating that you don't wish to be contacted about this debt again, referencing the FDCA and that for each additional call they place to you will be a $1,000 lawsuit you'll file in court.

    If they do this enough, you'll have the money to pay back the debt, though you won't have to as the SOL will have lapsed.

    Sending them a "don't call me" letter doesn't reset the SOL. It's merely you telling them that you're aware of your rights and aim to assert them. If they file this on your credit report after you've informed them the SOL has expired, you can sue them for another grand.

    Also, if you contact the credit bureau and they don't take it off, you can sue them for a grand.

    Read about it here: http://www.creditinfocenter.com/rebu...lidation.shtml

  9. #9

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

    Well, Performance Capital Management does not appear to be aware of this rule about not calling after SOL has expired, because they called me today, and when I answered and said SOL was expired, the man said that while it might not be legally collectible anymore, it's still a valid debt and they are allowed to continue calling to request payment. I'll check out the link you posted.

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