When Not To Pay Credit Cards???

[WillyW]

Okay... I orginally got my credit cards in California and made some purchases but believe those were paid off.. I moved to Arizona for a couple years... Due to bad times I didn't pay my credit cards.. From doing about 4 hours of research, and still confused.. I see that the statue of limitations of CA and AZ is 4 years on Open Ended accounts which is supposedly Credit Cards... I was late on my cards between July to September of 1998. So they had to of CHARGED OFF THE CARD at the most 210 days... so lets say September 1998 + 7 months until Chargeoff equals = May 1999. Right??? So 4 years from that date is May 2003 right?? So these means my Statue of Limitations for my Credit CArd payment is over right??? Even if I win the Lotto right now and pay them off it will still show up as a bad mark making me think why the hell should I pay it off right? So, does this mean they can't make me pay? I know they can try to scare me by eventually by trying to sue me but I can just goto court and state the SOL thing and it's over right??? So am I all clear? Can I get on with my life not having to pay them now? I have not ran my credit report in fear that it will cause a RED FLAG to tell them where I am haha.. Am I safe to run a credit report??? I've called up so many Lawyers and they tell me something different. Also, in 7 years will my credit be clean? I'm told this but everyday at my job we decline people for store credit cards because they claimed bankruptcy 9 years ago. I shouldn't claim bankruptcy right?

ALL help with my situation is VERY much appreciated. Thanks!!!

[retmar]

Yes, you are clear of any legal action if you are absolutely sure of your dates. You can find the dates when you order your CR's as they will be there. Don't be afraid as the CA can't do anything. All a CA can do now is send you a dunning letter each month in hopes you will pay. They cannot threaten you in any fashion. Yes, they can try and sue, but, your defense would be the SOL. So, what you can do is if you do hear from a CA, send them a C&D letter telling them to go eat worms and leave you alone. As to the reporting, the negative information can remain on your CR for up to 7 yrs. You can try and file a dispute with the CRA in hopes they get deleted which sometimes does happen. Or, if your dates are correct, it will fall of next year. It's up to you. As to filing BK, forget it. It isn't worth it in your case.

[LadynRed]

Before you pull your credit reports, OPT OUT with all 3 CRA's. That will stop the CRA's from selling your information to all their so-called 'business partners', it will stop all 'promotional' inquires to your CR, and should also stop the CRA's from telling the CA's you pulled your reports.

SOL in CA is 4 years, in AZ its 3 years for credit cards - you're free and clear, but be prepared to send out SOL C&D letters for a few years yet.

It won't stop them from dunning you but you can stop them easily now.

[WillyW]

Yes, you are clear of any legal action if you are absolutely sure of your dates. You can find the dates when you order your CR's as they will be there. Don't be afraid as the CA can't do anything. All a CA can do now is send you a dunning letter each month in hopes you will pay. They cannot threaten you in any fashion. Yes, they can try and sue, but, your defense would be the SOL. So, what you can do is if you do hear from a CA, send them a C&D letter telling them to go eat worms and leave you alone. As to the reporting, the negative information can remain on your CR for up to 7 yrs. You can try and file a dispute with the CRA in hopes they get deleted which sometimes does happen. Or, if your dates are correct, it will fall of next year. It's up to you. As to filing BK, forget it. It isn't worth it in your case.

Thanks for getting back to me.

[WillyW]

Yes, you are clear of any legal action if you are absolutely sure of your dates. You can find the dates when you order your CR's as they will be there. Don't be afraid as the CA can't do anything. All a CA can do now is send you a dunning letter each month in hopes you will pay. They cannot threaten you in any fashion. Yes, they can try and sue, but, your defense would be the SOL. So, what you can do is if you do hear from a CA, send them a C&D letter telling them to go eat worms and leave you alone. As to the reporting, the negative information can remain on your CR for up to 7 yrs. You can try and file a dispute with the CRA in hopes they get deleted which sometimes does happen. Or, if your dates are correct, it will fall of next year. It's up to you. As to filing BK, forget it. It isn't worth it in your case.

Thanks for getting back to me.

Okay, this step by step kicks a$$!

I just have a few more questions that will help me sleep better.

I just found a telephone number on this site for Opting Out

http://www.creditinfocenter.com/cards/preventSellLists.shtml

It says that when I call 1-888-567-8688 and Opt Out on All 3 CRA's it's good for 2 years.. so I guess I need to do it every 2 years right? So when I OPT OUT this makes it so the CAs can't see that I have requested my Credit Reports right?

Since my SOL is over does this mean that no one will begin to garnish my wages? If if they do garnish my wages how do I immediately make them stop? My job informed me that if someone garnishes my wages they can fire me due to it causes more work for them.

I also found a nice Sample C&D letter on that same website. So if they contact me I will just edit it appropriately.

After this I will try to see what I can do to improve my credit. But, the fact is, I owed them money, I was in the wrong.. how can I dispute that to take it off my report? haha.. sounds funny but is it possible and how?

THANKS

[WillyW]

Before you pull your credit reports, OPT OUT with all 3 CRA's. That will stop the CRA's from selling your information to all their so-called 'business partners', it will stop all 'promotional' inquires to your CR, and should also stop the CRA's from telling the CA's you pulled your reports.

SOL in CA is 4 years, in AZ its 3 years for credit cards - you're free and clear, but be prepared to send out SOL C&D letters for a few years yet.

It won't stop them from dunning you but you can stop them easily now.

I meant to direct that reply to LadynRed in general but all help is appreciated!

[retmar]

Do as LadynRed said. The one thing to understand is that it only stops the CRA. It does not stop the CA from making hard or soft pulls in regards to your CR. They can still do this. Just call that number and follow the directions.

No one can garnish your wages unless they have a court order. They first have to properly serve you, take you to court, and prevail in the hearing. If you do receive a summons, you would follow the directions and file an answer. Then, you would appear at the hearing and when it is your turn to speak, you would clearly site the law in regards to the SOL. Your employer cannot fire you for that reason. What they could do is fire you for being tardy, calling in too many times, or any other legitimate reason. If they told you it was for the reason of garnishment, laugh as you file a complaint with the Labor Board. They have already blew it by saying this to you. In most cases where an employee is terminated for garnishment reasons, the company finds another reason so they can cover their asses.

Correct. What you will do is write the letter to fit your situation.

There are different ways to look at this. If your desire is to walk away from this without paying at all, then you would file a dispute with the CRA's as "not mine" in hopes the CA does not respond which could cause deletion. Another option is that since you say you did owe the money and wish to satisfy that obligation, you could offer a settlement to the original creditor or CA. Since it is a CC account, alot of the monies that show as due are an accumulation of fees that were added when account went deliquent. So, what you would do is propose an offer clearly stating that you are aware that they have no legal recourse, but, you feel obligated to satisfy this obligation. For this reason, including that you are aware of the added fees, offer them say $.10 on the dollar as long as they either remove TL completely or change to read "paid as agreed". They will most often propose a counter-offer. Once you agree, make sure it is in writing and signed by both parties before payment is remitted. Be aware that you could receive a 1099 Form for the difference of amount due and amount paid if it exceeds $600.00. It is entirely up to you and how you feel about this situation as to how it ends.