topic Re: Bowflex Collection Account in Rebuilding Your Credit

Bowflex Collection Account

Anonymous — Tue, 22 Feb 2011 01:33:49 GMT

I opened this bowflex account back in 1997 or 1998. The collection account was through LVNV Funding and it is now with Allied Interstate. My question is can they still legally collect this debt after this many years? The original balance is $1418 and they are offering me a settlement of $453 on the amount due. I figure this account is at least 13 to 14 years old and have not made any payments for a long time. I hear the statute in Ohio can range up to 15 years for a debt but not sure if that applies to this account. Anyone have any advice for me here?

Re: Bowflex Collection Account

llecs — Tue, 22 Feb 2011 02:11:50 GMT

Regardless of SOL or CRTP, they can collect forever. I have one CA chasing me after 10 years at this point and easily 7 yrs past SOL. Once or twice a year they'll send letters and they used to call until I changed my number.

OH does have the longest SOL for written debts. If you signed any sort of contract or agreement, then assume that the debt is within SOL.

Re: Bowflex Collection Account

Anonymous — Tue, 22 Feb 2011 02:20:06 GMT

I do not recall ever signing any contract or any agreement. This account was based on credit approval through Nautilus that I used when buying the Bowflex machine. I would think that this account was created verbally without any signature of mine.

Re: Bowflex Collection Account

RobertEG — Tue, 22 Feb 2011 06:22:40 GMT

Yes, they can continue to attempt collection of the debt forever. But you can shut them down.

You first have two considerations to deal with..... has the SOL expired, and has more than 7 1/2 years expired from the date of your first delinquency on the OC account before it was closed?

If the SOL has expired, they could not prevail in any legal action.

If the account was closed more than 7 1/2 years ago, the DOFD, whatever it may have been, must necessarily have occured prior to account closing.

Thus, no legal action or posting to your CR is possilbe.

Just send them a very concise letter under FDCPA 605(c), notifying them to cease all further communication with you regarding thisdebt. If they should therafter call you again, they would be in violation of FDCPA 605(c). There is no need to hide or change your phone number. The FDCPA protects you from continued calls from a debt collector.

Re: Bowflex Collection Account

MBOhio2 — Tue, 22 Feb 2011 15:19:44 GMT

tmac - While I obviously don't know the details of this arrangment, I can't imagine that they extended credit to you without a written agreement. There had to have been some document you signed agreeing to this acount. A reputable lender would never extend credit without a written agreement. If you did have a written agreement, then yes, in Ohio, they have the ability to collect the debt through legal action for 15 years and oftentimes, old debts come out of the woodwork in Ohio right around the 14 year mark because they know that SOL is expiring soon.

Re: Bowflex Collection Account

Anonymous — Tue, 22 Feb 2011 17:53:32 GMT

This is past the SOL for reporting on my credit report and is basically a zombie debt. I was approved for credit to buy this over the phone years ago when I called Bowflex. I never personally signed any agreement or paper for the financing. They approved me over the phone and the Bowflex was sent to my door and I made payments to them every month for the balance.

Re: Bowflex Collection Account

MBOhio2 — Tue, 22 Feb 2011 18:22:15 GMT

Make sure you understand the difference between the 7-7.5 period for credit reporting and the "statute of limitations" which is a legal definition referring to the length of time that a creditor has to file suit against you for the debt. These are two totally different concepts. Just because it can no longer be reported on your credit report doesn't mean that the creditor can't sue you for the debt in an Ohio court. Since you were approved over the phone, you may be correct that there was never a written contract, but of course I don't know all of the facts here.

Re: Bowflex Collection Account

Anonymous — Tue, 22 Feb 2011 18:32:49 GMT

Yeah thanks MBOhio. I just cant remember if this account was cosidered to be a revolving account or not. It has been so many years since I have even dealt with this old account. I know one thing doing all of this credit repair is I am never going to get another collection account as long as I live. These accounts have been a real pain to deal with over the years.

Re: Bowflex Collection Account

MBOhio2 — Tue, 22 Feb 2011 18:49:41 GMT

I completely understand... I will have squeaky clean credit for the rest of my life now!

As an FYI, my husband, whom lived in Tennessee most of his life, was sued by a collection agency over a Circuit City credit card that he defaulted on 13/14 years ago when he was like 20. Shortly after we moved to Ohio, we got a summons for the lawsuit. It was crazy - they were literally watching him and as soon as he moved to Ohio, they sued him!

Re: Bowflex Collection Account

IOBA — Tue, 22 Feb 2011 18:57:19 GMT

I didn't hear you say specifically that you still owe on the Bowflex -- but I got the impression you did.

If you do owe on the Bowflex, why not accept the settlement offer and be done with it? It sounds like it would be for less than what was still owed on the original agreement.

Re: Bowflex Collection Account

Anonymous — Tue, 22 Feb 2011 19:59:01 GMT

Yeah IOBA. I guess that is what I will have to do as far as the settlement. The only problem is they want the money by the 28th of this month and I dont have it to give. I am going to call them and see how this can be worked out. Another question I have is on taking this settlement would I have to do a tax form on the remainder of the balance or not?

Re: Bowflex Collection Account

IOBA — Wed, 23 Feb 2011 19:52:37 GMT

If the "forgiven" balance is less than $600, there is no tax liability unless the CA sends a1099 C anyways.

Anything $600+ does require a 1099-C to be mailed to the person. It is treated as income. Not all CA's/OC's send this out, but be prepared to include the figure in your taxes next year.

If you don't have the money from them, then stall.

Ask them for a letter that specifically states that if you "settle" for x amount that the debt will be considered "paid in full" and that no more money is owed. Period. This way, no one can come after you for the unpaid portion. You can nicely let them know that once you have received that letter, with that verbiage, you will mail in the payment.

Re: Bowflex Collection Account

Anonymous — Fri, 04 Mar 2011 01:31:24 GMT

I contacted Allied Interstate about this old debt and I got a reply from them the other day. This is what the letter stated to me.

We would like to acknowledge receipt of your email and provide you with our assistance.

The account you referenced was already placed in a cease status, you should not be receiving any more phone calls or letters regarding this account coming from our company. Your request was also forwarded to our client.

So does this mean that I do not owe this debt with this company or what? I am just trying to figure out if I am still liable for this debt since it was put in a cease status regarding communication ane letters.

Re: Bowflex Collection Account

RobertEG — Fri, 04 Mar 2011 11:13:45 GMT

Yes, you are still obligated for the debt. A cease communication letter restricts their active collection practices, but does not have anything to do with the debt itself.

A cease communication letter does not restrict them from initiating legal action.

Re: Bowflex Collection Account

Anonymous — Fri, 04 Mar 2011 20:45:48 GMT

Thanks Robert. The reason I asked is because I sent them a DV letter about the debt and this was their response back to me.