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OC gone CA settled - CA posts new TL


getting my house
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Back in 12/04 I settled with Norfolk financial - didn't know about this board thought I was doing a good thing - anywho 11 months later (nov 05) the same CA I settled with reports to EX with new balance due and my last payment - as a side note the OC fell off EX several months ago.

SOL - based off EX report - I figure sometime beginning of 05 late 04.

And lastly I have a letter from Norfolk from Jan 05 saying, and I quote,

"please be advised this office has rec'd final payment in the amt of $xxx. Accordingly this account has been settled to the mutual satisfaction of the parties"

I recently posted a message similar to this thinking this was a reinsertion - it is not, norfolk has never been on my reports, this is the first time. Since I got no response I sent out a DV last week, that arrived 11/28.

So I guess my questions are - does the letter I have exclude them from doing what they are doing? Did I really restart SOL? Could I send this letter to the CA and/or CRA and have it deleted? What about the fact that the OC dropped off months ago?

Any input appreciated.

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Illegal. At no time is a CA allowed to change the date of delinquency on an account. EVER. As a matter of fact, they are required by law to post the same delinquency date as the original creditor.

Send a warning letter to the CA reminding them of this and telling them to remove the tradeline as the original one is past the 7 year period. If they refuse, sue them to force compliance and for damages.

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Methuss,

I don't believe they changed the date of deliquency - EX does not show this info online - what they did do was post a recent payment - which is the settlement amount.

But I am assuming I can still do the letter with the past seven year mark correct? Or should I do the nutcase letter? Or do I have to wait since I just sent a DV letter?

Thanks - I know I can get rid of this I just need to do it right

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Actually, if the OC account has fallen off, then there is no way to list the account unless they report a false delinquency date. Put simply, if they were reporting the correct date, it would not be showing up at all on your reports. Making a payment does NOT start the 7 year clock over again.

(1) In general. The 7-year period referred to in paragraphs (4) and (6)(2) of subsection (a) shall begin, with respect to any delinquent account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity, charge to profit and loss, or similar action.

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Really?? Not to change the subject or the issue at hand but,

My wife had an account with Midland credit and we started making 50.00 to them last year for a bit and then stopped after I found this board. To clarify, did making those payments restart my SOL to when they can sue my wife or get a judgement? Do they still have to delete the account when the 7 years is up. FYI, im in California

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To clarify, did making those payments restart my SOL to when they can sue my wife or get a judgement?

SoL is not the same as date of delinquency. That gets confused a lot.

SoL is the time that they can legally take you to court over unpaid debt. That varies from State to State and by type of account. The clock there starts with the date of the last payment. SoL can be reset by making a payment in a number (but not all) States. Some States require you to renew the obligation by admitting it in writing. Renewing the SoL does not change the date of the delinquency (see below).

Date of delinquency is only for credit reporting. The FCRA says that a negative item remains on your credit file for 7.5 years after the date of the delinquency (which is usually 30 days after the last payment was made) that immediately preceded the collection or charge-off. This time period is set in Federal law and is the same for everyone in the U.S. Collectors (and some OCs) routinely try to fudge it either to have as leverage against you or as "punishment" to make it stay longer after you have paid it. Even if an OC charges it off 4 years later, it does not change the reporting time. The clock starts with the delinquency, not the action itself.

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Typically a court would like to see that the consumer tried to settle the matetr without a judge intervening. So start with a letter clearly letting the CA know that the way they are reporting this is not legal and asking them to remove it. Tell them why it's not legal. State clearly that the letter is a dispute as per the FCRA and that they are required by law to respond within 30 days. The letter should be clear and courteous. Even offering up that you understand that it may have just been a mistake. No threats harsher than saying you will not hesitate to protect your rights.

Wait and monitor your reports. If they fail to report the dispute to the CRAs, that's a violation. If they fail to respond in 30 days, that's a violation. If they don't respond and don't delete, that's another set of violations. If they refuse to correct, that's a willful violation. By this time, if they have not removed it, you'll have a ton more to add on.

The next letter (if it is necessary) should be a much more stern ITS letter with an attached copy of a complaint filled out and ready to file with the court (at least circuit court). Let them know this is their final opportunity to avoid a civil action by correcting their mistake voluntarily. At this point you can express your disappointment in their lack of taking the matter seriously and make the accusation that it is apparent they don't feel following the law is a priority for them. Give them 15 days to respond.

If they ignore or refuse, file the suit and ask for injunctive relief as well as damages. I mentioned circuit court above. There is a reason for that. Small claims has no power to enter injunctive relief. In other words small claims can award money for damages, but can't force them to correct. Circuit court on up CAN force them to correct.

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