Date SOL would commence for Discover

[Anonymous]

My friend is still working with Discover on a credit card debt where his last payment to Discover was 6/25/2014.  He utilized a debt repair company National Debt Relief on 9/2014 where he made monthly payments to N.D.R. and they would negotiate on his behalf.  He decided that he could do this himself toward the end of 2015 and N.D.R. cleared his account with a lump sum payment on 12/2015 to Discover C.C. for $3,325.00, bringing the balance down to $5,707.00.  That was not my friends intention as it just brought the balance down, it didn't settle the account.  He asked me if the SOL would commence on 6/25/2014 or would it be 12/2015 since that was considered a payment even though the account was charged off on 12/15.

This is in Iowa where they consider partial payments after charge offs are not enough to restart the SOL clock, but not sure how Iowa does it when a 3rd party makes the payment.  Has anyone on MYFICO had any experience in this scenario?  Discover still has the account and want to settle for 80% of $5,707.00.  Thank you.     

[gdale6]

It would depend on the SOL laws in the state he is living in and possibly the laws of the state the creditor is incorporated in if they are longer. In some state making any payment updates date SOL ticks from in others it doesnt matter.

[Anonymous]

Iowa Code 614.11 – Admission in writing — new promise.

 Causes of action founded on contract are revived by an admission in writing, signed by the party to be charged, that the debt is unpaid, or by a like new promise to pay the same.

This was found by a member on another site.  I need to find out if he signed anything with National Debt Relief.  Discover is showing it as payments on statements they sent him so in their eyes the SOL is probably 12/2015. 

[Anonymous]

Received Right to Cure November 14th, 2018 from Gurstel Law Firm for their client Discover.  They have until July 9th to file a petition for the 5 year SOL in Iowa.  We feel that since Delaware is their choice of law state that there would be a little better chance of getting Delaware's 3 year SOL through an arbitrator.  The amount they are going to sue for is under $6,500.00 which is the threshold for being considered small claims court.  The Discover Card member agreement states that Discover doesn't have to choose arbitration in small claims court.  So it's an easy decision to go forward with initiating AAA Arbitration now before they file in small claims.  That way a MTC Arbitration can be filed in answer once Discover files along with proof of initiating arbitration.  They will pay for the fees if no monies is available if asked in writing according to card member agreement.  Knowing how aggressive Discover is an OC, a settlement for a smaller amount is the end goal.  They are at 80% right now, even though they know there are no assets at this time to attach to and no wages to garnish.   

Questions:

Are there any problems with doing the above this way?    

Can that request for Discover to pay fee be mailed with Discover's copy of the arbitration agreement?