Debt Collection after 8 years

[Anonymous]

Hi there,

maybe someone can give me some advice:

in 2002/03 I left the US and went to Europe. I had quite a few CC (AMEX, Citi, BofA, Discover, Cap1 and a few StoreCards). I lost my job at that time and couldn't pay all of my CCs anymore. I did PIF the AMEX with about $ 2'500.-. The other ones had an average of $1'500.- that I couldn't pay anymore. I think I had 4 chargeoffs. I'm back in the US since mid 2009. When I first checked again my CR in late 2009 I had a score of 600/610/577. In mid 2010 almost everything fell of my CR and my score went up to 730/730/738. I did apply for two secured cards (BofA and Cap1) and got approved with both of them. At the end of 2010 I applied for the AMEX Gold and Discover Card (got approved with both of them). Last month I got approved for the Citi Platinum Select MC with a CL of $2'000.-.

So, I'm really working hard to rebuild my credit. My utilization is almost 0%. I recently discovered, some Debt Collection Agencies were pulling my credit. In the meantime I've received two letters (one from Allgate and one from Asset Management Professionals > AMP) that I have outstanding balances to pay.

Allgate is about $2'000. They are writing that they are authorized to offer a significant discount to help settle the account.

AMP is also about $2'000. They want $1'500 in either 3 payments or 1 PIF.

Well first of all, I don't really have the money to pay them back in full nor to make arrangements for a payment plan. That's the reason why I'm not using my current CCs either. Even though I know I did have this debt and I stand for it, I wonder if I can settle for a better deal.

Should I even contact them? Is there a possibility to renegotiate for a lower payment (I know that the accounts with the original creditors have long been charged off and the Agencies bought the debt for pennies on the dollar)?

Any answers will be greatly appreciated.

[RobertEG]

The very first thing you should do with any old collection is to make sure of the DOFD on the OC account.

That date sets how long it can remain in your CR, and in many cases also sets the running of yur state SOL.

Debt collectors can continue to call you forever, making all kinds of representations.  But most of those are usually hollow, if you are aware of the facts.

If seven years plus 180-days has expired from the DOFD on the OC account, which is apparently your case, then their collection activity cannot be included in your CR.  If your state SOL has also expired, then you have an absolute defense against any legal action they might bring.

If both of those time periods have passed, you can just send them a cease and desist any further communications letter undr FDCPA 805(c), and you wont hear from them again.

I have only one caution in your case.  Some state SOLs have exclusions for periods when you resided outside of the US.  To be certain of your SOL expiration, I suggest that you closely review your state civil code for the SOL on the pertinent type of debt,

[Anonymous]

First of all thank you so much for this quick response.

I did a little bit of homework to figure out what situation I'm in with the DOFD on the OC accounts and the SOL.

Both accounts were the first time 30 days late in April 2003. So, counting the 7 yrs + 180 days, they actually fell off the report in June 2010 (which they did in fact! They are gone and that was when my score went up by over 100 points). That's when I opened a new checking and savings account and applied for my first 2 secured cards.

The SOL in my state for open-ended accounts (includes CC) is 4 years (5 years on a written contract). I assume this is also counted from the DOFD.

While I kept reading the article about SOL i saw this: "Consumers also pay off these accounts when they are not on their credit reports. Even though an account was removed from their credit file, a collector watched their credit report for any activity (actually the computer was watching any credit activity). When the collector spotted the activity, he called the consumer for payment. All the consumer needed to say to the collector was, "I have an absolute defense--the Statute of Limitations has expired." Any opinion on that?

By the way Allgate did pull my CR back in 2007 but haven't heard or seen anything from them until now. AMP though showed up on my CR for pulling my credit for the first time. I strongly assume that AMP has actually bought that debt from another CA.

2 more things. In my state SOL I couldn't find anything that relates to exclusions when residing outside the US, it does mention though when you're changing the state the CO can choose which state SOL better suit him to sue you. Well in my case it'd be still the same state... and on the other hand I probably shouldn't even mention that I was gone for a while. The other thing was that I do have a civil judgment on my CR. Though it dates from 10/2006 and has nothing to do with the CA that I currently have to deal with.

What should I do? Nothing or should I send them a letter telling them that I have an absolute defense - the Statute of Limitations has expired? Also, I'm late in responding. AMP sent me their letter more than two month ago.

Thanks for your time.

[llecs]

SOL can restart in some states if you make a payment on a debt or make a promise to pay (usually written), though it's not like that in every state.

SOL has nothing to do with reporting or even collection activity. A CA can collect past SOL and CRTP (the 7-7.5 yr reporting period).

[RobertEG]

I would not make any statements to them regarding expiration of your SOL unless you are absolutely certain.  Expiration of various state SOLs have conditions, and ultimate expiration of SOL is a matter that a judge decides in court, based on your proofs and the relevant state code.

Why discuss your potential legal defense with your potential adversary?

Make sure that your 6-year hiatus outside the US did not reset or extend your SOL.

[Anonymous]

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@Anonymous wrote:

First of all thank you so much for this quick response.

I did a little bit of homework to figure out what situation I'm in with the DOFD on the OC accounts and the SOL.

Both accounts were the first time 30 days late in April 2003. So, counting the 7 yrs + 180 days, they actually fell off the report in June 2010 (which they did in fact! They are gone and that was when my score went up by over 100 points). That's when I opened a new checking and savings account and applied for my first 2 secured cards.

The SOL in my state for open-ended accounts (includes CC) is 4 years (5 years on a written contract). I assume this is also counted from the DOFD.

While I kept reading the article about SOL i saw this: "Consumers also pay off these accounts when they are not on their credit reports. Even though an account was removed from their credit file, a collector watched their credit report for any activity (actually the computer was watching any credit activity). When the collector spotted the activity, he called the consumer for payment. All the consumer needed to say to the collector was, "I have an absolute defense--the Statute of Limitations has expired." Any opinion on that?

By the way Allgate did pull my CR back in 2007 but haven't heard or seen anything from them until now. AMP though showed up on my CR for pulling my credit for the first time. I strongly assume that AMP has actually bought that debt from another CA.

2 more things. In my state SOL I couldn't find anything that relates to exclusions when residing outside the US, it does mention though when you're changing the state the CO can choose which state SOL better suit him to sue you. Well in my case it'd be still the same state... and on the other hand I probably shouldn't even mention that I was gone for a while. The other thing was that I do have a civil judgment on my CR. Though it dates from 10/2006 and has nothing to do with the CA that I currently have to deal with.

What should I do? Nothing or should I send them a letter telling them that I have an absolute defense - the Statute of Limitations has expired? Also, I'm late in responding. AMP sent me their letter more than two month ago.

Thanks for your time.

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In virtually every state absence from the state tolls the statute of limitations.  I would be extremely careful about mentioning anything that would give a creditor a clue as to your overseas travels.

If you want the CAs to stop calling you or communicating with you, send them a Cease & Desist. 

[Anonymous]

Hi there,

I just checked on my TU and Experian CR, neither of them reports a collection and Experian doesn't either. Even though I think a C&D should resolve the matter, do I have to respond to them? They can't really put the collection on my CR again or can they?

[Anonymous]

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@Anonymous wrote:

Hi there,

I just checked on my TU and Experian CR, neither of them reports a collection and Experian doesn't either. Even though I think a C&D should resolve the matter, do I have to respond to them? They can't really put the collection on my CR again or can they?

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They should not be able to place the tradeline back on your credit report.  The only disadvantage that I see should you not C&D them is that they can call and annoy you forever.  But even that has a silver lining! 

[Anonymous]

Well then, thank you so much for your help. Now, I feel a lot less worried about dealing with them. If anything happens I'll let you know.

Thanks again for all the advice.