Why say "I am not admitting that the debt is mine"

[George888]

Hello,

Why do all PFDs make a statement that the letter is not an acknowledgment or acceptance of the debt?  Does the acceptance of a debt reset an SOL or CRTP?

I read in a post that an offer to pay may reset the SOL in some states.  Perhaps this is why some PFDs also state that the letter is not a promise to pay, or a payment agreement.  Does anybody know if a promise to pay also resets the CRTP?

Any responses would be helpful.  

Thank you,

[llecs]

Plausible deniability. You wouldn't want any language in your PFD that would indicate that you might possibly own it. They can deny your PFD and sue instead and they'd have proof you admitted to it.

An offer to pay in and of itself will not reset SOL. An offer to pay with an admission of the debt can reset SOL in a small number of states. The language of "promise to pay" can convey that you agree with the debt and can reset SOL.

ETA....nothing legally can reset CRTP.

[George888]

Thank you Ilecs.  Would you happen to know if California is one of these states?  Where can a person find out if their state would reset the SOL if they promised to pay and admitted to the debt?

[llecs]

Every state has their statutes in place. Within the statutes, states will list SOLs on everything like murder, parking tickets, burglary, unpaid CCs, etc. and will often list the financial side of it in a section called a "Uniform Commercial Code". Usually following the SOLs the statute will list out what can and what cannot toll the SOL (e.g. going to prison, moving, making a partial payment, etc.). It takes some research but worth reading. The only thing I know about Cali is that a payment will reset SOL. I don't know about any written promise to pay. I wouldn't risk it though.

Sometimes you can google to find that particular statute. Try "California SOL" or "California UCC" or "Uniform Commercial Code". DO NOT rely on a non-state website. THere are some blog-like pages out there that tell you this or that about state law, even law firms, but they are often incorrect, or at least from my personal experiences. Laws change every year and people don't update their websites every year. But sometimes you can pull a specific statute references and look it up on your own to see if it is still in play.

Now SOL does not matter at all if you have 100% saved up. If inside SOL they can sue when sending PFDs anyway. You can always pay it to avoid a judgment.

[golo]

Will this be a good PFD? What is in red is what worries me,as i think that by that they will validate it and reset the date of last activity along with the SOL,please correct me if i'm wrong as i'm trying to rebuild my credit after a devastating D. Thanks in advance.

Your Name
Your Address
Your City, State Zip


Collector’s Name
Collector’s Address
Collector’s City, State Zip

Date:

Re: Account Number XXXX-XXXX-XXXX-XXXX

Dear Collection Manager:

This letter is in response to your [letter / call / credit report entry] on [date] related to the debt listed above. I wish to save us both some time and effort by settling this debt.

Please be aware that this is not an acknowledgment or acceptance of the debt, as I have not received any verification of the debt. Nor is this a promise to pay and is not a payment agreement unless you provide a response as detailed below.

I am aware that your company has the ability to report this debt to the credit bureaus as you deem necessary. Furthermore, you have the ability to change the listing since you are the information furnisher.

I am willing to pay [this debt in full / $XXX as settlement for this debt] in return for your agreement to remove all information regarding this debt from the credit reporting agencies within ten calendar days of payment. If you agree to the terms, I will send certified payment in the amount of $XXX payable to [Collection Agency] in exchange to have all information related to this debt removed from all of my credit files.

If you accept this offer, you also agree not to discuss the offer with any third-party, excluding the original creditor. If you accept the offer, please prepare a letter on your company letterhead agreeing to the terms. This letter should be signed by an authorized agent of [Collection Agency]. The letter will be treated as a contract and subject to the laws of my state.

As granted by the Fair Debt Collection Practices Act, I have the right to dispute this alleged debt. If I do not receive your postmarked response within 15 days, I will withdraw the offer and request full verification of this debt.

Please forward your agreement to the address listed above. 

Sincerely, 

Your Name

[RobertEG]

I would red-line the requirement "If you accept this offer, you also agree not to discuss the offer with any third-party, excluding the original creditor" unless you have a really compelling reason to include it.

They have obligations to account for the debt, and if and when they may be required to discuss the debt and its satisfaction is kinda beyond their prediction.

It could be a show-stopper in their legal department.   Is this important to you, or was it just a throw-in?