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Why OC let debt go for so long?


Worried
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I am confused on why some OC let debt go into SOL. I have read post where it has been 5 or more years that people have never had to pay back their debt. Don't most OC or CA come after you at some point? I can't imagine them not coming after me.

Not that I want them to call but I have a OC that we owe 20,000.00 and I have not heard from them. Should I be worried??? I want to settle but can't right now!

:confused:

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OCs make money in ways that we just don't understand.

For example, having an open account on which they can continue to charge interest and penalities and late fees may be of value to them because of the inflated "accrued income" it gives them for tax purposes. At some point in the future, they'll "write off" that account, and get a corresponding tax break. In effect, they're saving up tax deductions. The IRS has noticed this, and now has a rule in effect that says if there has been no activity on an account for 3 years, the OC must write it off and issue a 1099c to the debtor. (This is one thing you might be aware of).

It also depends on the OC...and what company or bank they might be affliated with. AMEX for example, seems to keep non-perfoming accounts around longer than others. Crap 1 actually seems to encourage defaulted accounts.

Bottom line...don't spend time worrying about it. They haven't forgotten you. You'll hear from them sooner or later...

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That's quite a bit of money, and I would say that it won't be too long of a wait to hear from someone. Especially if you're a home owner, employed or have other assets.

Have you checked your credit report recently? That's a good place to start for information. If you get a report directly from each of the big 3 you'll see who's pulled hard & soft inquiries. If you haven't you can get a free copy once a year from each bureau. Go to....

https://www.annualcreditreport.com/cra/index.jsp

If you're really worried you can always call to see how it's being handled & who is handling it, but with that amount I seriously wouldn't bank on it going past the limitations period.

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How and where do I begin to search the local courts? Do I call them? Is there a website?

I am close to the 180 day mark on most of my OC. I was with creditsolutions and dropped them two weeks ago. THEY DID NOTHING FOR US BUT RUIN OUR CREDIT AND CAUSE ALOT OF STRESS. Like I said I want to settle with all of them but it will take about 6 months.

Oh by the way after two months with CreditSolutions I was summons by a CA/Law Firm for two of our Household (Orchard Bank) cards. We agreed with their monthly payment to avoid going to court.

So does that mean I still have a judgement against us??

Thanks for all the advice!!!

Worried

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Some OCs are just not in the business of suing their customers or former customers.

That was one of the reasons why the FDCPA was written to not include OCs. The legislature figured that the OC would have their name on the line and wouldn't engage in the types of tactics a 3rd party assignee would. They don't care about their reputation with consumers for obvious reasons.

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How and where do I begin to search the local courts? Do I call them? Is there a website?

Do a google on your local county's name...in Ohio, they're web site is something like www.co.cuyahoga.oh.us but it might vary in other states. If you can't find the appropriate site...call. (You might want to call anyway, just to be sure).

I am close to the 180 day mark on most of my OC.

There really isn't anything magical about 180 days. Yes, there are FDIC rules that say that FDIC insurred banks must "write-off" bad debts within 180 days, but, we've yet to establish any firm relationship between the CC issuers and the FDIC....also, it isn't a law, just an FDIC guide line. So, each CC will decide for themselves when to charge off an account and, for that matter, when or if to sell it to a JDB.

Oh by the way after two months with CreditSolutions I was summons by a CA/Law Firm for two of our Household (Orchard Bank) cards. We agreed with their monthly payment to avoid going to court.

So does that mean I still have a judgement against us??

Possible. CAs have been know to go ahead and get the default judgement to smack you with if you don't pay on time. Check the court that issued the summons...

Thanks for all the advice!!!

Worried

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I agree with everyone on this particular case. I would definitely check county court house records on your case as well as get your credit reports. In regards to the statues of limitations, it varies from state to state and depends on the type of debt involved. Depending on the state, open-ended contracts such as credit cards might be considered a written contract, an oral contract or have a different statute of limitations altogether. Be aware that you can restart an expired statue of limitations in some states by making a payment on an old debt or just by acknowledging that you owe the money. With an unpaid collection, if the debt is yours and within the SOL, be careful about disputing he information with the credit bureaus. You could awaken interest in collecting the deby by drawing attention to it. If you are not prepared to pay it or get sued and suffer a black mark on your credit score, it might be better to leave it alone and hope it slides off your report in a few years. If the SOL is well past, you can be more aggressive in trying to get it off your report. Make sure you don't start the SOL all over again. If you are unwilling to handle all of this yourself, a few good law firms handle cases like this. Use the National Association of Consumer Advocates to get a referral but steer clear of any law firm that guarantees results or demands enormous fees in advance.

One other point, a charge-off of a debt is just an accounting term. The creditor can continue to try to collect or sell the debt to a collection agency which can try to get you to pay. Your obligaton does not end when an unpaid debt falls off your credit report; collection action can continue. Your states SOL defines how long a creditor or collection agency can take you to court over your debt. Even if you can't be sued, they can still ask you to pay.xpopcornx

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