TinCupAZ Posted November 3, 2006 Report Share Posted November 3, 2006 I just received a letter from a CC company (Cap 1) about a debt I owe them. The debt is WAY over the SOL, but they are threatening to send me to a CA if I don't pay. Forgive me, but I think I'm not searching the forums properly or something, I'm not sure what the next step should be...deal with the OC and tell them it past the SOL date and negotiate from there? I'm assuming even if it's past SOL, they can still send to a CA...Thank you Link to comment Share on other sites More sharing options...
elyse449 Posted November 3, 2006 Report Share Posted November 3, 2006 Firstly, when was the debt incurred? How much is it? And yes, even if it's past SOL they can sell or assign it to a CA and you'd get the ding to your credit. It may be a good idea to try to work with them. I'll be able to respond further once I hear the details.Elyse Link to comment Share on other sites More sharing options...
TinCupAZ Posted November 3, 2006 Author Report Share Posted November 3, 2006 Hi elyse,Last payment on the account was 12/00. It is for a little under $1500. Any ideas how I should go about this? Link to comment Share on other sites More sharing options...
elyse449 Posted November 3, 2006 Report Share Posted November 3, 2006 Well, see the thing is that when they sell it to a CA they'll only get pennies on the dollar...especially w/ a debt THAT old. So, technically they should truly be willing to work with you...of course they're betting on you not knowing your rights. How much do you have to spend for this debt?Hmm...well, you may want to review the section on settling debts. Click on the link above in blue that says, "settle debts" and see what it offers. It may give you a better idea on what you may want to offer to them.Again, it depends on how much you have to work with. Either way, if you're settling for less than the full amount, you'll want a written agreement stipulating that they can't come after you for the rest. If the amount they take off is more than 600.00, you'll have to pay taxes on it to--you'll get a 1099.Let me know what you got to work with.Elyse Link to comment Share on other sites More sharing options...
TinCupAZ Posted November 3, 2006 Author Report Share Posted November 3, 2006 I could pay it in full...but I'm trying to do whatever is most beneficial to my CR Link to comment Share on other sites More sharing options...
breathing_easier Posted November 3, 2006 Report Share Posted November 3, 2006 Unless they agree to update your TL to 'Pays as Agreed' (ideal) or delete the TL entirely (not quite as ideal as you lose the history) then it won't do you much good at this point to pay it. You could end up with a 'Paid Collection' on your reports, which will majorly ding your credit. How is it currently reporting? If it's reporting correctly then a six-year-old negative isn't hurting your FICO much. It should fall off, at the very latest, in June 2008. I've never had a Cap One card, but from what I've read here they can be tough. However, if it were me, I'd fight it due to it being past SOL. Link to comment Share on other sites More sharing options...
TinCupAZ Posted November 3, 2006 Author Report Share Posted November 3, 2006 Currently reporting as a charge-off, but they never sent it anywhere..just kept it in house Link to comment Share on other sites More sharing options...
elyse449 Posted November 3, 2006 Report Share Posted November 3, 2006 If it's charged off, yeah-it may not do you much good to pay it now...unless you're concerned about a possible judgment or what not, even then if it's past SOL you could use that as your "absolute" defense.If it were me, I guess I wouldn't pay it. The darn thing is due to fall off your report next year, right? If they send it to a CA, then you can give them the "SOL has expired, will use as absolute defense" letter. Elyse Link to comment Share on other sites More sharing options...
TinCupAZ Posted November 3, 2006 Author Report Share Posted November 3, 2006 Thank you all for your input!I guess my last question on this issue would be...is paying or settling now going to hurt more than a 6 year old charge off? Link to comment Share on other sites More sharing options...
elyse449 Posted November 4, 2006 Report Share Posted November 4, 2006 If it's due to roll off in one more year, nah. The only time paying it MAY help you, is if you're getting ready to buy a house--I hear it looks better to possible mortgage companies. I can't see the good in paying/settling now. Also, you may want to research how making a payment *may* either restart the SOL on the debt, or re-age the reporting time of said debt. I've never read anything definitive on it and it'd be good to clear that up PRIOR to any written agreement. If it were me, I'd leave it.Good luck.Elyse Link to comment Share on other sites More sharing options...
PolarBearnCO Posted November 6, 2006 Report Share Posted November 6, 2006 And yes, even if it's past SOL they can sell or assign it to a CA and you'd get the ding to your credit.I'm not sure why this would be true. If it's past SOL, then legally they cannot continue collection activity, right? Sending it to a CA would be continuation of collection activity. Link to comment Share on other sites More sharing options...
willingtocope Posted November 6, 2006 Report Share Posted November 6, 2006 Nope...sorry. SOL is a state by state thing, and in all states, except perhaps Wisconsin, all SOL means is IF they sue, you have an absolute defense. Doesn't mean they won't try...and if they do try, and you don't raise the SOL defense...they might still win. Link to comment Share on other sites More sharing options...
direred Posted November 6, 2006 Report Share Posted November 6, 2006 They can continue collecting as long as they like, and report during the reporting period. They can also send it to a CA, where you'll have two negatives to deal with.There's no ceasing of collection activity because the SOL has expired (in nearly all states).If you pay it completely off, though, your FICO will likely increase because you're not overlimit on that card any more. I don't think settled will make a difference. Link to comment Share on other sites More sharing options...
TinCupAZ Posted November 7, 2006 Author Report Share Posted November 7, 2006 Thanks again for all the replies! Funny thing, they sent me the letter saying to call them AND it dropped off all 3 cr's....I'm sure it'll be back soon enough LOL Link to comment Share on other sites More sharing options...
breathing_easier Posted November 14, 2006 Report Share Posted November 14, 2006 Nope...sorry. SOL is a state by state thing, and in all states, except perhaps Wisconsin, all SOL means is IF they sue, you have an absolute defense. Doesn't mean they won't try...and if they do try, and you don't raise the SOL defense...they might still win.The other state is California. Link to comment Share on other sites More sharing options...
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