PFD on SOL

[Anonymous]

Hoping one day I can make an entire post with acronyms but barring that great date;

IF I find out the item(s) on my report are still outside of SOL even though I made a few payments to CA (jury is still out however the fact it is a) CA b) a charge-offed debt c) no signed written contract so far looks good) then I'd like to make a PFD for a portion of the debt.

Does anyone have a template letter I can use that essentially says

'This is a time-barred debt. Any attempt to bring suit will result in an affirmative Time-Barred debt and counter-suit for attempting to bring suit on a time-barred debt. While I do not acknowledge the validity of this debt, in the interests of removing it from my Credit Report, I am offering a payment of (small portion of debt) in return for having this tradeline removed from any and all Credit Reporting Agencies.

This offer is final and expires in 30 days. I will require a letter a signed letter in writing stating that upon reciept of a Certified Check from myself for $X you will delete this item from report, that you will never again report it to any credit agencies, and that you will not sell this debt to any other Collection Agencies or 3rd parties'

I'd like to quote any laws I can in there (including even that I have the right to know what % they bought the debt for) and protect myself in any other way I can (even drafting the letter they should sign.

As I see it, IF it is past SOL then they bought a $1,200 debt for probably $50, I paid $200 already, and if they KNOW they can't collect and have a chance to make $250 or so or NOTHING they might jump at the chance. WORST they can do is be petty and keep reporting for 8 more months.

[jzralnc]

nyccc2, I thought you had a novel idea going until I saw this:

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&message.id=85193&query.id=26342#M85193

Message Edited by jzralnc on 03-28-2008 06:56 PM

[Anonymous]

jzralnc, what are you suggesting?

I am often confused by SOL.  I always thought it was a simple thing.  Date of First Default (DOFD).  I didn't think any action by a debtor would change this.

The good news... if we are confused by this, so is the CA (especially the bloke you are going to deal with).  So I guess you can simply assert what you think is correct and hope the CA buys into it.

Message Edited by JimmyMagno on 03-28-2008 08:33 PM

[jzralnc]

Jimmy,

DOFD is the Date OF First Delinquency. It's the first time you went thirty days late on your statement, and continued to not pay through the length of your state's SOL.

I'm not 100% sure, which is why I still think your idea has merit, but if you offer a PFD on your SOL debt in collection, it might be considered a payment on that debt and could restart a new SOL period.

Anyone got the details on this???

[Anonymous]

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@jzralnc wrote:
Jimmy,

DOFD is the Date OF First Delinquency. It's the first time you went thirty days late on your statement, and continued to not pay through the length of your state's SOL.

I'm not 100% sure, which is why I still think your idea has merit, but if you offer a PFD on your SOL debt in collection, it might be considered a payment on that debt and could restart a new SOL period.

Anyone got the details on this???

---

I'm still checking into all this, varies by state, situation and even court. Bottom line is CA's can *argue* a payment re-sets SOL but as far as I can tell it does not. If you had an account with an OC, missed payemtns and went into DOFD, and then made payments on the same account while open, I believe that would re-set SOL. But once an account is closed, charged-off, or sold to a CA, I don't believe SOL can be re-set ever as you are no longer making payments on an existing account, just a sold debt, whose DOFD is defined as just that.

I'll update everyone when I get a reply back from my CA's reponse to my SOL and PFD letter.

If they play 'hardball' I have an attorney who will find and cite the correct statutes and case-laws to make them back off.

[jzralnc]

This link is one of many out there that outline the state-by-state laws on SOL:

http://www.fair-debt-collection.com/SOL-by-State.html

An OC can sell a debt to a CA long before the account reaches SOL. I believe my two debts went to CA's after 12 months of nonpayment. I think the OC is the only one who can file a judgment. You would figure that since they sell the debt to a collector for pennies on the dollar, they write off the loss and take a tax break. Then it's up to the CA's to try and claim the full debt for profit.

As far as prosecution, the entire existence of the SOL is to prevent a creditor from suing you. Once the SOL has passed they cannot take you to court. Now, keep in mind (and I just learned this today) that an SOL will stay as a TL on your CR for seven to seven and a half years. For me, that's four more years once my accounts reach the North Carolina SOL.

Through my reading, I have a best guess that once the account reaches SOL, you could contact the OC and possibly work out a PFD settlement to them. An OC can trump any CA. And since they wrote off the loss, it's brand new profit for them. Potentially.