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LVLN Collections-Zombie Debt

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txbusted
Contributor

LVLN Collections-Zombie Debt

I got a collection letter in the mail today. This threw me because I haven't defaulted on any debt, other than my student loans, in 8 years. The other reason was because it said I owed a debt to Capital One. Now I have a great realtionship now with Capital One (2 CC & Auto Loan). The last time I had a credit card with them was in 2002-2003 at some point. Honestly, I am not sure if I ever paid them all of what I owed. The credit limit was $300 or so but this is saying that I owe $1900 but they will take $200.  

 

I have been doing really good on paying things off and building up my credit. I don't want this to show up on my credit report. From what I have read about this company if it is put on your report it is very hard to get off. 

myFICO's : EQ: 643 // TU: 635// EXP:645

WALLET: Victoria Secret $650 | Simply Be $850 | BOA Cash Rewards $300 I Cap 1 Secured $500 | Cap 1 Plat $4k |Chase Freedom $2.2k l Full Beauty $450 l Woman Within $450 l Wayfair $1.2k l Citi Double Cash $700 l Game Stop $300l Overstock $1K l Lane Bryant $300 l Ulta $750 l Walmart $700 l Target Red $1k
Amazon Chase $1k l Kohls $300
Message 1 of 6
5 REPLIES 5
RobertEG
Legendary Contributor

Re: LVLN Collections-Zombie Debt

I would first send them a DV within 30 days for receipt of their dunning notice in order to impose a cease collection bar on them.

Debts that old can be difficult to validate, and a cease collection bar will stop all collection activities on their part until they have first sent validation.

 

Moving on to the substantive concern as to any credit reporting, if the debt collector does validate and decides to report their collection, they must obtain and report tha DOFD to the CRA.  If the DOFD is more than 7 years plus 180 days ago, the CRA cannot include the collection in any credit report they issue.

If the asserted debt is that old,then credit report inclusion is not a concern.

If a debt collector knows that the DOFD is more than 7 plus 180 ago, they will normally not even bother to report their collection, knowing it will never see the light of day.

 

Did they also advise that SOL appears to have expired, and thus they cannot sue?

Depending upon your state of residence, you may have enhanced debt validation rights and/or the debt collector may have additional requirments.

What is your current state of residence?

 

Similarly, if the OC reports any derogs, they will also apparently be beyond hteir credit report exclusion dates, and will similarly be blocked from credit report inclusion by the CRA.

Message 2 of 6
RonM21
Valued Contributor

Re: LVLN Collections-Zombie Debt

Good advice. You do not want this to report, so take action immediately to work out something with them, in hopes of preventing this from happening.


Total CL: $321.7kUTL: 2%AAoA: 7.0yrsBaddies: 0Other: Lease, Loan, *No Mortgage, All Inq's from Jun '20 Car Shopping

BoA-55k | NFCU-45k | AMEX-42k | DISC-40.6k | PENFED-38.4k | LOWES-35k | ALLIANT-25k | CITI-15.7k | BARCLAYS-15k | CHASE-10k

Message 3 of 6
surferchris
Valued Contributor

Re: LVLN Collections-Zombie Debt


@RobertEG wrote:

I would first send them a DV within 30 days for receipt of their dunning notice in order to impose a cease collection bar on them.

Debts that old can be difficult to validate, and a cease collection bar will stop all collection activities on their part until they have first sent validation.

 

Moving on to the substantive concern as to any credit reporting, if the debt collector does validate and decides to report their collection, they must obtain and report tha DOFD to the CRA.  If the DOFD is more than 7 years plus 180 days ago, the CRA cannot include the collection in any credit report they issue.

If the asserted debt is that old,then credit report inclusion is not a concern.

 

Did they also advise that SOL appears to have expired, and thus they cannot sue?

Depending upon your state of residence, you may have enhanced debt validation rights and/or the debt collector may have additional requirments.

What is your current state of residence?

 

Similarly, if the OC reports any derogs, they will also apparently be beyond hteir credit report exclusion dates, and will similarly be blocked from credit report inclusion by the CRA.


Agreed, good advice.

Current Cards:
AmEx Hilton Honors Surpass//AmEx Platinum Card//Ann Taylor Rewards Mastercard//Capital One Platinum Card//Credit One AmEx//Credit One Platinum VISA//Fingerhut//Navy More Rewards AmEx//TruWest Platinum VISA//Aspire VISA//Costco Anywhere VISA//Lowes Advantage//Apple Card
Loans:
1 Mortgage/////Navy FCU Auto Loan (2020 Jaguar I-Pace)//Capital One Auto (2016 BMW i3)
Next Cards (4th QTR 2022):
Navy Flagship Rewards VISA//Chase Sapphire Preferred
Stats:
Scores: 700's // Inq's: 1 for mortgage // Util: 1% // AoOA: 21 yrs

Message 4 of 6
txbusted
Contributor

Re: LVLN Collections-Zombie Debt


@RobertEG wrote:

I would first send them a DV within 30 days for receipt of their dunning notice in order to impose a cease collection bar on them.

Debts that old can be difficult to validate, and a cease collection bar will stop all collection activities on their part until they have first sent validation.

 

Moving on to the substantive concern as to any credit reporting, if the debt collector does validate and decides to report their collection, they must obtain and report tha DOFD to the CRA.  If the DOFD is more than 7 years plus 180 days ago, the CRA cannot include the collection in any credit report they issue.

If the asserted debt is that old,then credit report inclusion is not a concern.

If a debt collector knows that the DOFD is more than 7 plus 180 ago, they will normally not even bother to report their collection, knowing it will never see the light of day.

 

Did they also advise that SOL appears to have expired, and thus they cannot sue?

Depending upon your state of residence, you may have enhanced debt validation rights and/or the debt collector may have additional requirments.

What is your current state of residence?

 

Similarly, if the OC reports any derogs, they will also apparently be beyond hteir credit report exclusion dates, and will similarly be blocked from credit report inclusion by the CRA.


No the letter did not include that the SOL had expired. I am in Texas. I will just send the DV. Thanks for the advice. 

myFICO's : EQ: 643 // TU: 635// EXP:645

WALLET: Victoria Secret $650 | Simply Be $850 | BOA Cash Rewards $300 I Cap 1 Secured $500 | Cap 1 Plat $4k |Chase Freedom $2.2k l Full Beauty $450 l Woman Within $450 l Wayfair $1.2k l Citi Double Cash $700 l Game Stop $300l Overstock $1K l Lane Bryant $300 l Ulta $750 l Walmart $700 l Target Red $1k
Amazon Chase $1k l Kohls $300
Message 5 of 6
Anonymous
Not applicable

Re: LVLN Collections-Zombie Debt

Since you're in Texas, send a DV letter citing the Texas Financial Code (search for Texas DV letters to get a template) instead of a regular DV letter. I've yet to have a CA be able to provide all the items required under the TFC. Was the card longer than 4 years ago? If so it's out of SOL.
Message 6 of 6
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