Please clarify SOL/DOFD

[Anonymous]

My wife received a notice from Asset Acceptance offering to settle her debt for 70% off. The debt is valid, it's a Wells Fargo credit card she had a long time ago. Looking at her reports she made her last payment to WF on 8/29/2010. The account was closed on 10/29/2010. It was then charged off and sold to Asset Management, it looks like they took over the debt on 2/2/2012. She has not received any previous notification from the CA nor has she been in contact. Texas statute of limitations is 4 years, so is she int he clear at this point since last payment was August of 2010? The clock doesn't reset once the CA gets involved, right? 

I realize that even if SOL has passed they can still continue to ATTEMPT to collect. I just want to make sure i am understanding the SOL properly. According to TU the collection is set to be removed on 7/2017. 

Thanks!

[RobertEG]

I dont believe that TX has a reset provision based on payments against the debt, so SOL would probably run from the DOFD, not date of last payment.

Initial running of the SOL would begin on the date she first became delinquent, which is what is referred to in the TX SOL statute as the date of cause of action, which means the date she first became delinquent, giving rise to their ability to seek legal action on a delinquent debt.

That would be the same as the credit reporting date of first delinquency (DOFD).

Regardless, it appears that the TX SOL has tolled.

[Anonymous]

Yes, she is past the SOL on this. Apparently Asset Acceptance realizes that as well, hence the 70% discount. I would counter back with a letter acknowleging that the SOL has passed and you are only willing to settle for $xx (20% of the original balance) if the reporting is deleted. Tell them they have xx days to accept, after which the offer will be reduced by 1% for each month they fail to accept.

The only thing that resets the SOL is coming to a new payment agreement and defaulting on it, or making a FIRM promise (an offer is not a promise) to pay, and then failing to do so.

None of these action should change the amount of time the debt can be reported - thats set in stone with the DoFD.

[gdale6]

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@Anonymous wrote:

My wife received a notice from Asset Acceptance offering to settle her debt for 70% off. The debt is valid, it's a Wells Fargo credit card she had a long time ago. Looking at her reports she made her last payment to WF on 8/29/2010. The account was closed on 10/29/2010. It was then charged off and sold to Asset Management, it looks like they took over the debt on 2/2/2012. She has not received any previous notification from the CA nor has she been in contact. Texas statute of limitations is 4 years, so is she int he clear at this point since last payment was August of 2010? The clock doesn't reset once the CA gets involved, right? 

I realize that even if SOL has passed they can still continue to ATTEMPT to collect. I just want to make sure i am understanding the SOL properly. According to TU the collection is set to be removed on 7/2017. 

Thanks!

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SOL clock starts ticking on the DoFD that leads to the CO. If last payment is 8/10 the earlies DoFD is Oct 2010, so if SOL is 4 yrs this debt is outside and a successful judgment cannot be obtained. Selling the debt to a JDB does not reset the SOL there are some things that may and you should consult your states laws on that.