"Settled in Full" account subject to SOL?

Anonymous · ‎01-05-2008

The reason I ask this, is that Noah_Bodie has posted this:

"Let's say to get a CA off your back, you settle and pay $1200 on an old $3000 debt. 2 years passes, it drops from your CRs, and you rejoice. Then you get served with a summons and complaint. You get sued. Why? Well, for that $1800 you still owe, plus another $4179.83 in penalties, fees, interest, etc. Can they do that? Well, after checking, the SOL in your state is 4 years, you paid $1200 2 years ago, so yep they can sue you. The $4179.83 may or may not be able to get tacked on, but if they can prove the $1800 debt they can collect on it. If they win, and get a judgment, that judgment will get reported, and you have a bad TL on your CRs all over again--perhaps for another 7 years after it's paid."

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&message.id=17466&query.id=107868#M17466

After paying off a collections account where I agreed to pay them a partial amount, I received a faxed letter from the CA saying that my collections account (referenced to a Bank account) has been "settled in full" and that the current balance is $0. No where is the original debt amount listed on the fax.

They list the current balance as $0 which I would take to mean that I don't owe them any more money and they can't touch me with a ten-foot pole. Now with this being true, can the CA still go after me if I am still under the California SOL? The reason I worry is that I am planning legal action against this CA for other reasons.

Message Edited by Starlunar on 01-05-2008 08:43 PM

Anonymous · ‎01-05-2008

Starlunar wrote:
The reason I ask this, is that Noah_Bodie has posted this:

"Let's say to get a CA off your back, you settle and pay $1200 on an old $3000 debt. 2 years passes, it drops from your CRs, and you rejoice. Then you get served with a summons and complaint. You get sued. Why? Well, for that $1800 you still owe, plus another $4179.83 in penalties, fees, interest, etc. Can they do that? Well, after checking, the SOL in your state is 4 years, you paid $1200 2 years ago, so yep they can sue you. The $4179.83 may or may not be able to get tacked on, but if they can prove the $1800 debt they can collect on it. If they win, and get a judgment, that judgment will get reported, and you have a bad TL on your CRs all over again--perhaps for another 7 years after it's paid."

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&message.id=17466&query.id=107868#M17466

After paying off a collections account where I agreed to pay them a partial amount, I received a faxed letter from the CA saying that my collections account (referenced to a Bank account) has been "settled in full" and that the current balance is $0. No where is the original debt amount listed on the fax.

They list the current balance as $0 which I would take to mean that I don't owe them any more money and they can't touch me with a ten-foot pole. Now with this being true, can the CA still go after me if I am still under the California SOL? The reason I worry is that I am planning legal action against this CA for other reasons.

OK. If theCA gives you a written agreement that the account has been settled in full, they have no recourse. If yu only take their word for it, then yes, you may be up a creek. As ong as the balance owing shows 0 as it should, you should be fine. Just never forget to keep copies of EVERYTHING. From your CRs to the letter you received.

Anonymous · ‎01-06-2008

The dreaded settled in full...
I have one and it's just like a paid chargeoff if you ask me.
Mine still says "account paid in full for less than the full balance".
Though I did pay it in full.
It was a car that was a total loss.

Good luck with your situation.