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Statue Of Limitations In Maryland based on DOFD?

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Anonymous
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Statue Of Limitations In Maryland based on DOFD?

Does Maryland Statue of Limitations start from the Date of First Delinquency for credit card debt?

Both of my credit reports show a Date of First Delinquency of 5/2012, but the collection agency filed suit 6/2015. That would make it a month over the legal statue of limitations, and 3 years 1 month from the date of accrual to my understanding. I made a payment on the account August 2012 that was below the minimum due and did not bring the account current which later resulted in it being charged off, therefore the date of first delinquency never changed from May. Can I use Statue of Limitations as my defense? 

I also just read that the 3 year statute of limitations begins again if creditors can document that a debtor has reaffirmed a debt by a good faith basis by a written agreement, orally, or by payment. Not sure if a payment below the minimum due is considered reaffirming the debt in good faith.  Thanks for your help.

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Anonymous
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Re: Statue Of Limitations In Maryland based on DOFD?


@Anonymous wrote:

Does Maryland Statue of Limitations start from the Date of First Delinquency for credit card debt?

Both of my credit reports show a Date of First Delinquency of 5/2012, but the collection agency filed suit 6/2015. That would make it a month over the legal statue of limitations, and 3 years 1 month from the date of accrual to my understanding. I made a payment on the account August 2012 that was below the minimum due and did not bring the account current which later resulted in it being charged off, therefore the date of first delinquency never changed from May. Can I use Statue of Limitations as my defense? 

I also just read that the 3 year statute of limitations begins again if creditors can document that a debtor has reaffirmed a debt by a good faith basis by a written agreement, orally, or by payment. Not sure if a payment below the minimum due is considered reaffirming the debt in good faith.  Thanks for your help.


3 years from your when you were originally 30 days late and as long as you didn't make any other payments.  

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Anonymous
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Re: Statue Of Limitations In Maryland based on DOFD?

Thanks for your reply.  So since the August payment didn't bring the account into good standing, it didn't reset the SOL?  I haven't been served yet but I want to make sure the May 2015 Statue Of Limitations would be a good answer to the summons.

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Anonymous
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Re: Statue Of Limitations In Maryland based on DOFD?

DOFD is for credit reporting purposes. What's considered legally the start of SOL is often within a month or two of DOFD, but can vary widely. It could be the original SOL had yet to run out at the time they filed suit...

 

For example, if last payment was made May-1st due May 15th, then start of SOL would likely be Jun-15th at earliest when the next payment would have been due. Date of default isn't necessarily when last payment was, but when the account became past-due. Also, there's the issue of purchase activity. Some SOL statutes take that into account while others don't. And the judge may have some discretion on interpretation of SOL, so if it's close, ruling could go either way.

 

When exactly was the last payment and last purchase made back in or around May-2012? Something to research before even considering the effect of the subsequent Aug-2012 payment, which despite being below minimum to bring the account current, likely reaffirmed the debt nevertheless; resetting start of SOL.

 

Regardless, you could respond to the suit with an affirmative defense of the debt being "time barred". It might work out with the plaintiff withdrawing or the judge ruling in your favor. However, the odds aren't favorable given the information you've provided.

 

Another option, if you're able, is contacting the CA and settle the debt for a lumpsum payment before it goes to court. Settling now will avoid a judgement, which could stay on your credit reports for ~7 years, and cause difficulty in getting credit cards, loans, mortgage, etc.

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Anonymous
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Re: Statue Of Limitations In Maryland based on DOFD?

Ronpa thanks for the info. Not sure of the last payment date around May. One report has this scheduled to drop off Feb. 2019 and the other says April 2019.
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Anonymous
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Re: Statue Of Limitations In Maryland based on DOFD?

Credit bureaus generally remove adverse entries early. So one can't go by that.

 

If you're able, look at your April-July 2012 statements to determine exact dates of last payment, last purchase, and first late (the following due date with no payment).

 

From the information you've provided, setting aside the issue of the 2012 payment, I get the sense they may have filed suit within the original SOL. If you legitimately believe the debt is out of SOL, you can respond to the suit with an affirmative defense of it being "time barred" and let the chips fall where they may. It could work out for you.

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Anonymous
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Re: Statue Of Limitations In Maryland based on DOFD?

Ok thanks. Will lawyers normally accept 30-50% settlement on a 6k debt before the trial date? I've built my score back up to 680 so I definitely wouldn't want a judgement against me.

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Anonymous
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Re: Statue Of Limitations In Maryland based on DOFD?


@Anonymous wrote:

Ok thanks. Will lawyers normally accept 30-50% settlement on a 6k debt before the trial date? I've built my score back up to 680 so I definitely wouldn't want a judgement against me.


While you could try rolling the dice with an affirmative defense of the debt being "time barred" and hope for the best, based on the info you've provided, settling now would be the safer, better route.

 

The amount being sought may be much more than $6K, if it doesn't include all interest since write off. Read carefully the money damages being sought ... does it simply say $6K? -or- $6K + interest since X date?  If it's the latter, the debt could be upwards of 12K depending on default rate, which could be high as near 30%, in the card agreement.

 

50%-75% settlement may be acceptable to them. 30% is a very long shot, though you could try starting there and see if they'll at least go 50%. Depends on much interest has been added and how motivated they are to collect something now verses going through a long, drawn out collections process. If they won't reasonably negotiate and lots of interest was added (ie. it's up to $10K-$12K now), contact an attorney for assistance, because often very high interest can be negotiated way down / disputed in court by an experienced attorney.

 

Be wary of providing too much information about your financial situation and goals (don't mention seeking a mortgage / refinance at all, because they'll hold out for a lot more!), job, banking, etc, since that may hurt negotiations, and for near certain will be utilized to collect later on, if a settlement can't be worked out.

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