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What to do now? Did I screw it all up?


barderspond
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Okay, I had sent three letters to CA's requesting validation of the debts they're claiming I owe--each shows up as a collection account on my CR's. I sent that on March 23, 2007.

Unfortunatley, that was well before I started frequenting these boards and realized there's a proper process -- namely, dispute with CRA's first THEN request validation. I did not dispute these with the CRA's. So...

One of them responded in mid-April stating they would research it and get back to me within 60-90 days. The other two never responded.

Should I go the original/proper route and start over again by disputing with the CRA's, or could that now wind up doing more damage? Or should I send a letter to the other two demading they resopnd or remove my entry from the CR's?

They are as follows:

Palisades Collections:

Amount -- $5384

Assigned -- Dec 23, 2003

Reported -- Feb 18, 2007

Original Lender -- Bank One

Paragon Way:

Current Balance -- $507

Assigned -- Dec 20, 2005

Reported -- April 15, 2007

Original Lender -- CashnetUsa

CachLLC:

Balance -- $727

Assigned -- May 4, 2006

Reported -- May 15, 2007

Original Lender -- Household bank

....so I don't show that they've even recorded that it's disputed, or apparently taken any action on it at all, but they're definitely still reporting it. Thoughts????

One more thing:

My short-term (3-5 month) goal is to reach a score of at least 620, so I can refi out of my curent ARM into something more reasonable without having to fork over $200 in PMI each month. My scores (FICO) are as follows:

4/07:

Exp -- 589

TU -- 582

EQ -- 578

5/07:

Exp -- 612

Tu -- 602

EQ -- 570 (The jerks dropped my score after I disputed an account that I had already paid but was still showing up as past due and charge off through this year with an open status. After dispute, they reaged it, updated it with two 90+ day lates in March and April of this year, and kept the CO's through Feb of this year. I had paid it off in April of 06. Goes to show where trying to do the "right" thing will get you)....

So if I challenge the above, do I risk something potentially setting me back like what happened on EQ? (Oh, and I'm already preparing my notice to that OC with legal threat if they do not fix their reporting, but that's lost time and thus a lot of lost $$$ for me).

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Actually, whether to dispute first or second with CRAs is a matter of opinion, not a rule, so I wouldn't worry.

Go ahead and dispute all three with the CRAs. Whether you do so in writing, via the web, or by phone is also really just a matter of personal preference.

Mainly, if the idea is that if there are violations - and you plan on suing, everything should be in writing, sent CMRRR.

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Actually, whether to dispute first or second with CRAs is a matter of opinion, not a rule, so I wouldn't worry.

Go ahead and dispute all three with the CRAs. Whether you do so in writing, via the web, or by phone is also really just a matter of personal preference.

Mainly, if the idea is that if there are violations - and you plan on suing, everything should be in writing, sent CMRRR.

One more thing I'd like to add, if you haven't already come across this, be careful of waking sleeping giants. If the "alleged" debts are within SOL, I would leave them alone.

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One more thing I'd like to add, if you haven't already come across this, be careful of waking sleeping giants. If the "alleged" debts are within SOL, I would leave them alone.

Could you expand? Are you saying that if they are not likely to fall out of SOL any time soon I may want to ignore them? By sleeping giant, do you mean by pressing them, I could end up trigging some serious collection effort? Palisades as been attempting to call my home (I have caller-id) despite my request to stop calling me and communicate only via mail. The others haven't attempted to contact me at all in any way.....at least not for the past six months or so.

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Could you expand? Are you saying that if they are not likely to fall out of SOL any time soon I may want to ignore them? By sleeping giant, do you mean by pressing them, I could end up trigging some serious collection effort? Palisades as been attempting to call my home (I have caller-id) despite my request to stop calling me and communicate only via mail. The others haven't attempted to contact me at all in any way.....at least not for the past six months or so.

If the debt is still within the statute of limitation (which is different than the reporting time), and they haven't been bugging you, then I would leave them alone. You could trigger some collections attempts once they hear from you. For Palisades, if they are also within SOL, then I would just IGNORE the calls. Telling them to only contact you via mail, could leave them with a choice of filing suit against you.

BTW, it looks like the SOL in MT is 3 years on revolving accounts and 8 on written (ridiculous). That might make you have to consider other options.

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I think that makes sense. Actually, I live in Minnesota, and I think the SOL here is 6 years. That means that I still have two years left on the Palisades (date of last payment March 2003) and considerably more on the others. So perhaps I'll just leave them be, since I have no lates in the past 12 months, and my CL percentages (thanks to two new TLs) will be under 30% within the next two months and should be <10% by the end of summer. I'm pretty sure I'll hit my goal either way by end of summer.

So I wait until I get closer to SOL, then do what? Take up the challenge again, armed with the leverage that they're running out of time to collect? Offer a PD? Or just continue to let them sit and eventually fall off the CR?

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No, you wait until the SOL expired, otherwise they may run to court in a last desperate measure to get a judgment against you.

If you can afford to wait (no big credit purchases), then waiting out the 7 years is fine. It's the easiest, and least risky.

Don't PFD unless you HAVE to pay (upcoming mortgage application, etc).

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No, you wait until the SOL expired, otherwise they may run to court in a last desperate measure to get a judgment against you.

If you can afford to wait (no big credit purchases), then waiting out the 7 years is fine. It's the easiest, and least risky.

Don't PFD unless you HAVE to pay (upcoming mortgage application, etc).

Or after the SOL has expired, if they are still attempting to contact you, send them a FOAD. Eff off and die.

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Okay, I like it. Thanks folks. Since I'm close to reaching my goals, I think I'll leave them be and let my current payment history and new TL's help me get where I want to be. I also did some research into the SOL for Minnesota, as I've read that any payment might reset the SOL clock depending upon the state, yadda yadda yadda.

6 years for credit cards, and the following definition of how MN law views the SOL is as follows (for any in teh great white north who might be following this thread):

A statute of limitations is a law that sets forth the maximum period of time, after certain events, that legal proceedings based on those events may be initiated. For debt, the statutes of limitation apply to the maximum period of time after a consumer has become delinquent on their payments. The key point to remember is that you are considered delinquent not from the date of your last payment, but rather the day after you have gone past due. In other words, if you made your last payment on 3/3/03 and your next payment was due the same day of the next month, the statute of limitations on the debt would not start running until 4/4/04. The statutes of limitations vary from state to state and depend on the type of debt and where the original transaction took place (i.e. if you took the loan out in California but currently live in Minnesota, the applicable statutes of limitations would be California’s.)

From http://www.franklindebtrelief.com/debt-help-minnesota.html

So I'll let them sit and wait for them to begin going SOL in another sense in the next couple years. Thanks again.

The only caveat is I do plan to refi in the next six months or so...might they require I payoff these folks? If they don't, I'll plan to leave it as is, if they do...well...I don't have any plans to request any more loans, ccs, or mortgages any time within the next couple years thereafter....

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I just re-fi'ed in January and they didn't require me to pay them off because I told them that that was the reason for the re-fi. I guess it all depends on the lender. I've been with the same lender for 7 years, so I don't know if that played a part in it or not. Good luck hittin' 620!

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Welcome from a fellow Minnesotan.. Just a heads up, the only way to re-set SOL in Minnesota is a new written agreement. Making a payment, or a CA posting a alleged payment (a new way of re-seting SOL) does nothing for them in Minnesota.

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I thought they had to sue you in the state you currently reside.

They can sue you in your current state or the state the debt was incurred, however, if they file in a different state you can simply file a motion to dismiss due to jurisdiction requiring that the suit be filed in your current jurisdiction which would likely be granted.

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