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Bank - Credit Card Debt


JohnOG
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In '98 I was not able to pay back a credit card debt (last payment August 1998 and ultimately the bank assigned/sold it to a CA. Multiple CA's from then to recently have over time tried to validate/collect (via anonymous phone calls of course), but no contact/communication has ever been established with them hence their attempts to verbally/written verification have not succeeded. Now it is past 7 years (SOL in my state is 6 years) since last payment made on the debt. Question is: 1) Would the last CA attempting to collect return this debt back to the original bank after all this time? 2) Can this bank still collect after the SOL and post the due amount (charge + interest + whatever fees) on your checking account?

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Can this bank still collect after the SOL and post the due amount (charge + interest + whatever fees) on your checking account?

What do you mean by this? Why do they have your bank info? Is the bank the one your regular checking/savings account is at?

If the SOL is up, they can still sue you, but you have to show the SOL is up as your defence.

After 7 1/2 years it should come off your credit report.

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Hi Anisah_H,

You said: "What do you mean by this? Why do they have your bank info? Is the bank the one your regular checking/savings account is at?"

Yes, it is the same - banks have gone through mergers.

You said: "If the SOL is up, they can still sue you, but you have to show the SOL is up as your defence."

Yes, our justice system always allows one to sue or bring litigation regardless if that is one's fancy, so you are correct they can always sue, but since the SOL is up, I'm trying to understand what is going on. Should I wait to see, because contacting them about this issue could trigger something since it will involve some type of verbal information/communication.

You said: "After 7 1/2 years it should come off your credit report."

I'm not worried about the credit reporting, but I am worried that it appears they have posted a negative balance on my checking account and the small balance that was there apparently appears it's not available.

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That is the thing, since you kept an account active, I don't know that anything prevents the bank from taking it out of your account. Even though the SOL gives you a defense to suit, it doesn't protect you from what they did. Other laws may apply, but the FDCPA, FCRA and SOL do not.

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That is the thing, since you kept an account active, I don't know that anything prevents the bank from taking it out of your account.

Well, they didn't take the small amount out, since it still shows as the "available" balance, but under "current" balance it shows a negative dollar amount. Normally when you deposit a check it immediately shows as the current balance, but not till it clears does it show as an available balance and it's the available balance that they would allow you to withdraw. So the available still shows as being there, since it's not gone to $0.

Even though the SOL gives you a defense to suit, it doesn't protect you from what they did. Other laws may apply, but the FDCPA, FCRA and SOL do not.

I'm confused because you said that the SOL does not apply, yet the SOL would be a reason for a defense. So time limits does or does not matter?

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The SOL is only a defense to a suit. It doesn't mean that they can't collect, it doesn't even mean they can't sue you. It just means that if they do, you have a defense. If you owe a bank money and you are foolish enough to deposit funds with that bank, don't be surprised when they collect.

Same thing with a utility. Say you have an electric account and you move without paying your final bill. 10 years later, you move back to the area. That electric company can refuse to connect your new service until you pay the old bill. Perfectly legal. If you want to have electricity, you will have to pay it.

Same thing here, unless there is some banking regulation of which I am not aware, they can do it. At least as far as the FDCPA, FCRA and SOL are concerned.

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If I'm reading the original post correctly, it sounds to me like the account was charged off. The bank already sold the account and claimed the loss on their taxes. I don't think it would even be in their interest to buy it back from the CA and try to collect it from you now.

If it wasn't a charge off and they still own it, I wouldn't doubt they'd try to take their money, if they know for sure that you are the same person.

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