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Valued Contributor
Mike_B03
Posts: 1,118
Registered: ‎11-30-2012

"The law limits how long you can be sued on a debt..."

Gotta love that line at the end of a collection letter. :smileyvery-happy: Received one today from Northland Group for an amount over $23,000, which they are offering ot settle for 10%, not a bad offer...but at the end it says:

 

The law limits how long you can be sued on a debt. Because of the age of your debt, LVNV Funding LLC will not sue you for it, and LVNV Funding LLC will not report it to any credit reporting agency.

 


I assume they legally have to say this in the letter if it's past the SOL and reporting period? Also, is Northland Group and LVNV the same company? The letter is from Northland Group but it says the current account holder is LVNV Funding.

Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008

Re: "The law limits how long you can be sued on a debt..."

No, it is not a requirement for them to put that on their letters.   If you acknowledge the debt you have restarted the SOL, in most states.  They are hoping we don't know the laws.

 

Yep, they are both part of Sherman Aquistion

Regular Contributor
ktm214
Posts: 217
Registered: ‎08-24-2009

Re: "The law limits how long you can be sued on a debt..."

So by settling and paying are you acknowledging the debt?
Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008

Re: "The law limits how long you can be sued on a debt..."

[ Edited ]

Not necessarily.  I meant acknowleding the debt in writing.  I probably didn't write that very good. 

 

It could be construed that way.

 

 

 

 

 

Valued Contributor
Mike_B03
Posts: 1,118
Registered: ‎11-30-2012

Re: "The law limits how long you can be sued on a debt..."

So best to just ignore it?

 

Either way, in Arizona, to restart the SOL, you have to bring an action that would bring the account current. Even if you make one payment, as long as the account is still outstanding, it does not reset the SOL...at least that's how I've understood it.

Valued Contributor
rckstrscott
Posts: 2,656
Registered: ‎04-25-2011

Re: "The law limits how long you can be sued on a debt..."


Mike_B03 wrote:

So best to just ignore it?

 

Either way, in Arizona, to restart the SOL, you have to bring an action that would bring the account current. Even if you make one payment, as long as the account is still outstanding, it does not reset the SOL...at least that's how I've understood it.



Mike_B03 wrote:

So best to just ignore it?

 

Either way, in Arizona, to restart the SOL, you have to bring an action that would bring the account current. Even if you make one payment, as long as the account is still outstanding, it does not reset the SOL...at least that's how I've understood it.


Correct.

Question is, do you owe the debt? Just ignoring debt won't make it go away, the debt is still legaly owed. They can try to collect on it forever. A

 

If I were in your position, I would send back a counter offer, and say "How about $500 bucks" -- they probably paid 2 cents on the dollar for this debt, and then its legally settled and no one can hassle you on it.

 

Or, send a cease and desist, and make them sell it to some one else for 1 cent on the dollar.. eventually, I am sure it will just fade into the sunset.. depends on your perspective.

 

-scott

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Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008

Re: "The law limits how long you can be sued on a debt..."


Mike_B03 wrote:

So best to just ignore it?

 

Either way, in Arizona, to restart the SOL, you have to bring an action that would bring the account current. Even if you make one payment, as long as the account is still outstanding, it does not reset the SOL...at least that's how I've understood it.


I don't know what AZ laws are, I would have to look them up.  Each state is different.

 

I was only trying to point out that the CA more than likely thinks consumers are not smart when it comes to the laws on debt and by saying what they said was just a way to get you to pay.

Mega Contributor
RobertEG
Posts: 17,251
Registered: ‎03-19-2007

Re: "The law limits how long you can be sued on a debt..."

[ Edited ]

I dont see their statement as a "trick" on their part, as it is an express statement that they wont sue based on apparent expiration of the prevaiiling statute of limitations.

 

There is a growing body of federal case law holding that taking or attempting to take legal action on a debt upon which they have actual knowledge of expiration of SOL is an actionable violation of the FDCPA.  I think they are covering their hind quarters against any possible inference of attempted legal action that could be construed as an FDCPA violation.

Smart move, in my opinion.

Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008

Re: "The law limits how long you can be sued on a debt..."

New Contributor
manzanita
Posts: 74
Registered: ‎03-13-2012

Re: "The law limits how long you can be sued on a debt..."


guiness56 wrote:

No, it is not a requirement for them to put that on their letters.   If you acknowledge the debt you have restarted the SOL, in most states.  They are hoping we don't know the laws.

 

Yep, they are both part of Sherman Aquistion


Can you clarify what you think might be an acknowledgement of the debt? It seems like there is some very grey areas with regard to SOL (when does it begin, how it is restarted, etc).

 

For example - if something is sitting on a credit report, and is out of SOL, is taking ANY action considered acknowledgement, including a PFD that does not admit to ownership or knowledge? I just posted a question regarding an acct about to fall out of SOL in NY. Feel free to post a response there so as not to hijack this thread...though future readers might find a response here helpful as well. Whatever is the better forum etiquette.

 

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/SOL-almost-up-on-a-collection-Next-Steps/td-p...

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