topic Re: Collection on OLD debt: Request validation or notify of expired SOL/cease and desist? in Rebuilding Your Credit

Collection on OLD debt: Request validation or notify of expired SOL/cease and desist?

Anonymous — Fri, 02 Aug 2013 00:35:57 GMT

Hello,

My now-husband was unemployed for 3+ years several years ago. As a result he was unable to make payment on a credit card account. The last date of payment was 9+, possibly 10+, years ago and the statue of limitations has long ago expired in the state we lived in at the time (6 years), the state we live in now (6 years), as well as the state of law the original creditor specified (6 years).

He received a letter in the mail today from a Northland Group on behalf of Cavalry SPV I, LLC. From a bit of research it looks like Northland is a collection agency hired by Cavalry who must have purchased the debt from the original creditor. The amount they claim is owed is clearly inflated many times over at this point and lands firmly in the realm of the absurd.

My question is if we should respond with a request for validation and then respond with a statute of limitations/cease and desist letter or simply send the latter from the start.

Thanks in advance for any help.

Re: Collection on OLD debt: Request validation or notify of expired SOL/cease and desist?

DaBears — Sun, 04 Aug 2013 03:39:11 GMT

@Anonymous wrote:
Hello,

My now-husband was unemployed for 3+ years several years ago. As a result he was unable to make payment on a credit card account. The last date of payment was 9+, possibly 10+, years ago and the statue of limitations has long ago expired in the state we lived in at the time (6 years), the state we live in now (6 years), as well as the state of law the original creditor specified (6 years).

He received a letter in the mail today from a Northland Group on behalf of Cavalry SPV I, LLC. From a bit of research it looks like Northland is a collection agency hired by Cavalry who must have purchased the debt from the original creditor. The amount they claim is owed is clearly inflated many times over at this point and lands firmly in the realm of the absurd.

My question is if we should respond with a request for validation and then respond with a statute of limitations/cease and desist letter or simply send the latter from the start.

Thanks in advance for any help.

Hi Lterhecbaorr and welcome to the forums!!!! We call those JDB's Junk Debt Buyer's You could send a DV letter if you want. If he know's it's his debt and it's that old I would offer 10% and be done with it. They can try to collect forever they just can't list it on his credit report. If they don't like the offer you could always send the cease and desist letter. Me personally I paid off all my unpaid debt recently and it feels great that I will never again get a call or letter

Community Leader,

Dabears

Re: Collection on OLD debt: Request validation or notify of expired SOL/cease and desist?

Anonymous — Sat, 03 Aug 2013 12:36:12 GMT

Thanks much for the response. We're not unwilling to consider settling it out, but certainly not for more than .10 on the dollar of what their "offer" is. Morally we don't want to dodge it, but I absolutely feel less than zero moral obligation to a shady collection company working for a junk debt buyer. What I REALLY want to avoid is having this re-open an old account for him and having it re-appear on his credit report somehow. It seems like since the reporting period has long past that they legally can't report anything at all to the credit agencies, do you know if that's correct? Also, by offering to settle do you not re-age the account? I'm a little fuzzy on how that works. Again, thanks much for your response, much appreciated.

Re: Collection on OLD debt: Request validation or notify of expired SOL/cease and desist?

PeacefulP — Sat, 03 Aug 2013 14:39:31 GMT

My husband just got a notice from Northland on behalf of Cavalry too. It's for an old repossession that's not even on his credit report anymore. I'm pretty sure Northland doesn't report to the CRA's, but I too am concerned that Cavalry will try to report and would like to know what we can do-legally-if they do. It's been well over 7 years.

Re: Collection on OLD debt: Request validation or notify of expired SOL/cease and desist?

DaBears — Sat, 03 Aug 2013 15:34:09 GMT

@PeacefulP wrote:
My husband just got a notice from Northland on behalf of Cavalry too. It's for an old repossession that's not even on his credit report anymore. I'm pretty sure Northland doesn't report to the CRA's, but I too am concerned that Cavalry will try to report and would like to know what we can do-legally-if they do. It's been well over 7 years.

They can no longer report to your husbands credit report as the CRTP has expired. They can still try and collect I would offer 20% settlement and be done with it. You don't want to follow you forever.

Community Leader,

DaBears

Re: Collection on OLD debt: Request validation or notify of expired SOL/cease and desist?

RobertEG — Sat, 03 Aug 2013 18:22:48 GMT

I would suggest a multi-step approach.

First, send them a DV. I am assuming that they have not sent dunnng notice, so your DV will invoke an automatic cease collection bar on them until such time as they have provided verification of the debt. A cease collection bar is comprehensive, and extends to all collection activities, so sending a cease communication letter is redundant at this time.

Next, I would send them a separate communication advising them that the SOL in your state has clearly expired. The reason for doing so is that there is consistent case law holding that if a debt collector is clearly aware of expiration of SOL on the debt they are attempting to collect, it is a violation of the FDCPA for them to threaten or bring any legal action. Your notice to them could serve as basis for future legal action against them should they threateh or bring legal action with clear knowledge of expiration of SOL.

I would reserve a cease communication letter under FDCPA 805(c) for the eventuality that they send debt verification. I highly doubt they will do so after seeing that you are aware of your rights.........

The remaining issue is that, even after taking all of the above steps, there remains the issue that someone out there is still asserting that you have an unpaid, delinquent debt. Credit report exclusion and expiration of SOL does not resolve that issue. If asked in future applications for credit whether you have any unpaid, delinquent debt, you will have a dilemma as to your response.

You could still pursue the base issue of the legitimacy of the debt itself by initiating your own civil action, and obtain a court ruling that it is not legitimate.

A lot of hassle, but if you wish to clear the decks, you might wish to pursue........

Re: Collection on OLD debt: Request validation or notify of expired SOL/cease and desist?

Shogun — Sun, 04 Aug 2013 00:16:50 GMT

You have received some really good information. I will just reinterate some things. You have an alleged debt they say you owe. It's obviously old and in the hands of a CA. As RobertEG said, you should first send a DV, it's a powerful tool when used correctly. More than likely, you will not hear back from them once sent. But you must be careful, these old debts that have passed the SOL and CRTP tend to attract the "bottom feeders".

Re: Collection on OLD debt: Request validation or notify of expired SOL/cease and desist?

Anonymous — Sun, 04 Aug 2013 02:51:32 GMT

@DaBears wrote:
@Anonymous wrote:
Hello,

My now-husband was unemployed for 3+ years several years ago. As a result he was unable to make payment on a credit card account. The last date of payment was 9+, possibly 10+, years ago and the statue of limitations has long ago expired in the state we lived in at the time (6 years), the state we live in now (6 years), as well as the state of law the original creditor specified (6 years).

He received a letter in the mail today from a Northland Group on behalf of Cavalry SPV I, LLC. From a bit of research it looks like Northland is a collection agency hired by Cavalry who must have purchased the debt from the original creditor. The amount they claim is owed is clearly inflated many times over at this point and lands firmly in the realm of the absurd.

My question is if we should respond with a request for validation and then respond with a statute of limitations/cease and desist letter or simply send the latter from the start.

Thanks in advance for any help.
Hi Lterhecbaorr and welcome to the forums!!!! We call those JDB's Junk Debt Buyer's You could send a DV letter if you want. They will have 30 days to validate. If he know's it's his debt and it's that old I would offer 10% and be done with it. They can try to collect forever they just can't list it on his credit report. If they don't like the offer you could always send the cease and desist letter. Me personally I paid off all my unpaid debt recently and it feels great that I will never again get a call or letter

Community Leader,

Dabears

What changed in the past couple of days? There is no 30 days for them to validate.

Re: Collection on OLD debt: Request validation or notify of expired SOL/cease and desist?

DaBears — Sun, 04 Aug 2013 03:39:50 GMT

I have no idea what you're talking about Guiness

Re: Collection on OLD debt: Request validation or notify of expired SOL/cease and desist?

azguy13 — Sun, 04 Aug 2013 03:47:42 GMT

@Shogun wrote:
You have received some really good information. I will just reinterate some things. You have an alleged debt they say you owe. It's obviously old and in the hands of a CA. As RobertEG said, you should first send a DV, it's a powerful tool when used correctly. More than likely, you will not hear back from them once sent. But you must be careful, these old debts that have passed the SOL and CRTP tend to attract the "bottom feeders".

Hey Shogun, maybe the OP should send a FOAD letter when its all said and done.

Ive been waiting to use that

****edited for my spelling skills****

Re: Collection on OLD debt: Request validation or notify of expired SOL/cease and desist?

907grown — Sun, 04 Aug 2013 05:20:01 GMT

They must have done a mass mailing because I got one too! At the bottom it says LVNV( the first CA) cannot and will not sue you because it is out of SOL, it also states this cannot be reported on your CR. my first thought was DV too, but when I read that I thought maybe I should leave well enough alone... The OC was sears, debt from 1999 or 2000. It's been off my CR for years, I'm afraid to if I contact them or pay 10% somehow the collection will reappear... Thoughts?

Re: Collection on OLD debt: Request validation or notify of expired SOL/cease and desist?

Shogun — Sun, 04 Aug 2013 05:21:30 GMT

@azguy13 wrote:
@Shogun wrote:
You have received some really good information. I will just reinterate some things. You have an alleged debt they say you owe. It's obviously old and in the hands of a CA. As RobertEG said, you should first send a DV, it's a powerful tool when used correctly. More than likely, you will not hear back from them once sent. But you must be careful, these old debts that have passed the SOL and CRTP tend to attract the "bottom feeders".
Hey Shogun, maybe the OP should send a FOAD letter when its all said and done.

Ive been waiting to use that

****edited for my spelling skills****

LOL... yes,, and that's exactly who they're for.

Re: Collection on OLD debt: Request validation or notify of expired SOL/cease and desist?

Anonymous — Sun, 04 Aug 2013 14:51:06 GMT

I had to look up FOAD... Cute.

Unlike the letter of a previous poster, this one didn't say anything about not being able to sue due to SOL but I'm sure they're just hoping to find people who don't know their rights as there is absolutely no way this is within the SOL. Sounds like they're seriously fishing through old files. This one says he has 30 days to respond or they will consider the debt valid, but in doing a bit more research I have my doubts of the legality of that claim as well, this was not sent certified mail. They also didn't include their license number, which I'll be requesting in the validation letter.

We'll be sending out a validation letter next week and go from there. I came across a recommendation somewhere else to order certified mail receipts from the USPS site prior to sending so you can reference the tracking number in the body of the letter, will probably be doing that too.

Thanks for the responses, much appreciated.

Re: Collection on OLD debt: Request validation or notify of expired SOL/cease and desist?

Anonymous — Sun, 04 Aug 2013 14:56:45 GMT

@Anonymous wrote:
I had to look up FOAD... Cute.

Unlike the letter of a previous poster, this one didn't say anything about not being able to sue due to SOL but I'm sure they're just hoping to find people who don't know their rights as there is absolutely no way this is within the SOL. Sounds like they're seriously fishing through old files. This one says he has 30 days to respond or they will consider the debt valid, but in doing a bit more research I have my doubts of the legality of that claim as well, this was not sent certified mail. They also didn't include their license number, which I'll be requesting in the validation letter.

We'll be sending out a validation letter next week and go from there. I came across a recommendation somewhere else to order certified mail receipts from the USPS site prior to sending so you can reference the tracking number in the body of the letter, will probably be doing that too.

Thanks for the responses, much appreciated.

It is true that for a DV to be considered timely, you must send it within 30 days or the debt will be considered valid. Straight out of the FDCPA.

They do not have to include their license number, nor are they required to give it to you if you ask.

Yes, send your DV CMRRR for a paper trail.

Re: Collection on OLD debt: Request validation or notify of expired SOL/cease and desist?

Underconstruction — Sun, 04 Aug 2013 15:43:29 GMT

I wish there were a "like" button on these forums like facebook, but this will have to work! just what i was looking for! Thanks!

Re: Collection on OLD debt: Request validation or notify of expired SOL/cease and desist?

Anonymous — Sun, 04 Aug 2013 16:07:58 GMT

@nyankovic wrote:
They must have done a mass mailing because I got one too! At the bottom it says LVNV( the first CA) cannot and will not sue you because it is out of SOL, it also states this cannot be reported on your CR. my first thought was DV too, but when I read that I thought maybe I should leave well enough alone... The OC was sears, debt from 1999 or 2000. It's been off my CR for years, I'm afraid to if I contact them or pay 10% somehow the collection will reappear... Thoughts?

Once it is past the CRTP it cannot be reported again legally. If they did report it and knew it was beyond the CRTP they would be in trouble.

Re: Collection on OLD debt: Request validation or notify of expired SOL/cease and desist?

RobertEG — Sun, 04 Aug 2013 16:40:34 GMT

They could still report to a CRA. The FCRA does not prohbit a party from reporting information to a CRA based on expiration of a credit report exclusion period.

The prohibition is against the CRA including any reporting that has passed its CR exclusion period in any credit report they issue.

In some rare cases, there may not even be a CR exclusion period, as defined under FCRA 605(c), and thus any reporting could be included. A furnisher has no way of determining if a CR exclusion will apply to their information, and is not precluded from reporting based on that consideration.

When a debt collector reports to a CRA, they are required to provide the CRA with the DOFD on the OC account within 90 days after reporting.

Violation of the FCRA would occur if they provide an inaccurate DOFD in order to get their collection posted to the consumer's credit report.

Re: Collection on OLD debt: Request validation or notify of expired SOL/cease and desist?

Anonymous — Sun, 25 Aug 2013 01:42:36 GMT

Quick update: Per the advice I received here and by researching in the rest of the forums, I sent a fairly brief DV letter.

In the letter I did specifically request documentation from the original creditor including the first date of delinquency, documentation of the original principal balance with an itemized list of fees, interest charges and penalities, and the surety bond information for the collection agency as required by the state we live in (I realize it's likely they are not required to submit that last part but figured it couldn't hurt to include).

I mailed it certified return receipt last Saturday, they received it on Tuesday and my husband got a letter today stating they had closed the account and returned it to Cavalry. I'm guessing this means Cavalry will likely send it on to another agency at some point, but I feel like we at least now have some tools to deal with that when it happens. Thanks all for the advice/input.