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chadwick37
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I've been doing a lot of reading but I'm not sure where to start with my situation so I would appreciate some advice.

Basically I've been running from creditors for almost 4 years and I want to stop and take care of everything. I had two credit cards, one from Bank of America and one from MBNA.

BoA account was $3,437 and was charged off 10/2001 and has been turned over to Dynamic Stratagies for collection. They list the past due amount at $6,689.

MBNA account was $6,889 and was charged off 12/2002 and has been turned over to NCO Financial for collection. They list the past due amount at $10,678.

I live in Washington state where the SoL is 3 years so BoA is past the SoL and the SoL on MBNA will be up next month. I have not contacted either of these creditors. I have the means pay off both of these creditors if they were to accept $.50 or less on the dollar. What should be my first step? What steps should I take to remove these from my credit and how do I begin to rebuild my credit?

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Wait until both accounts are beyond the SOL. You then have the option to make suitable payment arrangements or simply tell them to take a hike.

The debts being beyond the SOL gives you an affirmitive defense against lawsuits. Just be sure that you are correct about the debts being beyond the SOL because if you are sued, you will have to prove the SOL has run out.

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I usually suggest that consumers be pro-active rather than not but with one debt past the SOL and one nearly so, I'd sugget you do nothing until both debts are past the SOL.

At that point, their options to collect are essentially zero so, you shoudl be able to work out an attractive settlement with each and hopefully, a PFD arrangement since you also seem to be concerned with your credit reports.

Make sure whatever you agree to do, get in in writing especially if you settle for less than the full amount of the debt...there are resources on this site to help you word it properly to protect yourself down the road.

One word or warning, be sure of the SOL status.

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Make sure you have the paperwork to show the date of last payment/date the account went deliquent so that you can establish when the SOL clock started runing.

Then, check with an attorney who is faimilar with this part of the law...in some jurisdictions, the SOL is being attacked by some creditors and an attorney who is up on the latest info shoudl know how "clear-cut" the law is in your state.

With quite a few thousand dollars involved, a couple of hundred for an attorney's time is well worth the expense.

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According to my credit reports the debt was charged off after the account being delinquent for more than 150 days. If the SoL clock starts ticking after the last payment was made I should be well past the SoL.

I think I'm going to look for an attorney to verify my assumption however it seems to be more difficult to find one that will handle personal credit since the BK laws changed.

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I have another question. After reading a lot on this site, I'm wondering if I should start the process with the CA, assuming I'm past the SoL, with a DV letter? Should I also file a dispute with the CRA's? Or should I just begin the process with negotiating a settlement?

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What a CA or an OC for that matter has reported to the bureaus is not the evidence I was suggesting...much much better to have you own indipendent evidence such as the last cancelled check you used to make your last payment, or lot's of statements from the OC with the same date of last payment, etc.

That aside, I would start with the OC to negotiate a settlement...if they've sold the debt(s) or otherwise assigned them to a CA they will tell you. However, you need to and have a right to verigy anything they tell you...you don't want to be paying fees, etc that you don't actually owe so if the amounts they say you owe doesn't make sense then you should require them to fully explain how the amounts were arrived at.

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thanks, unfortunately I'm sure I don't have any documentation from my last payments. I've moved a couple times and I'm sure I tossed all of that stuff. I was avoiding this stuff and wasn't thinking that some day I would actually become responsible and want to take care of the messes of my past life. So all I really have to go on is what has been reported to the CRA. Before I open a can of worms I really want to make sure I know what I'm doing.

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Screw MBNA! Let em rot in hell MBNA is notorius for sitting on payments and charging late fees. They are worse than First USA visa for that kind of scam.

Bank Of America is just as bad as MBNA but I have never delt with them that I can recall.

I think the SOL in WA is something like three years. I wouldn't worry about them any more unless they sue you. If they sue you then you might have a problem.

Someone recently posted the rules for WA so I would look over those to see if they can help you. Good luck. Link

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Hey Loser,

Guess which two creditors were most responsible for the new bankruptcy laws? You're right...MBNA and First USA. They combined for many hundreds of thousands of dollars paid to lawmakers reelection funds in order to ensure passage of this law. I wonder why......?

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