Charge Off Question

[MrTom]

Its my understanding legal action depends on your states SOL.

Im in Minnesota whick is 6 years from last activity, knowledge or promice to pay.

I had a CO ready to fall off last July, July 2016.  Seeing I made a payment in August 2013, the TL could still fall off in 2016.  But if I did not pay (I settled for less btw) I could still be sued until Aug 2019.

Know after the SOL someone can still and try and collect forever, they just can no longer report it or sue you for it..unless you say you know the debt is yours then that SOL clock restarts.

[WayUpto850]

Just spoke with a Consumer Protection Atty and he advised:

Even though the SOL for legal action has expired, any payment on the account will reset the SOL for legal action.

[medicgrrl]

It sounds like you are confusing a settlement with a partial payment.  If a collection agency agrees to "settle for less" and you pay the amount of the settlement, then it is now considered paid off and "settled for less"  When requesting a settlement, always get the agreed upon terms in writing.  How much you both agree to, how long you have to pay etc.  

If you contact a CA or creditor and offer a payment arrangement, for example, make your first payment or two and then decide not to complete the terms of the payment arrangement, this could cause the SOL to be extended, so to speak.  But it still does not change the date of removal by the CRA's.

[WayUpto850]

I totally agree Medicgrrl - this whole thing can be very overwhelming and confusing.  I am shaking in my house slippers as I prepare to approach the "dragon's den"...

I called the number the bank provided on today I believe the said they were "Track America".  The person answering the call located the file in question using the last four digits of my SSN#.  Then she advised that the account had been turned over to a debt collector or attorney - however, the debt collector/atty had "moved out of the area" and the account was returned to them.

She stated she could not discuss the account with me and that I needed to wait 5 business days for the account to be reassigned to a debt collector or atty (I'm hearing the roar of the dragon's breath already  ).

She asked for my phone # - I know they all have caller ID - I refused to provide that info and stated, I disagree with the information on my credit report - regardless I would like to know what are my options to resolve this matter.  I told her I will call back in 5 business days to get the contact info for the debt collector or atty that is re-assigned to the account.

Forum: Any advice on how to negotiate a settlement with the dragon w/o retriggering SOL is appreciated.  So far I have:

1. Do not agree to the debt - advice on how to do this appreciated.

2. When offerring less, get it in writing - How do I get it in writing BEFORE I make a payment if they say you need to pay right now in order for this offer to be effective - no time to email settlement agreement and sign it and return it?  Do I pass on that deal?

Seems I have already retriggered collection activities - which is something my credit counselor warned may happen.  If I understand correctly, since the SOL for legal action expired in 2015, then even if the new debt collector or atty filed a lawsuit I have a defense (expired SOL).

Feeling the "heat" from the fire breathing dragon's breath....

[WayUpto850]

Dragon's Den ==>  Trak America  - a collection agencies that has a network of attorneys.

http://www.trakamerica.com/

Just a Thought:  If they try to sue me, I read that besides using the SOL as a defense, I can also counter sue because it is illegal to file a lawsuit on an account that has past the SOL - got my Consumer Protection Atty on "speed dial" - moving closer to the door of the dragon's den.

[RobertEG]

Some states have provisions that make it a violation to bring legal action on a debt where the SOL has knowingly expired, while others do not.

It depends.

Additionally, Federal case law in certain jurisdictions also has held that if a debt collector brings civil action on a knowingly expired SOL, that is considered a violation of the FDCPA, but again, that is not statutory law, and varies by jurisdictional case law.  It is up to a judge to make that interpretation.

Another complication regarding expiration of SOL is that since only a judge can legally determine when or if an SOL has actually expired, bringing legal action after expiration of SOL may not have been intentional or knowing on part of the debt owner..

Some state SOL statutes often require an interpretation of when or if the facts of the individual case apply, and when or if there is any reset provision,, borrowing provision from another state's SOL statute, stay of the running of an SOL period due to non-residency, etc., etc.

Expiration of SOL is not always black or white, and thus holding a party to having knowingly initiated a legal proceeding "after expiration of SOL" will often require an initial determination by the court of factual expiration of SOL and of showing that the party's contention that SOL had not expired was knowingly incorrect.

I would consult an attorney before asserting violation of statutory or case law by having initiated a civil action "after expiration of SOL."

[WayUpto850]

ITA RobertEG - when entering the Dragon's Den a good Consumer Protection Atty is essential.  Otherwise, Its so easy to get burned by the flames.

[WayUpto850]

Waiting to approach the Dragon's Den on Monday or Tuesday.....has anyone had any dealings with Trak America? Any tips for negotiating a sucessful settlement agreement with their network attorneys or debt collectors?

[WayUpto850]

Hello My FICO members,

Its been a minute since I posted on this issue.  After contacting Trak America, an attorney was assigned to my account.  I was terrified!! I bravely sent a request for debt validation letter to them - which included a request to know what is the statute of limitation for my account.

I never got a response.  So, I panicked and hired Lexington - I hear the moans and groans.  In all fairness, Lexington suggested I contact the Debt Collector Attorney and make them a direct offer.  However, I was still too afraid, So Lexington Law took on my account. 

I waited hoping the attorney would send me a settlement offer letter. Months passed no further contact from the debt collector attorney.

I am nearing the date for my next major surgery and I need to move to a ground level rental unit - but my credit score is stuck at 633.  So, I womaned up and entered the "dragon's den" and this is what I found:

LOL!!!!!!  The debt collector attorney was really a nice guy.  He told me he sent my account back to the credit card company because it was past the statute of limitations!!  He advised me that  even though he believes I still owe the debt, they will not be sueing me!!!!

He offered to request the account be returned to him so he could negotiate my settlement offer.  He also advised there would be an impact to my taxes should a settlement for less than what they say I owe be reached.  He said the entire process will take about 2 weeks.

I am eager to get this off my account sooner if possible,  I declined his offer to recall the account - so I can try to negotiate the settlement directly with the credit card company.  After calling the credit card company, they referred me back to Trak America..... uggghhhh!!!!

So, I tried calling the Debt Collector Attorney again to see if he could the recall account - but he was not available. 

Any advice on how I can get this matter resolved before two weeks?

P.S.: Lexington got this account removed from my TU account (WooooHoooo!!!).  I called EQ and the operator would not give me an early exclusion but stated I could contact the credit card company (or maybe the Debt Collector?) and request a "Notification of Removal" be sent to Credit Bureau - then EQ would remove it in a few days.  EX has been the toughest - they last nformed me they would consider an early exclusion if I called in NOV 2017.

Thx for time regarding this matter.