Reply
Regular Contributor
igids1
Posts: 191
Registered: ‎07-05-2012
0

How to offer pfd or settlement without resetting SOL?

My state basicallys says something along the lines of, making any promise to pay a debt will reset the SOL. So, my questions are 1)How do I offer a PFD or settlement without resetting/extending the SOL?

 

2)Has anyone ever been bitten in the a$$ by offering one of these, and then years later been sued with the letter presented as evidence?

Regular Contributor
igids1
Posts: 191
Registered: ‎07-05-2012
0

Re: How to offer pfd or settlement without resetting SOL?

Sorry, this was meant for the credit forum.

Valued Contributor
trumpet-205
Posts: 2,486
Registered: ‎11-11-2010
0

Re: How to offer pfd or settlement without resetting SOL?

[ Edited ]

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Example-Letter/m-p/4519#U4519

 

Basically, add "this shall not be considered acknowledgment of this debt" or similar meaning to your letter.

In My Wallet:
Citi Forward (12/2010) | Citi Dividend (05/2011) | Chase Freedom (11/2011) | GECRB/PayPal (05/2012)
Discover it (07/2012) | AMEX BCP (09/2012) | TD/Target REDCard (10/2012) | Chase Ink Classic (11/2012)
BofA BBR (04/2013) | FNBO/Overstock.com (02/2014) | Barclaycard Arrival (04/2014) | FIA/Fidelity AMEX (04/2014)
Contributor
diabla
Posts: 230
Registered: ‎10-01-2012
0

Re: How to offer pfd or settlement without resetting SOL?

Do you mean, if they decline your settlement? Because if they accept, then it doesn't matter that you acknowledged the debt, correct?  If they decline and they use your letter as your acknowledgement of the debt, is that saying that they can change the date of your last activity?  But that wouldn't change the date of your last delinquency, so how would this affect the reporting?

Senior Contributor
Walt_K
Posts: 3,065
Registered: ‎11-02-2009
0

Re: How to offer pfd or settlement without resetting SOL?


diabla wrote:

Do you mean, if they decline your settlement? Because if they accept, then it doesn't matter that you acknowledged the debt, correct?  If they decline and they use your letter as your acknowledgement of the debt, is that saying that they can change the date of your last activity?  But that wouldn't change the date of your last delinquency, so how would this affect the reporting?


Credit reporting time period and statute of limitations are two different things.  If you reset the SOL even if you don't do anything to reset the CRTP, the item might fall off of your credit report but they could still sue you to recover the money. 


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


Take the FICO Fitness Challenge
Valued Contributor
Duncanrr
Posts: 2,843
Registered: ‎06-08-2012
0

Re: How to offer pfd or settlement without resetting SOL?

Specifically say that the PFD shall not be construed as a promise to pay and is made for settlement purposes only. Also state that you contest the validitiy of the debt and reserve all your rights and defenses to contest the allege debt if the PFD is not accepted.

As always, my posts are not to be construed as legal opinions, they do not form any attorney-client relationship and you Gould consult a local attorney for rules and laws applicable to your specific state.


Starting Score: EQ 551 TU 548 CK 607on 6/8/12, EX 542(AMEX pull 3/4/12)
Current Score: EQ 710 TU 727 EX 704 CK 719(FAKO-EX 697, EQ 697, TU 697)
Goal Score: 750

Take the FICO Fitness Challenge
Established Contributor
distantarray
Posts: 2,112
Registered: ‎09-25-2011
0

Re: How to offer pfd or settlement without resetting SOL?

If you don't admit the debt is yours in a PFD then it won't reset SOL, you have to admit it's yours. Remember if the SOL is still active for the debt it could also show the collections LOOK I HAVE MONEY COME AND GET IT and sue you. So never admit to the debt they can sue if you they're feeling hungry enough without listening to any of your offers.


total credit limits $108,400 Credit scores Ex 728 EQ 738 TU 758

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+