What would you do with this CA?

[liesierre]

I'm not quite sure what to do with this one yet... PFD for partial amount or just let it age off in September 2015?

I'm in california, so I think the SOL is 4 years.

What would you do with this one if it were your last baddie?

If I did a PFD, how much do you think I should offer on this?
Technically I could pay something (I have some savings already), but it would be taking money from my saving for a down payment so if possible I'd like to keep it under/around $1000. This might be a case of a sleeping giant?

GREATER CALIFORNIA FINAN   #8101****

PO BOX 3470

PASO ROBLES, CA 93447-3470

(805) 237-2040 

Placed for collection: 06/11/2010

Responsibility: Individual Account

Account Type: Open Account

Loan Type: COLLECTION AGENCY/ATTORNEY

Balance: $5,443

Date Updated: 08/07/2010

Last Payment Made: 06/15/2008 

Original Amount: $2,079

Original Creditor:CASHCALL INC (Financial)

Past Due: $5,443

Pay StatusIn Collection<

Remarks: >PLACED FOR COLLECTION<

Estimated month and year that this item will be removed: 06/2015

[liesierre]

Maybe I should DV this one? I'm pretty sure its been transferred to several CA's over the years. 

The original loan amount was somewhere around $2100 in the first place, but I suppose they hit me with the whammy of like 90% interest rate. It was a really stupid move to get the loan in the first place but I was desperately trying to keep my condo at the time and made a dumb mistake.

It was paid/auto deducted from my account for years ($216/mo) until they closed my bank account due to inactivity when I was unemployed. So really, the "balance" is ludicrous in the first place since it appears to have never moved/gone down... and then to charge me over twice the amount as the "outstanding balance" is *really* insane.

What would you do?

[RobertEG]

Their collection goes back a couple of years, so I presume they sent prior dunning notice shortyly after reporting?

If so, any DV at this point would be untimely, and thus invoke no cease collection bar.  You can still request verification, but it will not impose any collection restriction on them if untmely.

What is the DOFD on the OC account?  If scheduled for CR exclusion in 9/2015, that implies a DOFD of sometime in early 2008.

That DOFD will most likely also be the date for calculating expiration of SOL, provided your state statute has no reset provision that applies to your subsequent acts.

It may well be outside SOL, but I would confirm that.  Credit report exclusion is based only on DOFD, with no reset provisions, so any negotiations you enter into will not affect the CR exclusion date.

You can certainly offer a PFD at any amount, but a request both for CR deletion and acceptance of less than the full amount is requesting a double concession on their part.

[liesierre]

yes, they sent prior dunning notices

the DoFD is 07/2008

[liesierre]

so basically you're saying that unless I want to PIF, I should probably just let it age off in June 2015?

[Anonymous]

It wouldn't even cross my mind to PIF. If you can afford to PIF, then offer a PFD. If I could afford to PIF, then I would offer a PFD and low ball them. So offer like 30% via certified funds within 5 business days of their acceptance in exchange for them deleting the account and waiving any further liability for the debt. Make sure they tell you, in writing, they will delete it and consider it PAID IN FULL. It could be appealing to them, after carrying the debt for a couple of years, to suddenly get a nice chunk of change and be done with you. But again, I wouldn't even try talking to them unless I could afford it.

In this case, you went to a loan shark and I really don't have any qualms with them losing money. Also, in your original post you said they probably charged you 90% interest. You would be lucky if they only charged you that. I've heard it is more in the 150% area.

[liesierre]

I'm inclined to just wait for it to drop off because they have already taken more than enough money from me and I *definitely* at least paid back the loan over the course of the period they were charging me monthly. I know it was a dumb mistake to even do it in the first place but I was desperate at the time. I definitely regret it.

The only thing is, I want to try to buy a house in the next year or 2... which is the *only* reason I'm considering PFDing it instead of just waiting for it to drop off.

Technically I have the money to pay it, but I mean... I'm trying to weigh what will be most beneficial for me as far as the house goes. If I leave it, I would possibly have to wait until July 2015 to buy a house (unless my scores can get over 720 with it still on there as my only baddie), which is about 8 months longer than I was targeting...

On the other hand... if I pay it, thats money taken from my down payment fund...

So basically I'm weighing my options....

If I can get my scores to vastly improve enough to get a loan with a really good interest rate with it still on there...I could keep the money for the down payment

if I can't I'll either have to put off my timeline by nearly a year to wait for it to drop off.... or I'll have to pay it and take money out of my down payment fund...

[liesierre]

30% of the original balance (not the insane "outstanding balance") is only like $650... I could pay that without taking too much of a hit.