DOLA, DOFD, SOL.. AHHHH!

[Anonymous]

Hello, I am new to this forum, i have been working on improving my scores and have had luck i have disputed negative information on my reports. My problem is this i had a co and then it was sold to another company who sold it to yet another company who finaly contacted me and we settled the debit, I received a letter stating it was paid and the letter showed the oc and the current owner being represented by the current ca. the cra's stll report this account as a co and the current owner as a collection. i disputed it one as a duplicate and two as being paid as it realy is paid. The cra's results showed that the oc and current still report the same info as before i faxed all the paperwork proving the account paid got the same response, i sent the paperwork proving the account paid to the oc and current owner still reporting as collection and co. I know there has to be some goverment agency i can contact to file a suit because the oc and current owner are not compling with the FCRA and i have made them aware or this and it seems they do not care, but i do as it is killing my scores. (TU) 568 (EQ)493 (EX)616. Any help would be much apreciated. Thank You

[llecs]

Even if paid, both the OC and CA can continue to report for 7 yrs past DOFD. If paid, the CA should report it as a paid collection. The OC should be reporting that it was a CO or paid CO.

[Anonymous]

That is my problem both the oc and the ca still report as an open collection even after i have mailed both proof that it has been paid. Any sugestions on what to do now.

Thank You

[llecs]

Open or closed, the damage is the same. It doesn't matter. The harm comes from the fact that the CA is even reporting. Per the CO, again it doesn't matter. The damage is from the mention of "CO" and lates, if any.

If you had the CRAs change it to "closed" for either of them, then your scores will drop.

[MattH]

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@jzralnc wrote:
I heard on Clark Howard that once a debt goes beyond SOL it's illegal for a CA to demand payment. They can't call you, and they can't mail notices to your home. you could either tell them on the phone that the debt has passed the SOL and to stop calling, or write a nice, little letter.

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That varies from State to State.  In some States, it is illegal to attempt collection on a debt if they know it's beyond SOL.  In other States they can attempt collection, and even file a lawsuit.  In States where they can sue after SOL, they can win a default judgement even though it's beyond SOL if the debtor fails to show up and invoke the SOL as a defense.

In just about every State, if the debtor tells the CA "look, I know it's beyond SOL," an intelligent CA will give up because if it does get to court and debtor shows up to invoke the SOL as a defense they won't get a judgement.

[MattH]

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@MattH wrote:

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@jzralnc wrote:
I heard on Clark Howard that once a debt goes beyond SOL it's illegal for a CA to demand payment. They can't call you, and they can't mail notices to your home. you could either tell them on the phone that the debt has passed the SOL and to stop calling, or write a nice, little letter.

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That varies from State to State.  In some States, it is illegal to attempt collection on a debt if they know it's beyond SOL.  In other States they can attempt collection, and even file a lawsuit.  In States where they can sue after SOL, they can win a default judgement even though it's beyond SOL if the debtor fails to show up and invoke the SOL as a defense.

In just about every State, if the debtor tells the CA "look, I know it's beyond SOL," an intelligent CA will give up because if it does get to court and debtor shows up to invoke the SOL as a defense they won't get a judgement.

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As it happens, Liz Pulliam Weston just posted an article on this:

http://articles.moneycentral.msn.com/Banking/YourCreditRating/IsThereAStatuteOfLimitationsOnDebt.aspx

Some key points from her article:

• The devil's in the details.
• You can inadvertently restart the clock.
• A creditor may still sue you after the SOL has run out.
• The creditor may try to pick a better venue.
• Debts can still exist even if the creditor can't sue.

Message Edited by MattH on 03-05-2009 09:22 PM

Message Edited by MattH on 03-05-2009 09:22 PM

[Anonymous]

This credit scoring stuff is crazy. if reporting paid is going to drop my scores then i am just going to let it ride wide open. Another funny thing today when i checked myfico my eqifax score had jumped up 98 points from 493 to 591 but myfico didnt give a reason it just said my score had went up, i am new to myfico and have only been using it for a few months so is this normal for a score to jump and have no explnation as to why?

[llecs]

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Fearslayer wrote:
This credit scoring stuff is crazy. if reporting paid is going to drop my scores then i am just going to let it ride wide open. Another funny thing today when i checked myfico my eqifax score had jumped up 98 points from 493 to 591 but myfico didnt give a reason it just said my score had went up, i am new to myfico and have only been using it for a few months so is this normal for a score to jump and have no explnation as to why?

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Congrats. No that isn't normal. Check line by line to see what changed. Were you alerted to a score change or did you find out by pulling your reports?

[Anonymous]

A debt, once beyond the SOL, is still a legal debt and the CA or OC can continue to contact you (within limits of law) and attempt to collect the debt.

The SOL only protects you from suit and garnishment.  If they can get you to voluntarily pay, out of a sense of obligation or otherwise, it is legal for them to do so.

For CA, though, if you demand they cease and desist all contact, then the SOL essentially does make it a dead end for the CA, because they cannot sue you, garnish wages and now cannot contact you.

However, OC is not bound by the same rules as a CA.  They can continue to contact you and request payment.  However, for all intents and purposes, the OC usually won't do this after a certain time.  And then they usually sell it to a CA.

But, I want to clear up this point:  SOL does NOT mean the debt is extinguished, it only means that it is not enforceable through the courts....you cannot be sued.  Only settlement/payment or bankruptcy extinguishes a debt.