topic SOL and Reversed Payments in Rebuilding Your Credit

SOL and Reversed Payments

bearclaw84 — Sat, 29 Dec 2012 15:54:18 GMT

Hi all this might be a long one so bear with me please!!!! I live in Az and have a promissory note that my last successful payment drawn from my checking account was in 10/02/2006, the SOL in Az is 6 years. All 3 credit reports are showing that the account was past due from May 06' until Jan 07" where it was current and then goes directly back to delinquent until it charged off in Sep 07'. I went and got old statements from both my Checking account and the OC on the loan neither one shows any payment in Jan 07', the weird thing is that the OC statements show payments as late as June 07' and then they are immediately reversed on the same day. There are several payments on the OC statement that are not on any of my checking account statements, my question would be is SOL start from May 06' where I have statements from both the OC and my checking account showing a withdrawal or would these reversed payments make the SOL start later? The OC statement shows that even in May 06' the account was delinquent and never recovered to a current status, would I be ok sending the CA(Cavalry Portfolio) a past SOL letter and trying to settle with a PFD, am I legally past SOL at this point? I am trying really hard to get this cleared up and don't want to send them a letter and risk getting sued and getting a Judgment, I know that Az SOL is from cause of action so what do the guru's on here think of this messed up situation? Also my Experian shows account scheduled to continue on record until 10/2013 if that helps at all???

Re: SOL and Reversed Payments

Shogun — Sat, 29 Dec 2012 16:47:31 GMT

If it is scheduled to fll off in October then it should be passed the SOL. If you are willing to do a PFD then there's no reason to be worried about a judgement, you would just pay before they took you to court. If you have the money, send the PFD.

Re: SOL and Reversed Payments

bearclaw84 — Sat, 29 Dec 2012 16:56:39 GMT

If it is past SOL I would like to PFD for less then the amount owed as it is a rather large amount and I cannot pay what they claim I now owe? Would this be a good idea to try a PFD for less then I owe or maybe a settlement? I just want it off my reports.....

Re: SOL and Reversed Payments

Shogun — Sat, 29 Dec 2012 17:00:36 GMT

Sure you can go for a discount. I would!

Re: SOL and Reversed Payments

RobertEG — Sat, 29 Dec 2012 17:51:43 GMT

There is only one person who can tell you whether an SOL has expired on a given debt. The judge.

SOL only expires when a judge rules as such. There are cases where expiration of SOL may be obvious, but it still requires proofs.

When a defendent raises expiration of SOL as a defense, he/she must state the relevant begin date, and support it with proofs.

The plaintiff then has the opportunity to contest that assertion with their own proofs.

Most SOL statutes use the "date of cause of action" definition, which is the date the account became delinquent, thus giving rise to the ability to bring legal action. That is usually the same as the DOFD. Issues such as bringing the account back into good standing, and thus initiating a new date of delinquency, are resolved by the judge.

You make your best guess depending upon how strong your factual showing is.

Another wrinkle may arise if the promissory note was signed in a different state, as debt collectors have the option of bringing legal action either in the jurisdiction where the agreement establishing the debt was signed or in the jurisdiction of current residency of the consumer. FDCPA 611.

The SOL at trial would then be that of the jurisdiction of the court.

The first thing I would do in determining whether the SOL will be an issue at trial is to obtain the DOFD reported by the original creditor to the CRA, as that is their reported version of the current date of first delinquency, including any legal reset based on the account having been brought back into good standing, and thus establishing a new DOFD.

If the CRA is reporting an expected exclusion date of 10/2013, the issue is what DOFD they used in making that guesstimate, and what period they used.

The max exclusion date is 7 yrs plus 180 days from DOFD, which would suggest a reported DOFD of 4/2006. However, that presupposes the CRA used the full period in their guesstimate. It could be less, such as 7 yrs, making the reported DOFD around 10/2006.

Dont rely on an estimated date. Get the actual, reported DOFD in your file. If different from your records, it could be disputed now rather than waiting for a court review.