Today I decide to go open a new checking account at a credit union, to get away from BOA. Unfortunately, the new CU merged with an old CU, where I had an auto loan that got repossessed in the 90's. There is a balance that was charged off. They won't let me open a checking account unless I set up direct deposit and a payment arrangement. Well, I said I was not comfortable with depositing my whole paycheck there, which they understood. So, we agreed on a savings account, direct deposit agreed upon amount of payment, have the small payment taken out every month.
Since I had to make a $5.00 deposit to open the account, and had no cash, I left to go get some from BOA. But upon thinking for a second, thought that if I made a payment it would reset the SOL. I don't mind paying them off, but will not have the cash to PIF. I am NOT however, willing to get sued. At the time of the charge off, I was on disability and my checks were not garnishable. Now I am retired, and they are.
They would probably agree to put in writing that as long as I continue making payments they will not try to sue me, but not sure that I would even trust that.
This CU handles their own mortgages in-house and they do not sell them. I ultimately want to get a mortgage from them.
IMO, any chance to pay off old debts the better. YMMV on your state's laws as to whether a payment resets SOL. If you opt for payments then don't stop until paid.
I agree with you llecs. I want to pay it off, I just don't want to get sued in the interim when I have an almost clean credit report. Although I guess a clean CR means nothing if you already defaulted on a loan at the place you want the mortgage from. (and rightfully so) ;o)