topic Re: Collection question in Rebuilding Your Credit

Collection question

Anonymous — Mon, 04 Jan 2016 16:21:18 GMT

Hey Gang

I had a collection letter show up out of the blue today from a company called "2nd round sub". The original debt is over 7 years old for $351.60 and they are offering to settle for $52.74. This is not on any of my reports. I would just pay it but there is a paragraph in the letter that states: the legal sol for suing you to collect this debt has expired. However, you may choose to make payments. If you make a payment, the creditors right to sue you for the entire debt may start again. Thoughts?

Thanks
Brian

Re: Collection question

Anonymous — Mon, 04 Jan 2016 16:38:09 GMT

Don't pay it. They are allowed to continue to send letters to you, but they can't sue you for the debt. If it showed up on a credit report, it would be worth paying just to get rid of it, but after seven years, they can't even report it to a credit bureau. You could always save a copy for reference if they continue to send things, but they have no power to collect.

Re: Collection question

AutoBot — Mon, 04 Jan 2016 16:39:08 GMT

If its not on your credit reports and clearly beyond past statute of limitations, I would probably just ignore it for now.

Re: Collection question

Anonymous — Mon, 04 Jan 2016 18:10:22 GMT

@Anonymous wrote:
Hey Gang

I had a collection letter show up out of the blue today from a company called "2nd round sub". The original debt is over 7 years old for $351.60 and they are offering to settle for $52.74. This is not on any of my reports. I would just pay it but there is a paragraph in the letter that states: the legal sol for suing you to collect this debt has expired. However, you may choose to make payments. If you make a payment, the creditors right to sue you for the entire debt may start again. Thoughts?

Thanks
Brian

Send them a DV, and if they validate it, then just send them a cease communications letter. I would not pay something that old.

Re: Collection question

RobertEG — Mon, 04 Jan 2016 19:05:44 GMT

It depends upon whether you wish to clear your history of any unpaid debt.

Nether expiration of SOL nor credit report exclusion discharges the debt.

It is possible, when applying for future credit, that you will be asked to disclose any unpaid, delinquent debt, and a prospective creditor may still require its payment as a pre-condition for any approval of new credit. That is particularly true of mortgage loans.

Your call.