Removing Credit Delinquency After Winning Court Case

[emptynest13]

Several years ago, my no ex-husband purchased a water softener for our home.  In the divorce decree, we were to split the cost 50/50. I paid my half, he never did.  The company sued me last year for the balnce along with a huge amount of interest and fees.  The original cost was $5000, I paid $2500 and they sued me for $16,000. I hired a lawyer, who explained that the divorce decree had nothing to do with the debt.  I won the court case, the judge said they waited too long to sue me basically.  For some reason, they keep increasing the amount that they say I owe, and it is now at over $20,000!  What can I do to get this off of my credit report, or is there nothing that I can do.  Its severely hindering my score.  Any advice would be appreciated. 

[RobertEG]

You apparently raised on expiration of SOL defense at trial, and the judge ruled that you proved your case, and that the debt was thus time-barred from any judgment.

If that is the case, then that absolute defense ended their legal action without any need for trial on the merits of the debt itself, or its amount.

Thus, it would not be a finding regarding the legitimacy of the debt, and not a basis for assertting that they cannot continue to collect on the debt.

Your issue is apparently not the legitimacy of the debt itself, but rather the amount they are attempting to collect.

Thus, the issue appears not to be one of accuracy of their reporting of a collection,but rather of the amount of the current balance they are reporting and attempting to collect.

You can dispute the amount of the debt, and thus require them to investigate and verify that it is accurate.

If they were to agree, credit report deletion would not be the required outcome.  They can always revise their reporting.

If they verify the accuracy of the asserted debt, they dont have to prove the issue in order to verify, so a dispute may not resovle any issues of the legitimacy of the debt or its amount.

To get legal resolution would then require getting the unresolved issue of the amount of the debt back before a court for determination of that issue.

I would suggest digging out a copy of the agreement that was signed when your purchased the item.

It will include a statement of what amounts they are authorized to attempt to collect, and would most likely be the agreement that would control in any legal proceeding.

What, specifically, is the adverse information that the creditor has reported?  Monthly delinquencies?  A charge-off of the debt?

Even if the debt were found to be less than they are now asserting, that may not have any effect on the accuracy of the delinquencies or reporting of a CO per se.

My suggestion would be to consider offering them a settlement based on their agreement to delete all prior derogs from your credit file.

[emptynest13]

They are reporting it as a charge-off, and increasing the amount every month.  When I originally paid my portion off, the balance was $2600+.  They waited 9 years to sue me for it, during which time interest accrued.  According to the judgment, they should have sued me after I missed the first payment, but they didn't.  Unfortunately I had no proof of payments since I thought it was over once we were divorced, so I had to rely on their records, which is what the judge used.  If I won the case, I don't see why I would have to pay them to remove this from my credit.  They never went after my ex and it was in his name!  I don't believe that it is a charge-off either, because I won the case and paid what I owed.

[randyrhodes]

So this debt is from nearly 10 years ago? And they're still reporting it? If you paid your half 9 yr ago the DOFD would have been not long after that thus should have run its CRTP by now I would think?

[RobertEG]

+1

The creditor was required to have reported the DOFD on their account within 90 days after reporting their charge-off

It is the DOFD, and the DOFD alone, that determines when their charge off must become excluded from your credit report, whiich is one date-certain... no later that 7 years plus 180 days from the reported DOFD.  The CRA uses the reported DOFD to determine the credit report exclusion date.

So if it is still appearing in your credit report there are one of two possibilities.

Either the creditor.reported a DOFD that is less than 7 years plus 180 days ago, or, if the reported DOFD is more than 7/180 ago, the CRA is at fault for not having excluded after the max statutor date.

You need to get the DOFD that they reported to the CRA.

If they have incorrectly reported the DOFD, you should file a direct dispute with them over its accuracy.

If the reported DOFD was more than 7/180 ago and it's still showing in your credit report, then file a formal complaint wth the CRA and perhaps also with the CFPB for their volation of the credit report exclusion period set forth in FCRA 605(c) for a charge-off.

However, that only relates to credit report exclusion.  It does not address the asserted legitimacy of the debt, which was not resolved in the prior legal action.

[songsofexperience]

Perhaps I am wrong given RobertEG's answers, but it was my understanding that if you were sued for a debt and won, that the plaintiff had to cease collections attempts, could not sue you again, could not sell the debt to anyone else, and so on. Here's a letter I sent to PRA after I won my case (they sued me). They did as asked and removed the collection account from my CR. I guess the difference is, the judge decided I didn't owe PRA, not that they were past the SOL for collections. That said, since they lost, they cannot continue to try to collect (at least, that's my understanding).

Good luck.

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To Whom It May Concern:

As you know, in the above referenced case, which went to Bench Trial on July 16, 2013, judgment was found in favor of the defendant (me).

This letter serves as a courtesy reminder that Portfolio Recovery Associates, LLC must now remove this account from all credit reports. Please see the FDCPA, section 1692e(8), for a full reminder. I would not want you to be in violation of the FCRA.

In addition, I wish to remind you that:

• You may not sue me again for this same account
• You may not transfer or assign this account to another debt collector
• You may not sell this account to another debt collector

 For your records I have included a copy of the judgment from District Judge XXX.

I appreciate your cooperation in this matter and look forward to seeing this account removed from ALL credit reports/reporting agencies by September 1, 2013.

[RobertEG]

What you "win" in a civil case is limited to the issue ruled upon by the court.

You dont win anything that is not part of the decision.

Upon rasising an SOL defense, the court considers that issue first.

If they find the debt to be time-barred due to expiration of the SOL, they do not then consider the legitimacy of the debt or of its amount. 

The trial is concluded.

The win in this case was the lack of ability to obtain a judgment due to expiration of the SOL.

There was no finding as to the legitimacy of the debt.

[gdale6]

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@emptynest13 wrote:

They are reporting it as a charge-off, and increasing the amount every month.  When I originally paid my portion off, the balance was $2600+.  They waited 9 years to sue me for it, during which time interest accrued.  According to the judgment, they should have sued me after I missed the first payment, but they didn't.  Unfortunately I had no proof of payments since I thought it was over once we were divorced, so I had to rely on their records, which is what the judge used.  If I won the case, I don't see why I would have to pay them to remove this from my credit.  They never went after my ex and it was in his name!  I don't believe that it is a charge-off either, because I won the case and paid what I owed.

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The account should not even be reporting on your CRs if they waited 9 years to sue, CRTP is 7.5 yrs from DOFD, I would dispute with the CRAs as obsolete based on the DOFD. As far as the CA send them a FOAD letter if you dont want to hear from them, If you want to settle I would advise pennies on the dollar there is nothing more they really can do if they sue again you hit them with the SOL and since its been attempted already they should just slither back into their hole. Good luck