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Can CA sell debt after receiving a C&D letter?

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valley_man0505
Established Contributor

Re: Can CA sell debt after receiving a C&D letter?

O6, I have been monitorning these boards for a few years, and, if I remember right, there are SOME (not all) states where making a payment can restart the SOL clock--that has typically always been the myFICO mantra.  If that is NOT true, there has been a LOT of wrong information given here.  I have always used that theory as a "worst case scenario" just to be sure, even if that does not apply in Wisconsin--I've never been very good at understanding legalese, so my attempts to look deeper into specific Wisconsin laws just confused me more.  Based on what you said, my SOL expired even longer ago than I had assumed, which is not a bad thing.

 

Is it true that there are some states where SOL is reset by making payments?

 

 

Message 21 of 30
valley_man0505
Established Contributor

Re: Can CA sell debt after receiving a C&D letter?

I just noticed today that the most recent CA just did hard pull on my EX report!!  I know one inquiry isn't the end of the world, but it is the principle of the thing that irks me.  Something really needs to be done about allowing CAs to do hard pulls--especially for debt that they have not proof of.  This results in a) CAs finding a way to ding your report even for a debt that is past CRTP and/or b) getting your report dinged due to false information from the CA

Message 22 of 30
Anonymous
Not applicable

Re: Can CA sell debt after receiving a C&D letter?


@valley_man0505 wrote:

O6, I have been monitorning these boards for a few years, and, if I remember right, there are SOME (not all) states where making a payment can restart the SOL clock--that has typically always been the myFICO mantra.  If that is NOT true, there has been a LOT of wrong information given here.  I have always used that theory as a "worst case scenario" just to be sure, even if that does not apply in Wisconsin--I've never been very good at understanding legalese, so my attempts to look deeper into specific Wisconsin laws just confused me more.  Based on what you said, my SOL expired even longer ago than I had assumed, which is not a bad thing.

 

Is it true that there are some states where SOL is reset by making payments?

 

 


 

While there are a minority of states that toll the SOL based on a promise to pay or actual payment, those that do not require written affirmation of the debt and will toll simply based on a payment are extremely few -- probably fewer than 5.  Wisconsin is most certainly not one of them.

 

 

Message 23 of 30
valley_man0505
Established Contributor

Re: Can CA sell debt after receiving a C&D letter?


@Anonymous wrote:

@valley_man0505 wrote:

O6, I have been monitorning these boards for a few years, and, if I remember right, there are SOME (not all) states where making a payment can restart the SOL clock--that has typically always been the myFICO mantra.  If that is NOT true, there has been a LOT of wrong information given here.  I have always used that theory as a "worst case scenario" just to be sure, even if that does not apply in Wisconsin--I've never been very good at understanding legalese, so my attempts to look deeper into specific Wisconsin laws just confused me more.  Based on what you said, my SOL expired even longer ago than I had assumed, which is not a bad thing.

 

Is it true that there are some states where SOL is reset by making payments?

 

 


 

While there are a minority of states that toll the SOL based on a promise to pay or actual payment, those that do not require written affirmation of the debt and will toll simply based on a payment are extremely few -- probably fewer than 5.  Wisconsin is most certainly not one of them.

 

 



Ironically, I was just reading something on Bankrate.com this afternoon about what happens if you just stop paying your credit card bills.  Basically, it is all common sense to anyone who has spent much time on the myFICO forums.  However, the following statement on the last slide caught my attention because of the SOL topic we have been discussing:

 

Any payment will restart the statute of limitations. "Some collectors will try to trick you as the statute is approaching.  They will call and ask for just a small payment, like $10, to renew the statute," says Andrew Housser, a board member of the American Fair Credit Council, a group formerly known as The Association of Settlement Companies.

 

 

http://www.bankrate.com/finance/debt/debt-delinquency-timeline-what-to-expect-7.aspx 

 

Apparently there is a lot of confusion surrounding the SOL time-clock.

Message 24 of 30
llecs
Moderator Emeritus

Re: Can CA sell debt after receiving a C&D letter?

It's a YMMV based on state law. I'm in VA and a payment will not reset SOL, though a debtor going to prison will suspend the SOL clock. Go figure (does not apply thankfully).

 

This is uncommon and really applies to the scum of the scum, but there are a few rare examples in here of a poster learning about and posting that the CA claims a $1 payment was made to their account, thereby possibly resetting the SOL.

Message 25 of 30
Anonymous
Not applicable

Re: Can CA sell debt after receiving a C&D letter?


@valley_man0505 wrote:

@Anonymous wrote:

@valley_man0505 wrote:

O6, I have been monitorning these boards for a few years, and, if I remember right, there are SOME (not all) states where making a payment can restart the SOL clock--that has typically always been the myFICO mantra.  If that is NOT true, there has been a LOT of wrong information given here.  I have always used that theory as a "worst case scenario" just to be sure, even if that does not apply in Wisconsin--I've never been very good at understanding legalese, so my attempts to look deeper into specific Wisconsin laws just confused me more.  Based on what you said, my SOL expired even longer ago than I had assumed, which is not a bad thing.

 

Is it true that there are some states where SOL is reset by making payments?

 

 


 

While there are a minority of states that toll the SOL based on a promise to pay or actual payment, those that do not require written affirmation of the debt and will toll simply based on a payment are extremely few -- probably fewer than 5.  Wisconsin is most certainly not one of them.

 

 



Ironically, I was just reading something on Bankrate.com this afternoon about what happens if you just stop paying your credit card bills.  Basically, it is all common sense to anyone who has spent much time on the myFICO forums.  However, the following statement on the last slide caught my attention because of the SOL topic we have been discussing:

 

Any payment will restart the statute of limitations. "Some collectors will try to trick you as the statute is approaching.  They will call and ask for just a small payment, like $10, to renew the statute," says Andrew Housser, a board member of the American Fair Credit Council, a group formerly known as The Association of Settlement Companies.

 

 

http://www.bankrate.com/finance/debt/debt-delinquency-timeline-what-to-expect-7.aspx 

 

Apparently there is a lot of confusion surrounding the SOL time-clock.


 

Yes, there is a lot of confusion.  People hear what is in reality an old wives tale and pass it around until the whole world believes it.  

 

Wisconsin Statutes are surprisingly easy to read.  Give it a try. 

Message 26 of 30
RobertEG
Legendary Contributor

Re: Can CA sell debt after receiving a C&D letter?

While on the subject of old wives tales relating to debt, it was stated earlier in this post that a debt collector cannot report to a CRA after expiration of the credit reporting exclusion period (i.e., 7 years plus 180-days from DOFD).

There is no such date restriction limiting the reporting of accurate information to a CRA.  A debt collector can continue reporting forever, and a new debt collector can report after obtaining assignment of collection authority or purchasing the debt at any time.  The restriction of FCRA 605(a)(4) and 605(c) is not upon reporting to a CRA, it is upon the CRA for continuing to include any reporting of the collection in your credit report after that date.  Continued inclusion of collections in ones CR after the 605(a)(4) date thus is not disputable as inaccurate credit reporting.  It is addressed by complaint to the CRA for THEIR violation of FCRA 605(a)(4).

Message 27 of 30
valley_man0505
Established Contributor

Re: Can CA sell debt after receiving a C&D letter?


@RobertEG wrote:

While on the subject of old wives tales relating to debt, it was stated earlier in this post that a debt collector cannot report to a CRA after expiration of the credit reporting exclusion period (i.e., 7 years plus 180-days from DOFD).

There is no such date restriction limiting the reporting of accurate information to a CRA.  A debt collector can continue reporting forever, and a new debt collector can report after obtaining assignment of collection authority or purchasing the debt at any time.  The restriction of FCRA 605(a)(4) and 605(c) is not upon reporting to a CRA, it is upon the CRA for continuing to include any reporting of the collection in your credit report after that date.  Continued inclusion of collections in ones CR after the 605(a)(4) date thus is not disputable as inaccurate credit reporting.  It is addressed by complaint to the CRA for THEIR violation of FCRA 605(a)(4).


This actually provides a good segue back to the original topic of this thread--what can and can not happen after a C&D letter.  The CA may be able to report forever without violating the FCRA, but can they continue to report after receiving a C&D letter?  Reporting is, after all, a "collection activity".

Message 28 of 30
Anonymous
Not applicable

Re: Can CA sell debt after receiving a C&D letter?


@valley_man0505 wrote:

@RobertEG wrote:

While on the subject of old wives tales relating to debt, it was stated earlier in this post that a debt collector cannot report to a CRA after expiration of the credit reporting exclusion period (i.e., 7 years plus 180-days from DOFD).

There is no such date restriction limiting the reporting of accurate information to a CRA.  A debt collector can continue reporting forever, and a new debt collector can report after obtaining assignment of collection authority or purchasing the debt at any time.  The restriction of FCRA 605(a)(4) and 605(c) is not upon reporting to a CRA, it is upon the CRA for continuing to include any reporting of the collection in your credit report after that date.  Continued inclusion of collections in ones CR after the 605(a)(4) date thus is not disputable as inaccurate credit reporting.  It is addressed by complaint to the CRA for THEIR violation of FCRA 605(a)(4).


This actually provides a good segue back to the original topic of this thread--what can and can not happen after a C&D letter.  The CA may be able to report forever without violating the FCRA, but can they continue to report after receiving a C&D letter?  Reporting is, after all, a "collection activity".


 

They cannot report, but they can verify a CRA dispute.

Message 29 of 30
valley_man0505
Established Contributor

Re: Can CA sell debt after receiving a C&D letter?


@valley_man0505 wrote:

I just noticed today that the most recent CA just did hard pull on my EX report!!  I know one inquiry isn't the end of the world, but it is the principle of the thing that irks me.  Something really needs to be done about allowing CAs to do hard pulls--especially for debt that they have not proof of.  This results in a) CAs finding a way to ding your report even for a debt that is past CRTP and/or b) getting your report dinged due to false information from the CA


FYI...After I posted this, I sent a letter to the CA that was a combination DV/NonPP INQ/FOAD letter.  Last week, I received a letter back from them that they are filing a request with EX to delete the INQ.  They also said they have closed the account and returned it to the "original creditor".  They actually returned it to the junk debt collector that now owns it (the last 3 CAs that have contacted me about this debt have all said they were collecting on behalf of this JDC).  They also finally gave me the address of the JDC, so I can send them a FOAD letter as well now (I could never find any information on them in the past--even through internet searches).  Progress.

Message 30 of 30
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