Northland and Allied Interstate sending collection notice 1yr after SOL?

[LordAthens]

I'm working on my fiancés credit as I do mine and after going through some old mail (her approach was to stick her head in the sand after it all got out of control) I came across a collection from Northland from 03/28/2012.

Background;

Capital One acct opened 11/2006, quickly went to hell. 

Last payment made was 03/2007, making 04/2007 DoFD.

C\O status in 10/2007

Capital One closed the account 12/2009, C/O $642

Pinnacle Credit Services bought the debt and started reporting collections 01/2010

They have continued to report as of 04/2013

I'm not sure if Northland bought the debt from Pinnacle or if they're collecting on behalf of Pinnacle.  That seems odd to have a collection agency collect for another CA?

Further, very recently my fiance got a call from a debt collector trying to settle her Capital One debt, this was within the last 2 or 3 months.  She told me that she never said it was her account, so I think we're clear there.  Richard Parson @ 800.214.7861 called her.  Googling the number it comes back to Allied Interstate.  Some quick research shows that those guys are the lowest scum of the CA scum.

Anyhow, we're in PA and our SOL is 4 years, by my math that makes any debt collection unenforceable as of 04/2011. Aside from a scare tactic, why would Northland and Allied  they be trying to collect on a debt that is out of SOL?

Pinnacle is still reporting, so my plan is to;

1) Attempt to PIF with Capital One (I know, highly unlikely, but it's worth a chance) and have them pull the CA's, then the Pinnacle TL's disappear and I can hopefully get Capital One to show some goodwill and revert the payment history.

2) If that fails then I'll try a very low rate PFD with them (IE, I'll offer $100 to make it go away)* and attempt to good will Capital One (fat chance on a C/O, I know).  As far as I can tell, Northland is trying to collect or bought the debt after the SOL, same with Allied, so they can pound salt.  Neither of them are reporting on her EX or TU.  Still waiting for the EQ report to show up in the mail.

* We are planning on buying a house in the next 5 months.  As I'm the stay at home Dad with only seasonal employment, my income does not afford us the home that we desire.  The sooner I can get her credit fixed up (TU527, EX566, EQ573) and the collections removed, the better shape we'll be in to apply for a joint mortgage as she is the primary income and make rather decent money.

My post is to see what some of the seasoned veterans think.  If we do get her credit to a reasonable level, I don't want something that has been silent on the CR's to pop up.  Additionally, as the debt is no longer collectible, is there anything we can do to have Allied stop calling and harassing her?  I understand that it can be reported on the CR for 7years, but attempting to collect a debt past the SOL is harassment IMO.  Normally I would send a DV with something along the lines of;

Failure to respond, in writing, and in a timely manner, will serve as a waiver to any and all of your claims in this matter and that this matter is permanently closed. Please provide the requested information or correct your records and immediately request the removal of this invalid debt from all sources to which you may have reported.

 

It should be noted that this debt is past the Statute of Limitations for Pennsylvania, and under the FDCPA, request of validation does not “reset or restart” the Statute of Limitations. However any attempt to re-age this account to show that it is within the SOL upon receipt of this letter will be recorded as a violation of the FDCPA and subject you to a fine of $2,500.00, payable to me.

I'm just a little lost on how to proceed, while hopefully getting CapOne to show some goodwill, get Pinnacle gone and protect ourselves from Northland and Allied.

[llecs]

It's not uncommon to have CA#1 report and CA#2 collect on their behalf. Happened to me a few times in my dark credit days. It's also possible that CA#2 bought the debt and CA#1 just hasn't deleted yet. If the latter is the case you'll know within the coming month if they delete.

CAs will continue to collect for a couple of reasons. First, in some states, a payment on an expired debt can result in SOL restarting. So, if they are bugging the debtor and the debtor agrees to a few bucks to get them to shut up, then SOL can restart and they can sue. Second, even if the SOL expired, they can still sue. Most debtors won't go into court (or don't know enough to go into court) to use SOL as a defense. All it takes is a summary judgment and the debtor is on the hook for the debt. Third, they will often continue with the debt knowing they can still report if within CRTP. Most on here want cleaner reports and are willing to pay a debt with the chance they might delete. 

For Allied, just send a DV. If they verify and you (or her) agree then send a PFD. If you disagree, then ask for more info before making a decision to send a PFD. You can insert into the DV that all future communications are to be made in writing and that calls will no longer be permitted. Per the FDCPA they have to stop calling if you request it.

I would change what you wrote. IMO, keep it simple. Definitely invoke Sect. 809 of the FDCPA. Also some states have a FDCPA-like provision within the statutes and you can enclose that too. Look at PA and the CA's state too. Also, you mentioned the FDCPA covers SOL, which it does not. Nix that. Also, the FDCPA has no mention of a $2500 fee.

[LordAthens]

Thanks for your insight llecs.  Regardign the SOL, I'm aware of the reset provisions and ability to sue and needing to raise an affirmative defense, I just wanted to make sure I wasn't missing something else. 

I'm going to bypass Northland and Allied, primarily because at the moment I'm pretty sure Pinnacle still owns the debt.  Once that is paid through them, then as I understand it Northland and Allied would have to wash their hands of us since the debt has been paid.  Of course, if Pinnacle sold the debt, then that changes things.  From what I've read about Allied, I want to have as little communication with them as possible, especially if they're only acting as a collecter and not a buyer. 

Regarding the DV letter, that was a copy and paste of part of a letter from friend who did all of this for himself 2 years ago, sent to Palisades.  He is pretty read up on this, so I'm not sure why he would have made the mistake.  Either way, I will correct the letter.

Thanks.