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Lterhecbaorr
Posts: 4
Registered: ‎05-10-2013
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Collection on OLD debt: Request validation or notify of expired SOL/cease and desist?

Hello, 

 

My now-husband was unemployed for 3+ years several years ago. As a result he was unable to make payment on a credit card account. The last date of payment was 9+, possibly 10+, years ago and the statue of limitations has long ago expired in the state we lived in at the time (6 years), the state we live in now (6 years), as well as the state of law the original creditor specified (6 years). 

 

He received a letter in the mail today from a Northland Group on behalf of Cavalry SPV I, LLC. From a bit of research it looks like Northland is a collection agency hired by Cavalry who must have purchased the debt from the original creditor. The amount they claim is owed is clearly inflated many times over at this point and lands firmly in the realm of the absurd. 

 

My question is if we should respond with a request for validation and then respond with a statute of limitations/cease and desist letter or simply send the latter from the start. 

 

Thanks in advance for any help. 

Senior Contributor
DaBears
Posts: 3,930
Registered: ‎10-26-2012
0

Re: Collection on OLD debt: Request validation or notify of expired SOL/cease and desist?

[ Edited ]

Lterhecbaorr wrote:

Hello, 

 

My now-husband was unemployed for 3+ years several years ago. As a result he was unable to make payment on a credit card account. The last date of payment was 9+, possibly 10+, years ago and the statue of limitations has long ago expired in the state we lived in at the time (6 years), the state we live in now (6 years), as well as the state of law the original creditor specified (6 years). 

 

He received a letter in the mail today from a Northland Group on behalf of Cavalry SPV I, LLC. From a bit of research it looks like Northland is a collection agency hired by Cavalry who must have purchased the debt from the original creditor. The amount they claim is owed is clearly inflated many times over at this point and lands firmly in the realm of the absurd. 

 

My question is if we should respond with a request for validation and then respond with a statute of limitations/cease and desist letter or simply send the latter from the start. 

 

Thanks in advance for any help. 


Hi Lterhecbaorr and welcome to the forums!!!! We call those JDB's Junk Debt Buyer's You could send a DV letter if you want. If he know's it's his debt and it's that old I would offer 10% and be done with it. They can try to collect forever they just can't list it on his credit report. If they don't like the offer you could always send the cease and desist letter. Me personally I paid off all my unpaid debt recently and it feels great that I will never again get a call or letter :smileyhappy:

 

Community Leader, 

 

Dabears

New Member
Lterhecbaorr
Posts: 4
Registered: ‎05-10-2013
0

Re: Collection on OLD debt: Request validation or notify of expired SOL/cease and desist?

Thanks much for the response. We're not unwilling to consider settling it out, but certainly not for more than .10 on the dollar of what their "offer" is. Morally we don't want to dodge it, but I absolutely feel less than zero moral obligation to a shady collection company working for a junk debt buyer. What I REALLY want to avoid is having this re-open an old account for him and having it re-appear on his credit report somehow. It seems like since the reporting period has long past that they legally can't report anything at all to the credit agencies, do you know if that's correct? Also, by offering to settle do you not re-age the account? I'm a little fuzzy on how that works. Again, thanks much for your response, much appreciated. 

Regular Contributor
PeacefulP
Posts: 128
Registered: ‎05-25-2013
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Re: Collection on OLD debt: Request validation or notify of expired SOL/cease and desist?

My husband just got a notice from Northland on behalf of Cavalry too. It's for an old repossession that's not even on his credit report anymore. I'm pretty sure Northland doesn't report to the CRA's, but I too am concerned that Cavalry will try to report and would like to know what we can do-legally-if they do. It's been well over 7 years. 

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Senior Contributor
DaBears
Posts: 3,930
Registered: ‎10-26-2012
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Re: Collection on OLD debt: Request validation or notify of expired SOL/cease and desist?


PeacefulP wrote:

My husband just got a notice from Northland on behalf of Cavalry too. It's for an old repossession that's not even on his credit report anymore. I'm pretty sure Northland doesn't report to the CRA's, but I too am concerned that Cavalry will try to report and would like to know what we can do-legally-if they do. It's been well over 7 years. 


They can no longer report to your husbands credit report as the CRTP has expired. They can still try and collect I would offer 20% settlement and be done with it. You don't want to follow you forever. 

 

Community Leader, 

 

DaBears

Mega Contributor
RobertEG
Posts: 17,456
Registered: ‎03-19-2007
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Re: Collection on OLD debt: Request validation or notify of expired SOL/cease and desist?

I would suggest a multi-step approach.

 

First, send them a DV.  I am assuming that they have not sent dunnng notice, so your DV will invoke an automatic cease collection bar on them until such time as they have provided verification of the debt.  A cease collection bar is comprehensive, and extends to all collection activities, so sending a cease communication letter is redundant at this time. 

 

Next, I would send them a separate communication advising them that the SOL in your state has clearly expired.  The reason for doing so is that there is consistent case law holding that if a debt collector is clearly aware of expiration of SOL on the debt they are attempting to collect, it is a violation of the FDCPA for them to threaten or bring any legal action.  Your notice to them could serve as basis for future legal action against them should they threateh or bring legal action with clear knowledge of expiration of SOL.

 

I would reserve a cease communication letter under FDCPA 805(c) for the eventuality that they send debt verification.  I highly doubt they will do so after seeing that you are aware of your rights.........

 

The remaining issue is that, even after taking all of the above steps, there remains the issue that someone out there is still asserting that you have an unpaid, delinquent debt.  Credit report exclusion and expiration of SOL does not resolve that issue.  If asked in future applications for credit whether you have any unpaid, delinquent debt, you will have a dilemma as to your response.

You could still pursue the base issue of the legitimacy of the debt itself by initiating your own civil action, and obtain a court ruling that it is not legitimate.

A lot of hassle, but if you wish to clear the decks, you might wish to pursue........

Moderator
Shogun
Posts: 12,952
Registered: ‎04-15-2011
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Re: Collection on OLD debt: Request validation or notify of expired SOL/cease and desist?

You have received some really good information.  I will just reinterate some things.  You have an alleged debt they say you owe.  It's obviously old and in the hands of a CA.  As RobertEG said, you should first send a DV, it's a powerful tool when used correctly.  More than likely, you will not hear back from them once sent.  But you must be careful, these old debts that have passed the SOL and CRTP tend to attract the "bottom feeders".


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guiness56
Posts: 22,408
Registered: ‎01-17-2008
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Re: Collection on OLD debt: Request validation or notify of expired SOL/cease and desist?


DaBears wrote:

Lterhecbaorr wrote:

Hello, 

 

My now-husband was unemployed for 3+ years several years ago. As a result he was unable to make payment on a credit card account. The last date of payment was 9+, possibly 10+, years ago and the statue of limitations has long ago expired in the state we lived in at the time (6 years), the state we live in now (6 years), as well as the state of law the original creditor specified (6 years). 

 

He received a letter in the mail today from a Northland Group on behalf of Cavalry SPV I, LLC. From a bit of research it looks like Northland is a collection agency hired by Cavalry who must have purchased the debt from the original creditor. The amount they claim is owed is clearly inflated many times over at this point and lands firmly in the realm of the absurd. 

 

My question is if we should respond with a request for validation and then respond with a statute of limitations/cease and desist letter or simply send the latter from the start. 

 

Thanks in advance for any help. 


Hi Lterhecbaorr and welcome to the forums!!!! We call those JDB's Junk Debt Buyer's You could send a DV letter if you want. They will have 30 days to validate. If he know's it's his debt and it's that old I would offer 10% and be done with it. They can try to collect forever they just can't list it on his credit report. If they don't like the offer you could always send the cease and desist letter. Me personally I paid off all my unpaid debt recently and it feels great that I will never again get a call or letter :smileyhappy:

 

Community Leader, 

 

Dabears


What changed in the past couple of days?  There is no 30 days for them to validate.

Senior Contributor
DaBears
Posts: 3,930
Registered: ‎10-26-2012
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Re: Collection on OLD debt: Request validation or notify of expired SOL/cease and desist?

I have no idea what you're talking about Guiness :smileyembarrassed:

Community Leader
Valued Contributor
azguy13
Posts: 5,381
Registered: ‎04-30-2013
0

Re: Collection on OLD debt: Request validation or notify of expired SOL/cease and desist?

[ Edited ]

Shogun wrote:

You have received some really good information.  I will just reinterate some things.  You have an alleged debt they say you owe.  It's obviously old and in the hands of a CA.  As RobertEG said, you should first send a DV, it's a powerful tool when used correctly.  More than likely, you will not hear back from them once sent.  But you must be careful, these old debts that have passed the SOL and CRTP tend to attract the "bottom feeders".


Hey Shogun, maybe the OP should send a FOAD letter when its all said and done.

 

Ive been waiting to use that :smileyvery-happy:

 

 

****edited for my spelling skills****




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