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Awoke the sleeping bear - what to do?

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Anonymous
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Awoke the sleeping bear - what to do?

Getting my credit in order and was successful in jumping about 55 points the other day by getting a recent paid medical off my reports. 

 

I received a phone call from NCO this morning letting me know that I had a medical bill that is still due from more than six years ago. Looks like I've become attractive since jumping above the magic 700's! Grrrr. Either I woke the sleeping bear or it's a heck of a coincidence.

 

When I look at my old (pulled earlier last month) CR's, I only show this baddie from Oct 2004 on my TU. Premium Asset Recovery owned it at this time last month. I received the phone call from NCO this morning letting me know about this unpaid debt. I didn't admit anything other than I thought it had been paid by the insurance company that I was hired to do the job for when it occurred several years ago. I don't know if that was a good thing or bad thing to do. 

 

Anyways, anyone have any idea what might/could happen next with these guys?

 

I'm not panicking or freaking out, just wondering if they will escalate it. I know several letters have come in the mail for this thing over the years from various CA's but I haven't received any type of notice, settlement offer or any phone call within at least a year or two from anyone over this.

 

It's for $4200 and no, I can not pay in full at this time.

 

If they start to get aggressive and threaten a judgement, what kind of time frame am I looking at in order to get the money together before actually having to appear? I am not familiar with this part of the process and i"m hoping that it doesn't come to this but want to know what steps the CA can take if they want to. After all my hard work I've done so far, I'd hate to have another ding (and a super horrible one) because they escalate this issue. 

 

If threatened and they agreed to a repayment plan, what would hit my credit report?

 

Thanks

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1 REPLY 1
LIGHTNIN
Senior Contributor

Re: Awoke the sleeping bear - what to do?

Before doing anything,find out your states SOL,that is the time period that you are legally responsible for the debt.

Also the time period that they can sue and win.

 

You state this is a 6yr old debt,so more then likely it's passed SOL.There are about 10 states,the SOL is more then 6yrs.

While you are checking your states laws about SOL, look for what can reset a SOL,some states have them some dont.

If you need help with the your states laws,post what state your in and maybe someone here has knowledge about your states laws.    

 

Also you ask about your CR......Your debt is already 6yrs old so it can only report for about 1 year and a half more.

I understand you dont want it to be reported and dont have the money to PIF.

So if you decide to settle the debt, be sure your agreement says something like "considered PIF".Reword a PFD letter to agree Paying for Non-Reporting.

I believe there is a sample of that letter floating around here somewhere.

 

From my experiences, debts I had that were passed SOL, the CA's offered to settle and take off 50-70% of the debt,that would be around the amount that I originally owed.All but one of my debt had fees and interest that mounted up to 3 and 4 times the original amount that I owed.

 

IMO, I believe its better to only have written contact with CA's, that way you know who said what to whom and when.

Good Luck to YouSmiley Wink I hope you can breathe a little easier now.

 

FICO's May 2015 EQ764 ~~Live below your means and always keep an emergency fund -Love Everybody ~ Big Kenny ~ Big and Rich ~~~~~Credit Scoring 101 - Common Abbreviations - Freq Req Threads - Free Credit Reports - What Steps Do I Take?DV? PFD?
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