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  1. #1
    Join Date
    Mar 2009
    Posts
    5

    Unhappy Six Year Old Collection

    My question involves collection proceedings in the State of: California
    I now live in Arizona and wanted to join the Air Force but found out I have a collection from California - Apartment Complex - I recall my roommates bailed on me and one was on the 1 year lease. The collection is for 1 months rent $675 with interest total is now $1100+ since it has been a little over 6 years and the apartment complex could not give me any information reguarding my collection. Not knowing what to do I filed a dispute with the Credit Bureau and the collection has been refiled by a investment company. Now I have contact with someone to pay-off the dept but they say it will clear both names and i would only like to clear my own. Settlement is $975 or $100 month for 1 year after interest. I am gonna send out a letter to request a copy of my lease.

    How can they sell my collection to an investment company?

    What is my best option since I never knew about the collection for 6 years? The interest almost doubles the past due amount? Can I try to sue the other person on the lease?

  2. #2
    Join Date
    Jul 2008
    Posts
    853

    Default Re: Six Year Old Collection

    If you send them nothing, the collection will come off your credit in less than a year. Seven years is the limit. If you pay them, it will make no difference, as a paid collection will still stay on your credit for the 7 years. As far as credit scoring, FICO treats a paid collection the same as an unpaid one.

  3. #3
    Join Date
    Mar 2009
    Posts
    5

    Default Re: Six Year Old Collection

    Well when I disputed the charge because I couldnt contact anyone to make a payment too, the collection was been re-filed with a higher balance due to interest. So I dont think it will be erased within 1 year.

  4. #4
    Join Date
    Jul 2008
    Posts
    853

    Default Re: Six Year Old Collection

    It still must come off under Federal law. Read:

    § 605. Requirements relating to information contained in consumer reports [15 U.S.C. §1681c]
    (a) Information excluded from consumer reports. Except as authorized under subsection (b) of this section, no consumer reporting agency may make any consumer report containing any of the following items of information:
    (1) Cases under title 11 [United States Code] or under the Bankruptcy Act that, from the date of entry of the order for relief or the date of adjudication, as the case may be, antedate the report by more than 10 years.
    (2) Civil suits, civil judgments, and records of arrest that from date of entry, antedate the report by more than seven years or until the governing statute of limitations has expired, whichever is the longer period.
    (3) Paid tax liens which, from date of payment, antedate the report by more than seven years.
    (4) Accounts placed for collection or charged to profit and loss which antedate the report by more than seven years.
    (5) Any other adverse item of information, other than records of convictions of crimes which antedates the report by more than seven years.

    <snip>

    (c) Running of Reporting Period
    (1) In general. The 7-year period referred to in paragraphs (4) and (6) of subsection (a) shall begin, with respect to any delinquent account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity, charge to profit and loss, or similar action.

  5. #5
    Join Date
    Mar 2009
    Posts
    5

    Default Re: Six Year Old Collection

    So if the old collection was removed and refiled how do I prove when the original collection was dated? And how do i get it removed at the 7 year time period?

  6. #6
    Join Date
    Jul 2008
    Posts
    853

    Default Re: Six Year Old Collection

    That is the tricky part. If you have documentation of the debt, that could be used. Previous credit reports cannot be used in court due to the hearsay rule. Try sending a nice letter to the collector, or even to the original creditor.

    Failing in that, if you KNOW, then you can always get the information in discovery.

    Once the 7 years is up, you dispute the trade. If they fail to remove, you take your evidence and sue the in Federal court. If you want to be really tricky, you can apply for credit after they verify the incorrect tradeline, and then sue for the value of the loan you failed to get because of their illegal reporting. FCRA also allows for punitive damages, as well as statutory damages.

    Also, if the company trying to collect acquired the debt after it was delinquent, the FDCPA likely applies, and it also allows for statutory damages. Your state laws may also help.

    If the dispute does not get rid of it, the only way to get rid f the trade is to sue.

  7. #7
    Join Date
    Mar 2009
    Posts
    4

    Default Re: Six Year Old Collection

    if you make a payment the statue of limitations will start all over again, another 7 years.

    There is a statue of limitations that any debt owed can only be reported on your credit reports for seven years. They can indefinitely try to collect the money. The big thing is selling your debt to collections agencies. No matter how many times it is sold or how many companies have their hand on it; it can only be reported once on your credit reports. Here is another trick that the collection companies will due, they will change the date of "First Activity" on you credit reports so the debt appears legit on your reports. There is a law that prohibits that from happening but it does happen all the time. If found guilty there are very hefty fines the company would have to pay. It is very important to get a copy of all three every year. If it is past the seven years that you owed the original debt collector then you can send a Cease and Desist letter to all other collection agencies. By Law they must stop the collection process. Here is the thing that will work in your favor; the debt is no longer a concern of the original debt collector and will not try to collect because they sold your debt for money to a collection agency.

    here is a template. it can be used after the seven year statue of limitations.

    Cease and Desist Letter


    Your name and address Here.

    Client reference # Account #



    Attention: Name of Contact

    Company’s name and address here


    RE:

    Dear Mr or Mrs

    You are hereby notified under provisions of Public Laws 95-109 and 99361, also known as the Fair Credit Collection Practices Act, that your services are no longer desired or needed.

    1) You and all employees of your organization must CEASE AND DESIST all attempts to collect the above debt. Failure to comply with this law will result in my immediately filing a complaint with the Federal Trade Commission and this state’s Attorney General’s office. I will pursue all criminal and civil claims against you and your company.
    2) Let this letter also serve as a warning to you and your company that I may and will utilize telephone recording devices in order to document any telephone conversations that we may have in the future.
    3) Futhermore, if any negative information is placed or has been placed on my credit bureau reports by your agency after receipt of this notice, this will cause me to file suite against you and your company, both personally and corporately, to seek any and all legal remedies available to me by law. Since it is my policy neither to recognize nor deal with collection agencies, I intend to settle this account with the original creditor.


    Sincerely,

    You’re Name Here
    Remember to Sign your name.

  8. #8
    Join Date
    Jul 2008
    Posts
    853

    Default Re: Six Year Old Collection

    if you make a payment the statue of limitations will start all over again, another 7 years.
    WRONG. The statute of limitations varies from state to state, and has nothing to do with how long an item can be reported on your credit. You are confusing the statute of limitations (a state law, which for debts can range from 2 years to 15 years, and paying can reset, or more likely, toll with payment) with the running of the reporting period (a Federal Law, 7 years plus 180 days). Making a payment will not start the reporting period over again. If you pay the account current, the period is reset, but that is because the account is no longer a negative account, having been paid up to date.

    No matter how many times it is sold or how many companies have their hand on it; it can only be reported once on your credit reports.
    This is also wrong. Each entity can report the credit file, but the derogatory cannot be reported for longer than 7 years plus 180 days from the onset of the delinquency.

    If found guilty there are very hefty fines the company would have to pay.
    They are civil penalties, and unless the FTC wants to pursue it (which they largely do not, unless in extreme cases) you must sue to get relief in the form of damages.

    If it is past the seven years that you owed the original debt collector then you can send a Cease and Desist letter to all other collection agencies. By Law they must stop the collection process.
    Again, incorrect. You can send a cease and desist letter at any time, but once such a letter is received, the creditor is left with two choices: sue, or drop it. Even upon receipt of a C&D letter, they can still report to your credit if the 7 year reporting period has not run, and if the reporting period has run, they cannot report to you credit without breaking the law, even if you haven't sent such a letter. Your letter is legalistic gobbledygook, and shows little legal understanding of the issues involved. For example, putting it in writing that you intend to settle the matter withe the original creditor COULD be construed as a written promise to pay, and an admission that the debt is in fact yours AND valid, and due to this can reset the SOL and open you to a host of problems.

    The origin of C&D letters is 15USC 1692c(A)(1)(c), which reads:

    CEASING COMMUNICATION. If a consumer notifies a debt collector in writing that the consumer refuses to pay a debt or that the consumer wishes the debt collector to cease further communication with the consumer, the debt collector shall not communicate further with the consumer with respect to such debt, except—
    (1) to advise the consumer that the debt collector’s further efforts are being terminated;
    (2) to notify the consumer that the debt collector or creditor may invoke specified remedies which are ordinarily invoked by such debt collector or creditor; or
    (3) where applicable, to notify the consumer that the debt collector or creditor intends to invoke a specified remedy.
    If such notice from the consumer is made by mail, notification shall be complete upon receipt.


    Note that the above law does not prevent the CA from reporting to your credit after receiving a C&D, but merely prevents them from communicating with you.

  9. #9
    Join Date
    Apr 2009
    Location
    San Francisco
    Posts
    2

    Default Re: credit collect in califorina

    This collect company say I own ( Bank of America ) about 1200.00 dollars for
    Fifteen years . I have ask them to show me I own the money and I would
    pay the money to them . But the company can't show me . Just keeps asking for the to pay

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