Senior Contributor
Posts: 3,494
Registered: ‎05-25-2008
Re: First Premier Bank Card need help charge-off

JShidell wrote:
Hello, I to have a charge-off account with First Premier Bank and on my credit report it shows a 0 balance for first premier and apparently it was sold to Arrow Financial, which is reported on my credit report. Mine is not scheduled to fall off until 2011. I was planning on trying to take care of this debt this week. I owe about $575. What is the difference between paying this before or after SOL? If I were to pay this off before SOL in full, they can't still sue can they? I think its getting pretty close to the SOL date, but I'm not quite sure. I do know I want to get pay this debt though. v/r James

A creditor CAN sue, even after the SoL has run out ... and you *would* have to go to court. The saving grace of SoL is that once IN court (unless you can reason with the creditor/litigator) is that you have what's called a "permissible defense."

And basically all that is, is pretty much saying to the creditor: "if you wanted your money, you should have taken action earlier -- now it's too late, bye-bye."

Offering a PFD (Pay-For-Delete) AFTER the SoL has run out gives the CA more incentive to accept that offer. Since it's a given that if they take the time to try to take you to court AFTER the SoL, chances are, the judge will laugh them out of the room and they have no LEGAL way of forcing you to pay (other than ruining your credit). It's case where it's a win-win for everyone -- they get the money (which they'd not be able to get otherwise) and you get the nasty off your CRs.

What is the date of last activity on this account?? If it's more than 4 years ago, I'd offer a PFD ... otherwise, you could wake a sleeping giant and be forced to pay the balance (by being sued) AND not get it off your CRs.


Hubby's FICOs when we started: high 400s (June 2008)
Hubby's FICO NOW (04/06/09): TU: 679 EQ: 608 EX: ???
My FICOs: TU: 643, EQ: 606
Closed on new home: 1/20/2009 -- If we can do it, YOU can do it!!