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Conequences of a validation letter?


bndfishing
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I have an old debt that was bought by Sherman 3 years ago, there has been no activity on the account for 5 years. My states SOL is 6 years, but I need to try and get it cleaned off. I have not been contacted by sherman and if I was it has been years ago and I don't remember. I was going to send a validation letter but I don't know if I should because then they would know my address and it could spark intrest in my account. Should I get a off site mail box for all the correspondence, should I just wait it out? Also what happens after the SOL runs out, can you get it removed from your CR then?

Thanks

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So your SOL on court action is 6 years for your state?? Where are you from?

Well, since you are certain that your SOL for court action is 6 years, it is possible you may open a can of worms, have you tried disputing it with the CRA's yet? You may want to make sure before you do this, but I do not think the CA will get your new mailing address just from disputing.

I am also curious to know the amount, if it is in the hundreds, you may not have a problem with the whole dispute process, DV's and all.

I would post a couple questions in an area to ask others if they have been sued for the amount of your debt.

Just as you are, I would be weary about bringing some light on your account when it is so close, so I guess you have a decision to make, whether or not you want to get it off now (or hope to get it off), or wait for the SOL then start slamming them with the DV process and hope to get a delete. Sometimes though, a CA will not hold the CO that long, so it is possible they no longer have it, sold it to another CA for dirt cheap and if you dispute it, they may just come right off. Its hard to say, I would wait for a couple other replies. But give us some more details on the debt, DOLA, Account Status, balance, what type of Derog?

These questions will help those that reply answer more specifically.Good Luck. :D

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I live in oregon now (sol 6 years) the debt originated in Idaho (sol 4 years) The debt started out as a sears account when I was real young then they gave me a sears plus. Well newly married and stupid the dept ran to *K and 4k. An unemployment later and it was impossiable to catch up. Tried the credit counciling, worked until the next round of lay offs, and after that I have never paid on it again. Sears gave up and sold it to Sherman.

#1

Account Type: Open

Account Number: SEARS-5307116XXXX

Payment Responsibility: Individual

Date Opened: 06/2003

Balance Date: 01/2005

Balance Amount: $12,141

Monthly Payment: $0

High/Limit: $8,040

Account Status: Collection

Past Due Amount: $12,141

Comments: COLLECTION ACCOUNT

#2

Account Type: Open

Account Number: SEARS-5502778XXXX

Payment Responsibility: Individual

Date Opened: 06/2003

Balance Date: 01/2005

Balance Amount: $8,625

Monthly Payment: $0

High/Limit: $4,989

Account Status: Collection

Past Due Amount: $8,625

Comments: COLLECTION ACCOUNT

They have added a lot to the balance, I was hoping they might settle for 10K, what do you think?

Here is how sears lists it

Account Type: Revolving

Account Number: 550XXXX

Payment Responsibility:

Date Opened: 05/1995

Balance Date: 06/2003

Balance Amount: $4,989

Monthly Payment: $0

High/Limit: $4,989

Account Status: As Agreed

Past Due Amount: $0 $0 $0

Comments: ACCOUNT TRANSFERRED OR SOLD CHARGE ACCOUNT TRANSFERED TO ANOTHER OFFICE PURCHASED BY ANOTHER LENDER

Account Type: Revolving

Account Number: 530XXXX

Payment Responsibility: Individual

Date Opened: 08/1992

Balance Date: 06/2003

Balance Amount: $8,040

Monthly Payment: $0

High/Limit: $8,040

Account Status: As Agreed

Past Due Amount: $0

Comments: ACCOUNT TRANSFERRED OR SOLD CHARGE ACCOUNT TRANSFERED TO ANOTHER OFFICE PURCHASED BY ANOTHER LENDER

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Those are some pretty high balances, forget what I said about them not suing over it, you may just open up a can of worms on that one. So if you last payment was made in early 2000, then your SOL runs out early 2006, and it falls off your report early 2007. If by reason they do not sue, you only have to wait a year to have it fall off, on the other hand if you want your credit repaired today then paying them off and getting deletions would be the best bet. You are suggessting a payoff settlement of $10,000, and looking over the account, it looks like the reason the balance was at $12000 and $8000 on the other is because of all the fees your got caught up during your hard times.

Are both Sears and Sherman reporting the debt?? Either way , you may want to see if sears will still take a payment, and if they at all are willing to accept payment for the debt, because if they are also reporting on your report and you pay sherman, Sherman cannot delete Sears file, only theirs upon agreement. Sears on the other hand, may have the ability to recind the Collection with Sherman and that would in turn enable you to delete Sherman with a dispute if they didnt just delete it on notifcation from Sears of the settlement.

I think they will take less than the $10,000 by the way, you may want to start lower when you do finally negotiate, that way, you will meet in the middle, I havent used this myself so do not take my complete word for it, but you might even get a more generous payoff balance if you tell them you are filing for BK.

Another interesting thing about your debt and your listings, under Remarks Sears shows transferred to another lender, and transferred, that message sometimes comes up with you transfer the whole balance to another account, I wouold think since they did sell it, then there balance should be 0.00

Good luck, keep posting, consider all options, be persistent once you make the decision.

Do you have the $10,000 in cash ready to go? Just wondering, even if you do, I would definately start way lower, both Sherman and Sears know that as the years go by, and in your current year of the delinquency, their chances of ever receiving payment drops dramatically.

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Absolutely, like I said, I do not know where I read it but each year a debt is owed and not payed, the likelyhood of recieving payment at all decrease dramtically, and in your time frame so far, they know they may have to take you to court or hope you do not happen to just leave it on the report and just let it fall off eventually. I would say 5K is a great to start with, remember, you want to develop a relationship, and give an honest sob story, I am sure your reason for not paying the accounts was good, ad a little to it if you have to, make a drama movie out of it. DO NOT tell them early you are going to make a payment, somewhere in the middle of your story, say something like, I am not sure what to do, I just spoke with a Bankruptcy attorney and some credit specialists, and a bankruptcy almost looks like your best option, because even if I could come up with some money, I couldnt come up with that much and it would still show on my CR as a bad account. On the other hand if I file for BK, then it would be included, and I would just have to repair my credit, and it would be better off using the money I may be able to come up with and start secured lines of credit. Try to keep information like this in front of you so you dont fumble, try to sound frustrated (which I am sure you are) and confused on really what the best option is. If you are able to smoothly put in there that the CO would still show up, they will pick up on that, and knowing they may not get a dime if you file for BK, it may all just fall into place, and they may offer a pay for delete.

Considering what Sears has listed on the TL, I would definately try and talk to Sears and settle with them, because they are the only one that can recind the CA, tell them the account was settled and the CA will have to delete because they are no longer collecting a debt. Thinking about it, I would try and deal with only Sears, I think you will have some luck here, just make sure that you do not pay them anything until you have a letter in hand, and when you get that letter I would post it here on the site, and give the experts a crack at the clauses and make sure its binding. Then make the payment. Good Luck.. CALL TODAY... :D

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Well I called Sherman, they said one account had been transfered out of their office and one account was still there the one for 12k. I worked the frustrated maybe BK line and they offered to settle for 9,500. This seems like a pretty bad settelment offer. I said that wouldn't work and that I could only come up with 3-5K and he said too bad. The other account had been transfered to an attorney and I have to call them. Looks like I will have to BK these accounts.

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I am going to send them the following DV letter. Let me know if this looks right.

Dxxxx Sxxxxx

xxxxxxx

xxxxxx

xxxxx

Sherman Acquisition

P.O Box 740281

Houston, TX 77274

Date: 3/7/2005

Re: Acct #xxxxxxxxxxxx

To Whom It May Concern:

This letter is being sent to you in response to a notice sent to me on September 30, 2002). Be advised that this is not a refusal to pay, but a notice sent pursuant to the Fair Debt Collection Practices Act, 15 USC 1692g Sec. 809 (B) that your claim is disputed and validation is requested.

This is NOT a request for “verification” or proof of my mailing address, but a request for VALIDATION made pursuant to the above named Title and Section. I respectfully request that your offices provide me with competent evidence that I have any legal obligation to pay you.

Please provide me with the following:

• What the money you say I owe is for;

• Explain and show me how you calculated what you say I owe;

• Provide me with copies of any papers that show I agreed to pay what you say I owe;

• Provide a verification or copy of any judgment if applicable;

• Identify the original creditor;

• Prove the Statute of Limitations has not expired on this account

• Show me that you are licensed to collect in my state

• Provide me with your license numbers and Registered Agent

At this time I will also inform you that if your offices have reported invalidated information to any of the 3 major Credit Bureau’s (Equifax, Experian or TransUnion) this action might constitute fraud under both Federal and State Laws. Due to this fact, if any negative mark is found on any of my credit reports by your company or the company that you represent I will not hesitate in bringing legal action against you for the following:

• Violation of the Fair Credit Reporting Act

• Violation of the Fair Debt Collection Practices Act

• Defamation of Character

If your offices are able to provide the proper documentation as requested in the following Declaration, I will require at least 30 days to investigate this information and during such time all collection activity must cease and desist.

Also during this validation period, if any action is taken which could be considered detrimental to any of my credit reports, I will consult with my legal counsel for suit. This includes any listing any information to a credit reporting repository that could be inaccurate or invalidated or verifying an account as accurate when in fact there is no provided proof that it is.

If your offices fail to respond to this validation request within 30 days from the date of your receipt, all references to this account must be deleted and completely removed from my credit file and a copy of such deletion request shall be sent to me immediately.

I would also like to request, in writing, that no telephone contact be made by your offices to my home or to my place of employment. If your offices attempt telephone communication with me, including but not limited to computer generated calls and calls or correspondence sent to or with any third parties, it will be considered harassment and I will have no choice but to file suit. All future communications with me MUST be done in writing and sent to the address noted in this letter by USPS.

It would be advisable that you assure that your records are in order before I am forced to take legal action. This is an attempt to correct your records, any information obtained shall be used for that purpose.

Best Regards,

DS

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