Old Debt Question - Please Help

[Minks31]

Hello,

I am seaking some advice. I have an old debt from my first credit card through Bank Of America when I was a college student. This was back in 2004 I believe. BofA sold my debt to Midland Collections. They seem to show up as a open "account" with a balance and NOT an "collection" on my credit report (looking at Equifax right now).

Date Opended is 3/2008, Last activity is 7/2005, amount due is $2185. I am getting calls from Midland, and I would like to pay this off. I'll be able to pay the full amount in October (it's just what's best for me right now). Should I pay them something monthly and then pay it off in full in October? Or if I don't pay them anything will anything further negativly happen to my credit report? I believe if I pay them something now, even a small amount, will negativly effect my credit. Is that correct?

I know it's an old debt. Even though its not showing up as a collections account, could it then be sent to "collections" again and show up there? Is this account passed the Statute of Limitations (I Live in California)?

Any advice or help would be most appreciated.

Thanks,

Steve

[pizzadude]

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@Minks31 wrote:

Hello,

I am seaking some advice. I have an old debt from my first credit card through Bank Of America when I was a college student. This was back in 2004 I believe. BofA sold my debt to Midland Collections. They seem to show up as a open "account" with a balance and NOT an "collection" on my credit report (looking at Equifax right now).

Date Opended is 3/2008, Last activity is 7/2005, amount due is $2185. I am getting calls from Midland, and I would like to pay this off. I'll be able to pay the full amount in October (it's just what's best for me right now). Should I pay them something monthly and then pay it off in full in October? Or if I don't pay them anything will anything further negativly happen to my credit report? I believe if I pay them something now, even a small amount, will negativly effect my credit. Is that correct?

I know it's an old debt. Even though its not showing up as a collections account, could it then be sent to "collections" again and show up there? Is this account passed the Statute of Limitations (I Live in California)?

Any advice or help would be most appreciated.

Thanks,

Steve

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This collection ( or account ) is close to dropping off your credit reports ~ do you know what the DOFD was for the account ?   It should only show on your reports for 7.5 years from DOFD.   

A quick search via the interwebs indicates that SOL for credit cards is 4 years in Cali ~ take that in account with any settlement offer.   Midland is incorrectly reporting this as an OC account, it should be reported as a collection.   And after 7.5 years from DOFD it cannot reappear on your reports.

Also, I would negotiate a PFD with them, whereby the agree to delete any TLs from your report in exchange for payment.

[rckstrscott]

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@pizzadude wrote:

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@Minks31 wrote:

Hello,

I am seaking some advice. I have an old debt from my first credit card through Bank Of America when I was a college student. This was back in 2004 I believe. BofA sold my debt to Midland Collections. They seem to show up as a open "account" with a balance and NOT an "collection" on my credit report (looking at Equifax right now).

Date Opended is 3/2008, Last activity is 7/2005, amount due is $2185. I am getting calls from Midland, and I would like to pay this off. I'll be able to pay the full amount in October (it's just what's best for me right now). Should I pay them something monthly and then pay it off in full in October? Or if I don't pay them anything will anything further negativly happen to my credit report? I believe if I pay them something now, even a small amount, will negativly effect my credit. Is that correct?

I know it's an old debt. Even though its not showing up as a collections account, could it then be sent to "collections" again and show up there? Is this account passed the Statute of Limitations (I Live in California)?

Any advice or help would be most appreciated.

Thanks,

Steve

---

This collection ( or account ) is close to dropping off your credit reports ~ do you know what the DOFD was for the account ?   It should only show on your reports for 7.5 years from DOFD.   

A quick search via the interwebs indicates that SOL for credit cards is 4 years in Cali ~ take that in account with any settlement offer.   Midland is incorrectly reporting this as an OC account, it should be reported as a collection.   And after 7.5 years from DOFD it cannot reappear on your reports.

Also, I would negotiate a PFD with them, whereby the agree to delete any TLs from your report in exchange for payment.

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+1 -- Lets just say the DOLA is similar to the DOFD... You are right on the cusp of it being gone anyway..

I would offer a small percentage PFD.. something like, 20 percent maybe..

Making a payment will not hurt your credit at this point if they don't agree to PFD, and giving them something (to agree as having it settled in full) will stop them from selling it and being hassled by further junk debt buyers... just because it isn't showing and the SOL expired doesn't mean the debt goes away, you still owe it.. but you have a lot of leverage with midland..

scott

[Minks31]

Thanks for the reply!

From what I can tell the DOFD 7/2005. The report I'm looking at on MyFico for EX is not going back passed 2006 (For the payment history). If that's the case, July of this year would be the 7 year point, and the end of the year would be the 7.5 year point. I'm just confused what happens if there is still a balance? Does the balance fall off your credit report too? Or is it only if its paid in full?

I will try to negotiate a PFD as well. But it seems like it's in my best interest to just wait until the end of the year?

[Minks31]

Thanks Scott.

I will talk with them and see what I can do. Also, can you let me know a little bit more of the leverage I have? You say offer 20%, that's a low amount? Why would they take that, is it because they know its about to fall off my CR as well?

[rckstrscott]

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@Minks31 wrote:

Thanks Scott.

I will talk with them and see what I can do. Also, can you let me know a little bit more of the leverage I have? You say offer 20%, that's a low amount? Why would they take that, is it because they know its about to fall off my CR as well?

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The leverage is simple: they cannot compel you through legal means to force you to pay (ie a lawsuit)

If they cannot force you to pay, by December of this year, there is no damage from a credit standpoint, and there is nothing from a legal standpoint..

Once 7.5 years hit, this account is a ghost. It doesn't mean its 'gone' it just shouldn't display on your credit reports.. Once the SOL of 4 year hit in Cali, they could no longer sue you for the money, so there is no risk of judgment.

They cannot do ANYTHING except sell it to someone else, who will then try to haggle or pester you into paying.. but after 7.5 years of the original DOFD, no one can report this debt, not even a new collection company..

You are in the drivers seat.. I would offer a small amount however, just to legally have this debt settled so you wont deal with phone calls for the next 5-10 years from other JDBs

-scott

[Minks31]

Thanks a lot. Very helpful. I will contact them and hopefully I can get this handled and sqaured away.

[rckstrscott]

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@Minks31 wrote:

Thanks a lot. Very helpful. I will contact them and hopefully I can get this handled and sqaured away.

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I would write the PFD offer in letter form, just so you dont feel pressured to agree to something, and you will have it in writing.. they are pretty irritating to deal with

-scott

[Minks31]

I was thinking of doing it in writing anyway. Thanks. I'm guessing even if they don't agree to the PFD, but agree to settle it, it'll be ok since I'm close to the 7-7.5 year point?

[rckstrscott]

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@Minks31 wrote:

I was thinking of doing it in writing anyway. Thanks. I'm guessing even if they don't agree to the PFD, but agree to settle it, it'll be ok since I'm close to the 7-7.5 year point?

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Settling should do nothing one way or another for your score.. collection accounts start factoring the second they hit your report, and there is no status that changes their impact... paid, settled, settled less, settled full.. it counts the same.. that is why everyone encourages PFD

Since it is falling off soon, it really doesn't matter what you settle for as long as it is legally listed as settled and $0 balance.. that way the debt can't haunt you after the impact is done..

My guess is they will do a low balance PFD.. they have nothing to lose cept money and nothing to gain at all from denying

-scott