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Expired statue of limitations

Ms_neenee
New Member

Expired statue of limitations

Hi, I'm trying to get approved for a mortgage, and the lender says I have to take care of my charge off accounts before they can approve me. Well, I called the bank reporting the balance, and they forwarded me to a collection agency. When I called the collection agency, the rep said my account had just been archived a few days prior due to it being out of statute of limitations. I asked what this meant but he didn't want to explain, but said he'd get his super to see if they can reinstate it so they can get details on the account. I kept asking why they would have to do that, that I would just contact the original lender to find out what's going on. But they'd already emailed the back office by that point. I told them I don't want that to be done to negatively affect my credit but he couldn't promise me anything, but kept saying if I feel there needs to be a dispute that they'd have to reinstate it anyway.

My question is, is there anything I can do to get it removed before asking for a settlement? I'm in New York State. I don't want to wait for it to fall off as I'm really trying to get into a home. Any advice would be appreciated.
Message 1 of 6
5 REPLIES 5
Jnbmom
Community Leader
Super Contributor

Re: Expired statue of limitations

SOL is just the time frame where they can  legally collect via  obtaining a judgement, it will still remain on your reports for 7 years from the date of your last activity. Since they can't legally collect they will probably be willing to settle on amount and you can possibly PFD.

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Message 2 of 6
Ms_neenee
New Member

Re: Expired statue of limitations

If I tried the PFD option, how would that work if it's the bank showing up on my credit karma reports and not the collection agency? Would I have to contact the bank as well?
Message 3 of 6
ImTheDevil
Super Contributor

Re: Expired statue of limitations

What is the DoFD for the accounts? In NY the Purge Law means that they’ll drop after 5 years instead of 7.
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Message 4 of 6
Ms_neenee
New Member

Re: Expired statue of limitations

I'm not sure honestly. All I can remember is I defaulted some time in 2012, was able to make payments and catch up, then in 2013 I did a voluntary repossession on the car some time between April- June. How can I find out? On the report it shows nothing reported since 2010 when it was first opened, until October 2017 to now it shows charge offs each month. It shows 30 day late in May of 2013, and 120 late in June of 2013. I hope by me calling them that I have not reaged this. Can that happen?
Message 5 of 6
RobertEG
Legendary Contributor

Re: Expired statue of limitations

New York State enacted enhanced debt collection practices regulations in 2014, codified at 23 NYCRR Part 1, which imposes restrictions on debt collectors not imposed under the federal FDCPA if the SOL has expired.

As a result, they may wish to avoid any issues of compliance in NYS by discontinuance of further communications that would have to acknowledge expiration of SOL.

 

Deletion of their reported collection is not required under the FDCPA or the new NYS regs.

You would need to show that, in addition to suspending collection activities, the owner also terminated their assignment of collection authority to the assigned debt collection.

 

Since it has apparently been five years since DOFD, my advice would be to pay the debt,and then use the NYS shortened exclusion provision of 5 years for exclusion of a paid collection.

CRA policy would then mandate deletion of the collection if the debt collector has their collection authority terminated with the debt remaining unpaid.  There is no clear evidence of any such termination, so I see no basis for requiring deletion of the collection.

Message 6 of 6
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