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Old Collections...


stephlynne
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Most of my collections are from a long time ago, like 2004. Does how old they are make any difference when disputing? The CA are still reporting to the CRA even though they have stopped sending me letters (or at least I have not received any recently). I'm not sure how to handle this!! When I'm writing the dispute letter do I have to reference some kind of correspondence from the CA?

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Welcome! When an account ends up in collections many collection agencies start reporting them to the Credit Reporting Agencies in hopes that this will move the consumers to pay up. The problem is most of the collection agencies practice illegal tactics when trying to collect these debts. Some of these debts are legally collectable up to a certain time after they have gone delinquent. Once the time is up they are considered no longer "collectable" in most states. Collection agencies know this and they still try to collect in hopes of a consumer that does not know any better will quickly pay!

Best advice I have for you is to read this.

http://www.creditinfocenter.com/repair/Repair.shtml

And in the meantime, do NOT talk to any Collection Agency on the phone. They will intimidate and harass you and make you feel that the only way out is to fork over all your money and assets. NOT! Familiarize yourself with the FDCPA and the FCRA, you can find the links at the top of the forum. These documents will guide you along process of repairing your credit report!

Good luck. :)++

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Thanks, I actually have read all of that, but I still have a lot of questions! It's a lot of information to process, and I know it will take a while to get this all straightened out.

Are the debts beyond SoL? If not, they may renew their collection efforts if you dispute.

-r

The SOL is not up on any of them. My CR says that they are scheduled to be on there until at least 2011. When I look at the 'date last reported' they are all pretty recent. I'm not sure if I should dispute with the CRA first since they are all so old or what to even write!?

Thanks so much for all of your help guys!! :mrgreen:

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Thanks, I actually have read all of that, but I still have a lot of questions! It's a lot of information to process, and I know it will take a while to get this all straightened out.

The SOL is not up on any of them. My CR says that they are scheduled to be on there until at least 2011. When I look at the 'date last reported' they are all pretty recent. I'm not sure if I should dispute with the CRA first since they are all so old or what to even write!?

Thanks so much for all of your help guys!! :mrgreen:

Disputing could wake a sleeping giant. If they are within the SOL be careful with whom you dispute. You should be in a position to pay off the debt in full if they were to sue you (to avoid a judgment). In a lot of cases, they will sue you regardless of if you dispute or not, but just be forewarned that you may end up in court.

:goodluck:

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So basically disputing really would not be my best option I guess. Should I just try to settle then? I have like $20,000 worth of debt, and most of it is in collections. I went through some rough stuff with divorce etc. (very long story) and now my credit is in the crapper. I don't know what I should do but I know that I can't just let it sit there until 2011!! I definitely want to avoid going to court and having to pay the balances in full, especially because out of all that $20,000 I really only owed like half of it; the rest is basically just their interest and fees.

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SOL by state

http://www.creditinfocenter.com/rebuild/statuteLimitations.shtml

The question is what type of credit is being collected on. If its open ended it's three years in AZ. The best rule of thumb is to take the date of the last payment you made.

Some people use the 180 day rule. That is to add 180 days from the last date of payment, and start your SOL from there. If you use this rule and the SOL has expired your pretty much in the clear. Granted can still be sued, the SOL defense should hold up in a court if you end up there.

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actually the 180 rule doesnt always apply.. the company charges off after that time.. which is an accounting term.. the SOL is from the last day of payment or date of last activity which is most recent.

your settling can be a nightmare as well.. it will NOT change your credit report.. and it can renew your SOL also on top of that. I wouldnt dispute and I would wait until they come after you via suit.. honestly at this point making an agreement can do you much more harm then good and can prolong this on your credit report..

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All of my accounts on my credit report say either 'installment', 'revolving', or 'collection'. I have no idea if these are 'open ended' or not? So, assuming that they are not and the SOL is, in fact, 6 years, you are saying the best thing for me to do would be just to let them all sit there and just wait to get sued or for the SOL to be up?

Oh, and by the way, about this 'charge off' thing, I don't really know what that means, but several of mine say that as well...

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All of my accounts on my credit report say either 'installment', 'revolving', or 'collection'. I have no idea if these are 'open ended' or not? So, assuming that they are not and the SOL is, in fact, 6 years, you are saying the best thing for me to do would be just to let them all sit there and just wait to get sued or for the SOL to be up?

Oh, and by the way, about this 'charge off' thing, I don't really know what that means, but several of mine say that as well...

So I seem to be getting different answers from everyone, so here are a couple examples on my CR:

I have a BofA account that is listed by the OC (BofA) and also listed by the CA:

B of A

Status: Account charged off/Past due 150 days. $2900 written off. This account is scheduled to continue on record until May 2011.

Date opened: 11/2002

Reported since: 12/2002

Date of Status: 01/2005 Type: Revolving

Credit Limit/Original Amt: 2000 High Balance: 5555

Then it lists my acct/balance history (It was 30 days past due as of 8/2004)

Dunstone Financial OC: B of A

Status: collection acct 5555 past due as of 8/2007

Date opened 4/2007 Reported since 5/2007 Date of Status: 6/2007 Last Reported 8/2007 Type: installment

credit limit/ original amt: 5555

This is just one example - It is still within SOL

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Credit cards are open ended accounts.

You need to go back and review your payment records. I hope you still have them.

Find the check date for the last payment made. For example your BofA. It states you were 30 days overdue as of 8/04. You need to go back and see exactly when you wrote your last check on that account. The SOL in many cases can be pinpointed to the actual date on the check. You can also verify on the statements as to the date they posted it. Some SOL go by the posting date. Chances are you made your last payment in June of 04 and went delinquent 8/04.

You are in what I refer to as the "Twilight Zone" If your brought to court it could go either way. As I mentioned I like the 180 day rule, which as pointed out is the accounting requirement by Federal Law for a creditor to legally charge off an account. You can rest assured that once the 180's has gone by your home free.

What ever you do, do not enter into an negotiations or agreement.

I found in my past credit clean up I would start to receive a lot of these demand letters right around the time the SOL kicked in. It's a scare tactic. There trying to make you feel like your at the end of the rope and the clock is ticking, however in most cases the clock is ticking in your favor.

Remember they have to file suit against you within the SOL, not after.

If you have not sent off a dispute letter I would start with that. If you have then I would send off a letter pointing to the facts that your aware of your rights blah, blah, blah, and that the SOL in your state is 3 years on this type of account. That you would be happy to provide the necessary proof in your possession in a court of law with my attorney present, and should you wish to continue pursing the issue you will seek damages under the federal and state laws, blah blah, blah.

The bottom line is the letter won't hurt because if there going to sue you there going to sue you.

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Here is something that worries me even more than the B of A:

I had two student loans through Sallie Mae. they sent me a letter stating that they were going to place the account for collection, which they did. So I called them and they told me I needed to call the company they turned it over to. The company they turned it over to (I was totally clueless when this happened so I didn't know if it was a CA or what) sent me a letter:

Dear Stephanie,

We have good news about your education loan account!! You may qualify for the Loan Rehabilitation Program. If you act now and take the necessary steps to rehabilitate your loan(s), you credit report could improve, and that would make it easier for you to borrow money for the things you need.

Call us and let us help you determine if you qualify. We can also help you complete the Rehabilitation paperwork. We hope that you will take advantage of this offer, which will allow you the opportunity to erase the derogatory guarantor trade-line for this loan from your personal credit file as well as remove it from default. Other benefits of this program are:

1. After six consecutive on-time monthly payments, you will no longer be ineligible for additional student aid due to this default.

2. When rehabilitation is complete, collection costs that have been added will be reduced to a percentage of the unpaid principal and accrued interest outstanding at the time of Loan Rehabilitation.

3. You will regain remaining deferment and forbearance eligibility on the rehabilitated loan(s).

4. You may be able to take as long as nine years to pay back your loan.

To participate in the Loan rehabilitation program and take advantage of the benefits of the program, please call us at blah blah blah. We will review the program with you and assist you with the paperwork to get you started.

Anyway, I was stupid and didn't know any better and set up a payment plan with them. I'm just confused because I thought by doing this it was to avoid having it on my credit, which is not the case because it IS on my CR! I feel like I got suckered!! Is there anything I can do about this or am I basically screwed?

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Credit cards are open ended accounts.

You need to go back and review your payment records. I hope you still have them.

Are you sure that all credit cards are open ended? Because if they are then I'm pretty sure that the SOL is up on all my collections. I'm guessing this is better for me right? If the SOL is up shouldn't I just write a letter to the CRA instead of the CA?

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Are you sure that all credit cards are open ended? Because if they are then I'm pretty sure that the SOL is up on all my collections. I'm guessing this is better for me right? If the SOL is up shouldn't I just write a letter to the CRA instead of the CA?

NO NOT ALL Credit cards are open-ended. Visa/MC/AMEX/Discover can be argued as "written contract"...you sign a slip promising to pay and abide by terms of cardholder agreement.....it has been successfully argued that CCs are considered WRITTEN CONTRACTS.

Store cards (Best Buy, Chevron, Macy's...) ARE open-ended.

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I think you are getting confused here... there are two different SOL.. the SOL that is for reporting (seven years ) and that which is within your state.. three or six years for collections depending on the card.. and they are NOT all open ended. Monkey, with all due respect is wrong on a few counts.

Again it was mentioned you you are home free after 180 days with all due respect is WRONG.. you can be brought to court at any time.. that 180 is simply federal law to charge off the account it has NOTHING to do with collections, or with you for that matter.

You disputing something within the SOL is indeed waking a sleeping giant.. where you would be dormant in the system you could wake it up.. if you are SURE its out of SOL but all means dispute however make DARN sure.. also paying these will restart your SOL in most states and you can bet it will NOT come off the credit report any faster.. my advice.. sit still until you are sure they are out of SOL then dispute.. you will otherwise stick something in the hornets nest.

You could also prolong negative info on your credit report of you start paying on these old accounts. Paying it at this point.. will NOT help you clean up your credit.. strange but true... and even if you do settle you could find the balance sold to another collector who will report it and you get to start over again...

Also again a student loan is NOT under any SOL that can haunt you for life so THAT you want to get settled.. the rest I would wait on.. otherwise you may end up in court... or with more gomers coming out of the woodwork... time is your best friend here.... I wouldnt dispute a thing until your SOL was safe and clear.

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This is what I found about AZ SOL:

12-543. Oral debt; stated or open account; relief on ground of fraud or mistake; three year limitation

There shall be commenced and prosecuted within three years after the cause of action accrues, and not afterward, the following actions:

1. For debt where the indebtedness is not evidenced by a contract in writing.

2. Upon stated or open accounts other than such mutual and current accounts as concern the trade of merchandise between merchant and merchant, their factors or agents, but no item of a stated or open account shall be barred so long as any item thereof has been incurred within three years immediately prior to the bringing of an action thereon.

3. For relief on the ground of fraud or mistake, which cause of action shall not be deemed to have accrued until the discovery by the aggrieved party of the facts constituting the fraud or mistake.

I don't really understand all of what is said here, but what would be "contract in writing"

I also saw something that said open ended accounts are revolving, but some of my store cc's say installment

Okay - I see what's going on - The accounts that are saying they are in collections but still list the OC say 'revolving', but the ones that are actually listed by the CA say 'installment'. Does that make sense?

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