BOA and Calvary

[Anonymous]

This will be the first of many questions I ask this group. First, thanks for reading. I have spent the last month reading here and have learned a ton. So, my questions is this: I owe BOA $850. However, Calvary which was collecting for BOA said I owed a different amount. I disputed the amount that Calvary said I owed. This debt is 5Y 10M old. So, it will fall off soon. However, I wanted to pay, but I only wanted to pay the correct amount. Calvary has since deleted their entry from all 3 CB's. I don't want to stiff BOA, as one day I will need them. Also, somehow BOA has deleted from all 3 CB's as well. So, what am I to do? I want to call BOA and pay directly but don't want this to show up on my report. How should I handle this? 

[RobertEG]

You first need to determine whether BOA still owns the debt.  You cannot pay them if they no longer own the debt.

An indication would be whether, when they were reporting, they ever updated the debt balance to $0, which would indicate they had sold the debt.

Contact them and inquiry as to whether they still own the debt.  If so, then ask if there is currently an assgined debt collector.

If they own the debt and there is no assgined debt collector, offer to pay in exchange for their agreement not to reinsert their reporting with the CRAs.

[Meanmchine]

Keep in mind a very important point. The minute you pay a single dollar to BoA or the new owner as repayment your SOL resets and it could be another 7 years til it drops off. I would suggest researching your states SOL laws

[RobertEG]

There is NO reset of credit report exclusion based on payment of the debt.

Credit report exclusion is totally separate from any issues of expiration of statute of limitations, which can be "reset" based on a payment on the debt.

States can only enact credit report exclusion dates that are more favorable (i.e., of a shorter duration) than those set forth in the FCRA on a nationwide basis.

NYS, for example, has enacted earlier exclusion periods for paid collections, charge-offs, and judgments of five years.

No state can enact any credit report exclusion periods that extend beyond the maximum periods set under the FCRA.

[Meanmchine]

wont let me post the hyperlink  but its from credit.about.com

Question: What Can Restart the Debt Statute of Limitations?

Answer: Certain actions can restart the debt statute of limitations on a dormant account. This includes:

• acknowledging that you owe the debt
• making a payment
• entering a payment plan
• making an agreement to pay
• making a charge on the account
• accepting a settlement offer

If the clock on the statute of limitations restarts, it starts back at zero. This gives the creditor or collector more time to use the court to force you to pay the debt.

[RobertEG]

Reset of SOL applies only to the period in which civil action can be brought seeking a judgment.

It has no effect on the exclusion of adverse items from a consumer's credit report.

There is no reset of the 7 year peirod for exclusion of derogs based on any payments on the debt.

See FCRA 605(a),, which sets the maximum periods for all types of adverse reporting.

[Meanmchine]

This is from a Texas Lawyer

http://www.avvo.com/legal-answers/is--last-activity--on-a-credit-card-acct-considere-133743.html

The exclusion from a CRA file is not based on date of last payment but rather on the states defination of what is considered date of last activity. Most

states do indeed look to date of last payment but other courts are looking to when the contract becomes materially breached

[Anonymous]

That lawyer says:

"The short answer is "it depends". Texas courts are divided on the question of when a credit card account is considered breach for the purposes of establishing a date to begin counting the four-year statute of limitations on a lawsuit for breach of contract."

I think he's talking about the SOL, again. Not the 7 year reporting clock.

There's a lot of misinformation out there, and being in a paranoid state is not recommended for dealing with finances.  That's why I appreciate Robert, a long time experienced member of this board in debunking the myths. Even though in another thread, I was doing the same thing - showing him links from different places and he's liek NO! NO! NO!  

Thank you!

[Meanmchine]

From Equfax

For delinquent accounts, however, the date of last activity is essential because it indicates how long the negative account can remain on your credit report. Delinquency indicates a late payment made a full billing cycle—30 days—past the due date. Generally, a delinquent account remains on your credit report for seven years and 180 days from the date of first delinquency (10 years if the debt is discharged in bankruptcy). After that time period, the information will fall off your credit report—except in the state of New York, where it will remain only five years from the same date.

I was wrong

[Anonymous]

I am thinking I should do what RobertEG suggests.