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agforfree5
Posts: 109
Registered: ‎09-26-2012
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SOL reset by making collection payment?

I am CURRENTLY making payments to CA for an account that is originally reported by the OC as a charge off.

- CA is NOT reporting any information / payments that I am making to them, etc.

- DOFD with the OC is April 2010.

 

My question is.. does the Statue Of Limitations on this debit reset every time I make a payment to the CA ?

 

FYI: I am not asking about credit reporting period. I know how that works (hopefully haha).

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somnipotent
Posts: 367
Registered: ‎06-02-2008
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Re: SOL reset by making collection payment?

[ Edited ]

Yes, the moment you agree to and/or make payments on a collections account that resets the SOL clock.  It does not, however reset the DoFD.  That will still remain on the same 7-7.5 year timetable for deletion.  If you happen to stop paying, then they can sue you since the SOL has been reaged.


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agforfree5
Posts: 109
Registered: ‎09-26-2012
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Re: SOL reset by making collection payment?


Omaplatypus wrote:

Yes, the moment you agree to and/or make payments on a collections account that resets the SOL clock.


Yes, But the CA is not reporting any of the payments to the CRAs. Could the SOL still be reset? The only activity showing is the OC reporting DOFD and on from April 2010. So, I would believe the SOL is going to be based of only what is showing with the CRA. Right ?

 

Sorry this may be a little confusing to follow.

Contributor
agforfree5
Posts: 109
Registered: ‎09-26-2012
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Re: SOL reset by making collection payment?


Omaplatypus wrote:

Yes, the moment you agree to and/or make payments on a collections account that resets the SOL clock.  It does not, however reset the DoFD.  That will still remain on the same 7-7.5 year timetable for deletion.  If you happen to stop paying, then they can sue you since the SOL has been reaged.



So for instance - if I am still within the SOL of this debit, can the CA choose to report to the CRA whenever they want within this time ?  

Frequent Contributor
scarrollprint
Posts: 382
Registered: ‎06-26-2012
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Re: SOL reset by making collection payment?

[ Edited ]

Omaplatypus wrote:

Yes, the moment you agree to and/or make payments on a collections account that resets the SOL clock.  It does not, however reset the DoFD.  That will still remain on the same 7-7.5 year timetable for deletion.  If you happen to stop paying, then they can sue you since the SOL has been reaged.



So for instance - if I am still within the SOL of this debit, can the CA choose to report to the CRA whenever they want within this time ? 

 

SOL has NOTHING to do with reporting.

 

Since it was sent to collections by the OC they have every right to report if they so wish. The fact that they are not reporting it means you should keep your nose down and not poke the sleeping bear. You don't want them to start reporting inside of SOL or not.

 

SOL solely refers to being sued or not. Has nothing to do with reporting. As far are reporting it doesn't matter if you make a payment to a debt collector or not, negative info will be removed after 7.5 years. So if the OC has a dofd, the tradeline will be removed 7.5 years from that date as long as the account is not brought into good standing. If its gone to collections then it will never go back into good standing so you don't have to worry about that.

 

Keep paying the OC and don't say anything and don't miss a payment to the CA as by missing one payment they could easily sue for the balance and get a judgment against you since you will have restarted the SOL clock - again nothing from the CRA deletion clock, they are two different clocks.



Current: Eq- 624 Ex - 631 (lender pulled) TU - 661 (lender pulled)
Goal 700+ across all three
Contributor
agforfree5
Posts: 109
Registered: ‎09-26-2012
0

Re: SOL reset by making collection payment?


scarrollprint wrote:

Omaplatypus wrote:

Yes, the moment you agree to and/or make payments on a collections account that resets the SOL clock.  It does not, however reset the DoFD.  That will still remain on the same 7-7.5 year timetable for deletion.  If you happen to stop paying, then they can sue you since the SOL has been reaged.



So for instance - if I am still within the SOL of this debit, can the CA choose to report to the CRA whenever they want within this time ? 

 

SOL has NOTHING to do with reporting.

 

Since it was sent to collections by the OC they have every right to report if they so wish. The fact that they are not reporting it means you should keep your nose down and not poke the sleeping bear. You don't want them to start reporting inside of SOL or not.

 

SOL solely refers to being sued or not. Has nothing to do with reporting. As far are reporting it doesn't matter if you make a payment to a debt collector or not, negative info will be removed after 7.5 years. So if the OC has a dofd, the tradeline will be removed 7.5 years from that date as long as the account is not brought into good standing. If its gone to collections then it will never go back into good standing so you don't have to worry about that.

 

Keep paying the OC and don't say anything and don't miss a payment to the CA as by missing one payment they could easily sue for the balance and get a judgment against you since you will have restarted the SOL clock - again nothing from the CRA deletion clock, they are two different clocks.


Thanks scarrollprint, I now understand the SOL situitation here.

Last question - So I seem to be a little confused on the reporting question now.

Since the CA is not reporting yet..... For instance, if I miss a payment to CA next month, can the CA begin reporting DOFD next month and the CA account would only be deleted 7.5 years from then? Or does the CA account still get deleted based off the OC's DOFD which is April 2010.

Mega Contributor
RobertEG
Posts: 18,215
Registered: ‎03-19-2007
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Re: SOL reset by making collection payment?

[ Edited ]

Making payments on a debt may or may not reset the statute of limitations for commencing legal action.

There is normally no single SOL statute upon which to base expiration.  Each state is reserved the right to enact its own SOL, unless a federal statute has been enacted for a specific type of debt, such as telecomm debt.

 

Most OC debt, such as credit cards, are controlled by state statute.  Some provide for reset of SOL based on making payments, while others do not.

 

In your situation, expiration of SOL may not even be the major legal concern.  If you have an agreed payment plan that you fail to fulfill, then they have recourse to breach of contract action.  It is serious to make payment contract agreement, and then fail to abide.

 

AS for the debt collector failing to report payments, they do have a legal obligation to do so.  When reporting their collection, they provide the amount of the debt under collection.  FCRA 623(a)(2) requires that once a party has reported information to a CRA, they have a legal requirement to promptly update that reporting so as to maintain its current accuracy.  You are fully within your rights to dispute their failure to report the continuing update of the balance remaining under their collection.

Its significance may not be worth the hassle unless you have a need for others viewing your CR to be aware of the decreased debt, but it is a properly disputable issue.

Contributor
agforfree5
Posts: 109
Registered: ‎09-26-2012
0

Re: SOL reset by making collection payment?


RobertEG wrote:

Making payments on a debt may or may not reset the statute of limitations for commencing legal action.

There is normally no single SOL statute upon which to base expiration.  Each state is reserved the right to enact its own SOL, unless a federal statute has been enacted for a specific type of debt, such as telecomm debt.

 

Most OC debt, such as credit cards, are controlled by state statute.  Some provide for reset of SOL based on making payments, while others do not.

 

In your situation, expiration of SOL may not even be the major legal concern.  If you have an agreed payment plan that you fail to fulfill, then they have recourse to breach of contract action.  It is serious to make payment contract agreement, and then fail to abide.

 

AS for the debt collector failing to report payments, they do have a legal obligation to do so.  When reporting their collection, they provide the amount of the debt under collection.  FCRA 623(a)(2) requires that once a party has reported information to a CRA, they have a legal requirement to promptly update that reporting so as to maintain its current accuracy.  You are fully within your rights to dispute their failure to report the continuing update of the balance remaining under their collection.

Its significance may not be worth the hassle unless you have a need for others viewing your CR to be aware of the decreased debt, but it is a properly disputable issue.



So, by doing so, doesn't the date of last activity on the CA account get updated each time a new payment is reduced from the debt? and doesn't the renewed DOLA each month on the CA account hurt the credit score ?

 

I am almost better off not having the CA report my recent payments, in terms of credit score, correct?

Frequent Contributor
scarrollprint
Posts: 382
Registered: ‎06-26-2012
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Re: SOL reset by making collection payment?

A collection agency should NEVER report recent payments.

 

All it should show is DOFD and the balance and that its a collection. They shouldn't be putting "ok" month after month as that would mean they are coding as something else that they are not. If they are listed and reporting ok month after month they then could report "30 day late" or 120 late month after month...

 

its best that they aren't even on your report let alone reporting payments or not....

 

just make sure that when its all paid off the tradeline with the OC has a $0 balance and says its paid. Otherwise things like mortgages will be tricky.



Current: Eq- 624 Ex - 631 (lender pulled) TU - 661 (lender pulled)
Goal 700+ across all three
Contributor
agforfree5
Posts: 109
Registered: ‎09-26-2012
0

Re: SOL reset by making collection payment?


scarrollprint wrote:

A collection agency should NEVER report recent payments.

 

All it should show is DOFD and the balance and that its a collection. They shouldn't be putting "ok" month after month as that would mean they are coding as something else that they are not. If they are listed and reporting ok month after month they then could report "30 day late" or 120 late month after month...

 

its best that they aren't even on your report let alone reporting payments or not....

 

just make sure that when its all paid off the tradeline with the OC has a $0 balance and says its paid. Otherwise things like mortgages will be tricky.


Got it. Thanks guys. Really cleared it all up for me.


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