Question about Statute of limitations

[germese1975]

I have a Midland account listed on my CR from WEBBANK. From what I've figured out, this is a Bill Me Later account that is not mine in the first place. I've never had a Bill Me Later account. There is not an OC entry on my CR listing WEBBANK, which I understand is normal for them. But that is beside the point right now.

On my CR, it lists a DOFD as June 2009. That means this debt is 4 years old since it was last paid, if it was ever paid to begin with. I was living in NC at the time this alleged debt went delinquent. The Terms and Conditions for Bill Me Later clearly states this is an open-ended account. The SOL in NC is 3 years for an open-ended account. I currently live in GA, where the SOL for open-ended account is 4 years. I know GA recognizes credit cards as a written contract, which has a SOL of 6 years.

In either state, the SOL for an open-ended account has expired. Since Midland can no longer legally collect on it, can I avoid the whole process of fighting with Midland, or can I simply send them a cease and desist and have the CRA remove their entry?

[InvincibleSummer3]

Statute of limitations refers to how long you can be sued for a debt. It varies by state, as you know. But it's different than the credit reporting time period (CTRP) which is the amount of time a tradeline can be reported. CTRP is seven years (plus up to 180 days) in all states.

You don't have to fight with Midland (although if this truly isn't your account I can't imagine why you wouldn't want to say something), but it's not old enough to age off yet.

[DaBears]

if you feel the account is not your and might be possible fraud. I would suggest filling out the FTC fraud affidavit form http://www.ftc.gov/bcp/edu/resources/forms/affidavit.pdf then getting a police report. Submit the information to all 3 CRA's. They will block the trade line from viewing until the investigation is done. 

DaBears

[germese1975]

I understand now. I absolutely will fight them to clear my credit report. I was just hoping it would be as easy as telling them to cease collection activity on me and clear my CR since they are a collection agency no longer allowed to collect on a debt by SOL. I will try the FTC and fraud report route to get it off. I'm learning about all these different processes as I go. Thank you both for your information and insight.

[DaBears]

Anytime germese1975!!!! Keep us posted.

[germese1975]

DaBears....I sure will! I started this journey 29 April, 2013 with an EQ FAKO of 564. Today, I'm sitting at an EQ FICO of 656! I didn't pull a FICO in April because I hadn't found this site yet... From what I can tell, EQ FAKO and EQ FICO are usually pretty close to each other. I'll let you know how this ordeal with Midland turns out. From everything I've read, they are usually pretty simple once you fight them.

[RobertEG]

There is no provision for requiring a debt collector to cease collection on a debt other than sending a timely DV, which only requires them to cease collection until such time as they have verified the debt.

If more than 30 days has expired since their dunning notice, then a DV would be untimely, and thus would not provide a temporary cease collection bar.

What a consumer can send is a cease communication letter under FDCPA 805(c), which only extends to communications with you.  That is not a cease collection bar.

If the debt is considered to have never been authorized by you, you can at least deal with the credit reporting issue by filing a police report, asserting that you never authorized the accoun/debt, and thus any assertion of debt must have resulted from identity theft.  By sending that police report to the CRA, it will immediately block any reporting of information related to the asserted identity theft information from your credit report.  You can also send a copy of the police report to the OC, and require them to provide you with all business records pertaining to the account.  That will enable you to obtain evidence necessary to fight the alleged debt.

Until the legitimacy of the debt is finally determined, you will always have a creditor/debt collector out there asserting an unpaid, delinquent debt.  Exclusion or blocking of the collection from your credit report will not resolve that issue, so it is still worth pursuing, and establishing its illegitimacy.  Thereafter, you can state, if asked, that you have no unpaid delinquent debt.