Incorrect "Last Payment Date" on credit reports: How to verify/fix?

[Anonymous]

I have a Chase credit card account that is showing "Date of First Delinquency" was 02/2006 but then says "Date of Last Payment" was 12/2007 in the amount of $855.

I didn't make any payments to them after I stopped paying in early 2006. I disputed the information with all three credit bureaus and TransUnion deleted the account from my report however Equifax confirmed the information.

I then called Chase and they said they charged off and sold the account to Arrow Financial on 12/19/2007. They also said Arrow Financial is out of business and I would have to find out who has the account now (LVNV Funding has it per my credit report). I specifically asked if they reported a payment made in Dec. 2007 and they said no, and that it must have been Arrow Financial that reported that.

From the looks of it, Arrow Financial bought the account on 12/19/2007 and then falsly reported that I made a payment. 

I called Equifax back and they said all they can do is dispute it again. How could they have confirmed the "last payment made" date with Chase if I couldn't confirm it?

The SOL here is 6 years from date of last payment so it's very important to find out what that date is. 

[Anonymous]

Anyone?

[Shogun]

Not that it matters, the DOFD is what you would go by anyway.  It is what sets the clock for the  SOL and the CRTP and this one is quickly approaching the end of life.

[Anonymous]

I thought that the SOL was set by date of last payment, not the date of first delinquency. I've read in muliple places that if you make a payment on an old account, the SOL countdown starts all over again. Is that not the case?

BTW, DOFD on this credit card was 02/2006.

[Shogun]

Nope, it goes by DOFD.  This is set by when the account went into arrears and was never brought back to current.

[Anonymous]

That is good to hear. This was the only account that I thought was still within the SOL, all the other accounts I have are coming up on 7 years here in Feb. 2013.

Found this online as well to back up your statement:

"Creditors and debt collectors have a limited time frame to initiate an action for debt (lawsuit) against debtors for nonpayment of credit card bills. That limit is set by a state’s statute of limitations. In Arizona, the statute of limitations for a contract in writing is [b]six years after the cause of action accrues, or within six years of the date the contract went into default[/b] (Arizona Revised Statutes (A.R.S.) § 12-548)."

So even if a payment was made, as long as the contract wasn't brought current and was still in default, then it goes by the date on which the cause of action happened, in this case the cause of action being not making a payment.

[Anonymous]

Another question...

What would happen if I did in fact make a payment to the junk debt buyer? I've seen online that sometimes making a payment means you are signing a new contract...would that then reset the SOL?

With Arrow Financial no longer in business, I wonder what documents LVNV has on record, because they would have to prove that I made a payment and that the payments meant that a new contract was being ooutput into effect. 

[Shogun]

No, a payment to a CA does not reset the clock.  The only way that could happen is if you sign a contract with them and then default.  This would constitute a new debt and then they could set the clock because they have an agreement with you.  Since it is a collection that they now have, you have no contract with them.

[Anonymous]

I guess my thinking was something along the line of possibly receiving a letter from them maybe offering to settle the debt for 3 payments of $855 and then somewhere on the page having a disclaimer saying "Agreeing and making a payment to this account results in a new contract between you and us" or something to that effect. 

Best thing would probably be to just hold on tight for the next year and hope I dont' get served with a lawsuit, and make especially sure that I don't sign any certified/registered mail from anyone so they can't serve me.

[Anonymous]

Dug through some old files and found a paper trail of this account...nothing is really clear but it seems to support that no payment was made in December 2007, especially of $855.

On Sept. 12, 2007, a collection agency called Tate & Kirlin Assoc. had the account and they were trying to collect on it on behalf of Washington Mutual (the original creditor). The amount shown is $16,601.77.

The next corospondance I have is also from Tate & Kirklin Assoc. dated Jan. 21, 2008 but now they were trying to collect for Arrow Financial Services and the total shown is $17,115.91.

So between Sept 12 and Jan. 21, the account went from Washington Mutual to Arrow Financial, which makes sense, as Chase (who bought Wash. Mutual) confirmed that it was sold to Arrow Financial on Dec. 19, 2007.

By my calculations, interest on the amount added approx. $150 per month give or take. The balance shown due on 09/12/07 was $16,601 and then on 01/21/08 was $17,115. If a payment of $855 were to be made in Dec. 2007 toward the balance of $17,051, then the new balance would of been $16,196 in December and around $16,350 in January. However, the letter I have from January 21, 2008 shows a balance of $17,115...pretty much right in line with the Sept. balance + 4 months of accured interest. 

All the letters I have from both Tate & Kirlin and later from Arrow Financial directly both offer settlement offers but none of them offer any sort of payment plan or have any language to the effect of a new contract.