ZOMBIE Debt - Advice Needed - DV Response Recieved HELP

[Anonymous]

Long story short, I had a bad situation with a buyer from Ebay/Paypal back in September of 2010. I was hit with a 1000 charge back that I refused to pay because I was not in the worng. Paypal thought otherwise. I basically stopped using paypal and ebay all together. 

A couple weeks back (6 years later) I recieved a Collection Letter from Convergent Outsourcing stating I owe paypal the $1000. They are offering to settle or I can pay the full debt. As of today there still is no ding on my credit report from either paypal or convergent outsourcing.  I sent a DV letter to them. 

My question is what I should do about this Debt Validation Response I got today? They sent the letter that said the debt is valid, which I already knew  Am I protected by California SOL?I have lived in California and have all my life. Its been over 6 years? Should I just let them report to my CL, like they are threatining to. If they do how long will that stay on my credit report. On the Paypal verification debt receipt it shows DATE OF Charge OFF- 10/25/2010. & Date Place for collection with: 4/27/2011.

Or should I just pay it and hope they don't report it. I don't want to re-age or open the length this will be on my report. I came along way! 

Any Help would be greatly appricated. 

Thanks!

[rmduhon]

It can be reported for up to 7.5 years from the DoFD which would be before the charge off. CRA's regularly exclude items at 7 years. Worst case scenario is it gets reported but will be off again by October. Credit reporting exclusion date cannot be reset, however the SOL can.

[Anonymous]

Thank you for the reply.

So your advice would be to just bite the bullet and if they do report it, either way it will be gone by October. I know it will bother me when I see that collection on my CR but I'm not making any large purchases or any type of purchases that would require a credit pull. My current scores are 776 EX- 720 EQ - 723 - TU. 

I know they will take a major hit with that collection, but if its only until Oct 2017, Im fine with it. 

[Anonymous]

Thank you for the links! 

[Anonymous]

I'd recommend following up with an expired SOL letter.  What's that?  Google "Expired SOL Letter" for examples

Good Luck!

[RobertEG]

Credit report exclusion is not the same as negating the debt.

It is still legitimate and owed, and they can continue legitimate atttempts to collect on the debt.

You can choose to rely on credit report exclusion to remove the collection from your credit report and scoring, but you never know when the presence of an unpaid, delinquent debt could still be a problem.

As an aside, California has an enhanced statute that governs debt collectors if they have purchased and own the debt.

That would bring into play various additional requirements, such as:

(1) the debt balance, including an explanation of any interest charges and additional fees; (2) the date of default or the date of the last payment; (3) the name of the charge-off creditor and the account number associated with the debt; (4) the name and last known address of the debtor as it appeared in the charge-off creditor’s or debt buyer’s records prior to the sale of the debt, as appropriate; (5) the names of all persons or entities that have purchased the debt, and (6) a copy of the contract or other document evidencing your agreement to the debt.

[Anonymous]

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@rmduhon wrote:
It can be reported for up to 7.5 years from the DoFD which would be before the charge off. CRA's regularly exclude items at 7 years. Worst case scenario is it gets reported but will be off again by October. Credit reporting exclusion date cannot be reset, however the SOL can.

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That is worse case scenario, because it could cause current creditors to impose AA, credit lines decreases and/or account closures.

[Anonymous]

Really they would do that (AA) if this hit my report? The only other accounts I have it Amex BCP with 1000 of 10k limit. and WF Rewards. with 1500/4000 limit. I have never had anything negative with either of these accounts. 

[Anonymous]

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@Anonymous wrote:

Really they would do that (AA) if this hit my report? The only other accounts I have it Amex BCP with 1000 of 10k limit. and WF Rewards. with 1500/4000 limit. I have never had anything negative with either of these accounts. 

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As I said, it "could" happen. Regardless of your relationship with your current creditors. A collection or a chargeoff appearing on your reports will capture their attention.

[Anonymous]

Thanks for the info! Appreciate it.

If I were to let it hit my report (if they choose to report it) it would come off 7 years from my DATE OF Charge OFF- 10/25/2010?  As rmduhon stanted previously?