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will settling with OC on a CO restart SOL??


sharizap
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If I accept a settlement offer on an old, out of SOL CO still held by the OC, will paying the settlement amount restart the SOL or 7 year reporting time? I was under the impression that SOL is firm, based on the DOFD, or DOLA if there are payments (not settling/closing the account) after the DOFD. And, does the 7 year clock start over again after the account is settled? I thought, after reading the forums, that paying a settlement would NOT affect SOL or reporting time, but I've been advised in another thread that if I accept an offer (so that we can get a mortgage within a few months) that it will restart the 7 year reporting time. Is this true?

Here's the original thread: http://www.debt-consolidation-credit-repair-service.com/forums/showthread.php?t=268730

Thanks for any help.....

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Why keep reposting same question? Read the want 0 replies stickies, we are all here in this community to help each other, I am not a lawyer or give legal advice, just my opinion based on your situation. If what I'm telling you is not what you want to hear you don't need to re post be patient someone else will chime in. Or use the search button it can be your friend!!

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1.It's not the same question.

2. I have searched and keep finding different and conflicting answers- just looking for some clarification- hopefully from people who've been doing this a while longer.

3. I have also read the stickies. Thanks for the suggestion.

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1.It's not the same question.

2. I have searched and keep finding different and conflicting answers- just looking for some clarification- hopefully from people who've been doing this a while longer.

3. I have also read the stickies. Thanks for the suggestion.

Your welcome and don't be fooled by the number of post you see under somones name it doesn't make them an expert on anything. If you truley want to answer your own question read the entire FCRA. Or ask God he has more post than I do and he truley will give the answers your seeking for! Good luck!
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SHARIZAP: THERE ARE 2 TYPES OF S.O.L.s ONE IS THE REPORTING PERIOD AND THE OTHER IS THE TIME ALLOWED BY LAW FOR YOU TO BE SUED IN COURT. BASED ON THE DATES YOU GAVE, THE BEING SUED S.O.L. IS OVER, BUT THEY CAN ALWAYS TRY TO SUE YOU AND IF THEY DO YOU MUST APPEAR IN COURT OR THEY MAY GET A JUDGEMENT AGAINST YOU.......BUT IF YOU GO TO COURT YOU TELL THE JUDGE THE ACCOUNT IS TIMED BARRED ( PAST THE S.O.L.) IT WILL BE DISMISSED AND YOU WIN........IF YOU EVER MAKE ANY PAYMENTS AND IN SOME STATES A PROMISE TO PAY, YOU RESTART THIS S.O.L. TO BE SUED 4 MORE YEARS

AS FAR AS THE OTHER S.O.L. 7 YEARS ON THE CREDIT REPORT, NOTHING YOU DO CAN RESTART THIS TIME IT IS ACTUALLY 7 YEARS AND 180 DAYS MAX AND IT MUST BE REMOVED BY FEDERAL LAW....... THAT BEING SAID THEY MAY REPORT IT TO THE CRAs AS A CURRENT ACCOUNT GONE BAD AGAIN THIS IS ILLEGAL BUT THEY WILL TRY IT AND YOU WILL HAVE TO FIGHT.

IF YOU PAY THE CREDITOR LESS THAN WHAT IS OWED AND THEY ACCEPT IT THEY WILL REPORT IT TO THE CRAs AS SETTLED FOR LESS AND IT WILL NOT HELP YOUR CREDIT AT ALL. THIS IS NOT A SECURED DEBT AND WILL NOT AFFECT TITLE WHEN APPLYING FOR A LOAN AND MOST LENDERS WILL NOT REQUIRE IT BE PAID PERIOD.

THIS DEBT AND ANY DEBT THAT GOES UNPAID BY ANYONE CAN BE SOLD TO A THIRD PARTY COLLECTION CO. AND THEY WILL TRY TO COLLECT SO BE PREPARED AND DO IT THE RIGHT WAY. YOU NEED TO ANSWER THE PHONE AND IF IT IS A CC TELL THEM YOU ARE RECORDING ALL CONVERSATIONS (DO RECORD THEM) AND THAT YOU KNOW YOUR RIGHTS AND THAT YOU ARE NOT REQUIRED TO PAY THE DEBT BECAUSE THE S.O.L. HAS EXPIRED AND THEN SEND THEM A CEASE AND DESIST LETTER.(THEY WILL PROBALY HANG UP ONCE THEY KNOW THEIR BEING RECORDED) THEY MAY SELL THIS ACCOUNT OVER AND OVER AND YOU WILL NEED TO RESPOND TO EACH CC. THE LAW DOES NOT PROHIBIT THEM FROM TRYING TO COLLECT 50 YEARS FROM NOW BUT DON'T GIVE IN AND YOU WON'T LOSE.

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AS FAR AS THE OTHER S.O.L. 7 YEARS ON THE CREDIT REPORT, NOTHING YOU DO CAN RESTART THIS TIME

Yes it is, if they settle and make a payment they re aged the debt their selves. FCRA says that any furnisher/debt collecter must report a tradline accurately, not reporting and updating dola the date when they make settlement payment would put them in violation of the law. Besides that, very well said Bank!:) I'm impressed for only having 4 post.

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I would disagree with justincase.....

The 7 year reporting period (is not a SOL, but we knew what ya meant OP) begins at the date of first major delinquency. That is when you first went late and it was never brought current. FCRA states take that add 180 days and 7 yrs. Most of us see the CRAs take it off at 7 yrs anyway (or earlier sometimes).

It would be my contention that settling is still a derog, so it technically is not brought current.

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The 7 year reporting period (is not a SOL, but we knew what ya meant OP) begins at the date of first major delinquency.

Ok, I think I got my terms confused, and I was trying to sort out what I was asking but it was late... got my question straight in my head as I was falling asleep... (I really should have a cut-off time on the computer- the head gets fuzzy after 1am!)

That's what I was thinking was what didn't move, based on the DOFD- the reporting period, not the SOL. The ONLY reason we're considering settling this is because we want to be able to get a mortgage this fall. Won't having this on there, unpaid, keep us from getting approved? Also, if we take the settlement offer and insist on a letter stating that they won't sell the balance or pursue it further, how big a deal is the reset SOL? If they've agreed that it's done with, in writing, doesn't that protect me from them coming after us again or selling the balance?

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When they send a letter stating "legally settled for less than full amount" they can't come after you for the difference.

Imagine they accept settlement. Sign agreement or send you letter. Then they violate that and sue. You show up in court with the agreement and the judge chews out CA just before he says, "Case Dismissed!"

I do understand needing to pay things to get a mortgage. Honestly, I would talk to a broker and let THEM tell me what has to be paid first! If you pay a CA and he marks it paid, the DOLA is fresh and you will lose points on your Credit Score which hurts your ability to qualify.

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Before applying for a mortgage loan, leave unpaid collections alone (unless you have 1-2 years for them to age). If the LENDER insists, PIF can be arranged for the closing. CA's are very familar with this. It happens all the time.

Reporting Period is a stable date based on the DOFD. Find out what that date is and make the OC and CRA's stick to it. Your derog items (with a few exceptions) will be shielded from view after that time period.

SOL is state law and varies not only by location but also by account type. Some states have provisions that allow SOL to be tolled or re-set. You need to read your state's statutes for specifics.

DOLA is not the date that causes deductions to your score. The 'date last reported' is PLUS any derog data in the TL. THAT date can change with a mere update (just search 'Crap One' to see some notable examples). Often, simply disputing is enough to get the TL updated, which may cause a lower score.

"...how big a deal is the reset SOL..."

Only as big as getting sued for the debt and your 'time-barred' defense failing. Once again, read your state's statutes for the specifics.

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