topic Re: help to not unintentionally restart SOL on old debt in Rebuilding Your Credit

help to not unintentionally restart SOL on old debt

Anonymous — Tue, 26 Mar 2019 00:15:42 GMT

I have an account due to fall off my credit report in less than a year. The SOL is up on it so the OC cant come after me for the balance. I have no idea if I paid it or not. Its old and it was a chaotic account. I was finally able to get an email through to an executive with the help of another community member here. I got a reply back that he would call me Wednesday when he is back in the office. I dont want to restart the SOL on this debt by accident. How can I go about handling this call if/when he calls me?

Thanks!

Re: help to not unintentionally restart SOL on old debt

Caardvark — Tue, 26 Mar 2019 10:23:48 GMT

Simply state that "you are not acknowledging the debt." You are simply inquiring about the status and/or willing to make a payment in exchange for a PFD in order to make it go away.

Re: help to not unintentionally restart SOL on old debt

Anonymous — Tue, 26 Mar 2019 19:32:13 GMT

@Caardvark wrote:
Simply state that "you are not acknowledging the debt." You are simply inquiring about the status and/or willing to make a payment in exchange for a PFD in order to make it go away.

I know what the status is (charge off) and I am not looking for a PFD. I am hoping they will remove it from my credit report early as it is due to fall off in January 2020. I have never spoken to an executive at a company for something like this so was hoping to get some insight as to what I should or shouldnt say from someone who has done this already.

Re: help to not unintentionally restart SOL on old debt

Caardvark — Tue, 26 Mar 2019 20:36:01 GMT

So... you are seeking a "PFD" without the "P."

Unfortunately, I can't offer much guidance here. You are asking them to remove the debt from your credit report but there's nothing in it for them. It seems like a longshot to me but I suspect stranger things have happened. PFD's are mutually beneficial. The OC or CA gets some money and the requestor gets the tradeline removed. Again, in this scenario the OC or CA would get nothing. I can't imagine why they'd agree to it.

Re: help to not unintentionally restart SOL on old debt

RobertEG — Tue, 26 Mar 2019 20:41:04 GMT

Possible reset of your state statute of limitations on the period for initiating civil action seeking a judgment varies individually under the provisions of each state's SOL.

Some states provide for a firm agreement to pay as being sufficient, while others requires a written agreement to pay or an actual payment of some amount. You must check your state SOL provisions for details.

Be certain, in any discussions, not to actually admit the legitimacy of the debt or make any firm offers to pay or any partial payments, and you should be OK regarding any potential reset of SOL for bringing civil action.

If, by reset of SOL, you are referring to the credit report exclusion date of derogs reported on the OC account, there is no reset of the exclusion date for monthly delinquencies, charge-offs, or collections. Each is based on the date of your intial delinquency, and is not reset based on any other factors, including payment or non-payment of the debt.

Stated differently, negotiations on terms of potential payment will not reset the credit report exclusion date for such derogs.

Re: help to not unintentionally restart SOL on old debt

Anonymous — Wed, 27 Mar 2019 01:44:02 GMT

@Caardvark wrote:
So... you are seeking a "PFD" without the "P."

Unfortunately, I can't offer much guidance here. You are asking them to remove the debt from your credit report but there's nothing in it for them. It seems like a longshot to me but I suspect stranger things have happened. PFD's are mutually beneficial. The OC or CA gets some money and the requestor gets the tradeline removed. Again, in this scenario the OC or CA would get nothing. I can't imagine why they'd agree to it.

You are correct in that they have nothing gained from removing the charge off, but its going to be removed anyway in 8 months. My request is purely an effort to get it removed early since its too early for EE. I can't get it removed from the CRAs and the OC office has ignored every letter I've sent them since day one. It's more of a last ditch effort to get it removed before we apply for a mortgage. This way the only negative will be one active collection from 3 years ago that we havent been able to settle or save enough up to pay. The less negatives on my report ( all are paid except the one active collection) would be helpful.

Re: help to not unintentionally restart SOL on old debt

Caardvark — Wed, 27 Mar 2019 02:00:04 GMT

Oh... I get it. I simply don't believe they'll bite. It would defy all logic.

Best of luck!

Re: help to not unintentionally restart SOL on old debt

Anonymous — Wed, 27 Mar 2019 02:02:55 GMT

@RobertEG wrote:
Possible reset of your state statute of limitations on the period for initiating civil action seeking a judgment varies individually under the provisions of each state's SOL.
Some states provide for a firm agreement to pay as being sufficient, while others requires a written agreement to pay or an actual payment of some amount. You must check your state SOL provisions for details.
Be certain, in any discussions, not to actually admit the legitimacy of the debt or make any firm offers to pay or any partial payments, and you should be OK regarding any potential reset of SOL for bringing civil action.

If, by reset of SOL, you are referring to the credit report exclusion date of derogs reported on the OC account, there is no reset of the exclusion date for monthly delinquencies, charge-offs, or collections. Each is based on the date of your intial delinquency, and is not reset based on any other factors, including payment or non-payment of the debt.
Stated differently, negotiations on terms of potential payment will not reset the credit report exclusion date for such derogs.

This is where it says my state allows up to 6 years to place action against me for my debt. There was no court order so section 893.40 does not apply. It also was not a car insurance thing so sub. 2 does not apply either.

893.43 Action on contract.

(1) Except as provided in sub. (2), an action upon any contract, obligation, or liability, express or implied, including an action to recover fees for professional services, except those mentioned in s. 893.40, shall be commenced within 6 years after the cause of action accrues or be barred. (893.40 Action on judgment or decree; court of record. Except as provided in ss. 846.04 (2) and (3) and 893.415, action upon a judgment or decree of a court of record of any state or of the United States shall be commenced within 20 years after the judgment or decree is entered or be barred.)

(2) An action upon a motor vehicle insurance policy described in s. 632.32 (1) shall be commenced within 3 years after the cause of action accrues or be barred. A cause of action involving underinsured motorist coverage, as defined in s. 632.32 (2) (d), or uninsured motorist coverage, as defined in s. 632.32 (2) (f), accrues on the date there is final resolution of the underlying cause of action by the injured party against the tortfeasor.

Any chance you can put these into lamest terms for my brain? I believe this is where it discusses admitting ownership of the debt. Does this mean if I did admit ownership of said debt it would NOT be enough to restart SOL? I added the two sections below the first one because it discussed some items I thought applied here as well. Just want to cover my bases.

893.45 Acknowledgment or new promise. No acknowledgment or promise shall be sufficient evidence of a new or continuing contract, whereby to take the cause out of the operation of this chapter, unless the same be contained in some writing signed by the party to be charged thereby.

History: 1979 c. 323.

Judicial Council Committee's Note, 1979: This section is previous s. 893.42 renumbered for more logical placement in restructured ch. 893. [Bill 326-A]

893.46 Acknowledgment, who not bound by. If there are 2 or more joint contractors or joint personal representatives of any contractor, no such joint contractor or joint personal representative shall lose the benefit of this chapter so as to be chargeable by reason only of any acknowledgment or promise made by any other of them.

History: 1979 c. 323; 2001 a. 102.

Judicial Council Committee's Note, 1979: This section is previous s. 893.43 renumbered for more logical placement in restructured ch. 893. [Bill 326-A]

893.47 Actions against parties jointly liable. In actions commenced against 2 or more joint contractors or joint personal representatives of any contractors, if it shall appear, on the trial or otherwise, that the plaintiff is barred by this chapter as to one or more of the defendants but is entitled to recover against any other or others of them by virtue of a new acknowledgment or promise or otherwise, judgment shall be given for the plaintiff as to any of the defendants against whom the plaintiff is entitled to recover and for the other defendant or defendants against the plaintiff.

Re: help to not unintentionally restart SOL on old debt

Anonymous — Wed, 27 Mar 2019 02:05:11 GMT

@Caardvark wrote:
Oh... I get it. I simply don't believe they'll bite. It would defy all logic.

Best of luck!

Its a good possibility they may not, but at least I can say I tried it all. You only fail if you never try, right? lol Thanks for the luck. I will need it.

Re: help to not unintentionally restart SOL on old debt

gdale6 — Wed, 27 Mar 2019 16:59:44 GMT

Are you not aware you are going to be required to payoff all debts except medical before you can close and once you have mortgage pulls there isnt going to be any settling for less, they are going to want it all so even if you get it removed now its coming right back on once they are notified of the pulls. You need to settle all your debts prior to the mortgage pulls. Even if they have gone past CRTP they still have to be disclosed on a mortgate app unless they have been discharged in a bankruptcy preceeding.

To answer your question though and as stated by others each state has laws on SOL and what can reset them so you will need to refer to such statutes not only in your state but also in the state the creditor is incorporated in.

Re: help to not unintentionally restart SOL on old debt

Anonymous — Wed, 27 Mar 2019 17:45:32 GMT

I'm aware. And I already posted the laws for my state. I'm not asking for an unpaid collection to be removed. This account hasnt been updated since 2013. Also, the one collection I do have wont settle anyway. We already know we need to pay in full since they wont take less. Been trying for 2 years.