Question About a Very Old Debt and Better Credit

[wwtthhpp]

In my college years I was like many college kids who opened up a few CC accounts and also like those college kids I had some accounts that went delinquent. I eventually straightened myself up and paid off most of my debts. However, there was one that went unpaid and eventually went into collections. It went in around 2002-2003, about the same time I was cleaning up everything else. About 5 years later, I was finally able to open another CC account to begin rebuilding my credit along with an auto loan and PL and I also opened another 2 CC accounts as well. Each of these has been or remains paid off. The loans have been paid off recently and one of my CCs (Walmart) was recently upgraded to a Walmart Discover card. This has helped push my credit score over the 700 mark for the first time in a LONG time. Recently however, and I am sure paying off or upgrading these accounts helped, I have been receiving correspondence regarding the old account which went unpaid. I have been contacted via phone, mail and even at work. I have been contacted by CAs not the OC and given that the statute of limitations in Arkansas is 3-5 years, I am sure this account is well past that limit so they can no longer report it or sue me because of it. My questions are what recourse do I have? Can they continue badgering me anywhere they please? Is there anything I can do to get them to stop? Should I pay off the debt or would that open up a whole new can of worms? Is there anything else I need to be aware of?

[llecs]

Even if CRTP and SOL expires, they can collect forever. You could send a C&D letter, but if I had that (and I do), I'd ignore it. Calling at work may be a pain in the butt for you though. Your employer can tell them to stop, and by law they must, and you could go after them if they keep calling. However, you'd need your employer's help in any court case.

It's quite OK to pay if you owe it, but if you do, never admit to it unless you get a settlement letter from the CA in writing before paying one dime. Never talk to the CA. If you do settle, send anything in writing and don't admit to anything. Never pay off a debt in installments. A payment can reset SOL in some states. Admitting to the debt can reset SOL in some states. Acknowledging the debt in some states can reset SOL. As far as you are concerned, you know zilch about this debt until you can get a settlement letter from them.

[snsforever916]

O

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@llecs wrote:

Even if CRTP and SOL expires, they can collect forever. You could send a C&D letter, but if I had that (and I do), I'd ignore it. Calling at work may be a pain in the butt for you though. Your employer can tell them to stop, and by law they must, and you could go after them if they keep calling. However, you'd need your employer's help in any court case.

It's quite OK to pay if you owe it, but if you do, never admit to it unless you get a settlement letter from the CA in writing before paying one dime. Never talk to the CA. If you do settle, send anything in writing and don't admit to anything. Never pay off a debt in installments. A payment can reset SOL in some states. Admitting to the debt can reset SOL in some states. Acknowledging the debt in some states can reset SOL. As far as you are concerned, you know zilch about this debt until you can get a settlement letter from them.

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Okay, I know this is a little off topic but if I have a charge off from Cap1. I am trying to do a payment arrangement to get their chargeoff deleted. My letter accepts responsilbity and I live in CA. Would this reset the SOL or the CRTP? It will fall off June of 2015. I want to pay but I'd rather not restart the clock!

[llecs]

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@snsforever916 wrote:

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@llecs wrote:

Even if CRTP and SOL expires, they can collect forever. You could send a C&D letter, but if I had that (and I do), I'd ignore it. Calling at work may be a pain in the butt for you though. Your employer can tell them to stop, and by law they must, and you could go after them if they keep calling. However, you'd need your employer's help in any court case.

It's quite OK to pay if you owe it, but if you do, never admit to it unless you get a settlement letter from the CA in writing before paying one dime. Never talk to the CA. If you do settle, send anything in writing and don't admit to anything. Never pay off a debt in installments. A payment can reset SOL in some states. Admitting to the debt can reset SOL in some states. Acknowledging the debt in some states can reset SOL. As far as you are concerned, you know zilch about this debt until you can get a settlement letter from them.

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Okay, I know this is a little off topic but if I have a charge off from Cap1. I am trying to do a payment arrangement to get their chargeoff deleted. My letter accepts responsilbity and I live in CA. Would this reset the SOL or the CRTP? It will fall off June of 2015. I want to pay but I'd rather not restart the clock!

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I don't know Cali's laws well enough. I know for sure that  a payment will reset the SOL [in California]. So, making that first payment will reset that clock. Nothing can reset the 7-7.5 yr CRTP.

[snsforever916]

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@llecs wrote:

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@snsforever916 wrote:

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@llecs wrote:

Even if CRTP and SOL expires, they can collect forever. You could send a C&D letter, but if I had that (and I do), I'd ignore it. Calling at work may be a pain in the butt for you though. Your employer can tell them to stop, and by law they must, and you could go after them if they keep calling. However, you'd need your employer's help in any court case.

It's quite OK to pay if you owe it, but if you do, never admit to it unless you get a settlement letter from the CA in writing before paying one dime. Never talk to the CA. If you do settle, send anything in writing and don't admit to anything. Never pay off a debt in installments. A payment can reset SOL in some states. Admitting to the debt can reset SOL in some states. Acknowledging the debt in some states can reset SOL. As far as you are concerned, you know zilch about this debt until you can get a settlement letter from them.

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Okay, I know this is a little off topic but if I have a charge off from Cap1. I am trying to do a payment arrangement to get their chargeoff deleted. My letter accepts responsilbity and I live in CA. Would this reset the SOL or the CRTP? It will fall off June of 2015. I want to pay but I'd rather not restart the clock!

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I don't know Cali's laws well enough. I know for sure that  a payment will reset the SOL [in California]. So, making that first payment will reset that clock. Nothing can reset the 7-7.5 yr CRTP.

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Thanks so much for your response! You're great!!!!! So, if I make a payment arrangement for $986, the amount of the charge off. I would be able to pay that back in 6 months or less with out any issues. Does this mean that they could sue me during that time period? Does sending a letter intiating a payment arrangement reset SOL? This is just too confusing. I really wish they would take a payment and allow debtors to move on!

[llecs]

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snsforever916 wrote

Thanks so much for your response! You're great!!!!! So, if I make a payment arrangement for $986, the amount of the charge off. I would be able to pay that back in 6 months or less with out any issues. Does this mean that they could sue me during that time period? Does sending a letter intiating a payment arrangement reset SOL? This is just too confusing. I really wish they would take a payment and allow debtors to move on!

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They can sue anytime, but you would have had a written agreement with them and they won't sue so as long as you abide by the terms of that agreement. If you skip a payment and stop paying, they can then decide to nullify the agreement and go for the full amount (hence, always avoid installment payments....though you gotta do what you gotta do to avoid a judgment absent any sort of agreement to repay). Just get any agreement in writing, pay as scheduled, and you'll be OK.

ETA...I give up. Stupid HTML code.

[snsforever916]

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@llecs wrote:

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snsforever916 wrote

Thanks so much for your response! You're great!!!!! So, if I make a payment arrangement for $986, the amount of the charge off. I would be able to pay that back in 6 months or less with out any issues. Does this mean that they could sue me during that time period? Does sending a letter intiating a payment arrangement reset SOL? This is just too confusing. I really wish they would take a payment and allow debtors to move on!

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They can sue anytime, but you would have had a written agreement with them and they won't sue so as long as you abide by the terms of that agreement. If you skip a payment and stop paying, they can then decide to nullify the agreement and go for the full amount (hence, always avoid installment payments....though you gotta do what you gotta do to avoid a judgment absent any sort of agreement to repay). Just get any agreement in writing, pay as scheduled, and you'll be OK.

ETA...I give up. Stupid HTML code.

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Thank you so much! That is what I was figuring. I may just wait until I can make a lump sum payment since they are out of SOL and hopefully I can make a PIF PFD deal! =o)