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How to offer pfd or settlement without resetting SOL?

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Regular Contributor

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?

6 REPLIES
Regular Contributor

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

Sorry, this was meant for the credit forum.

Valued Contributor

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

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.

Contributor

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

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. 


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Valued Contributor

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.


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Established Contributor

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.


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