Questions on Statue of Limitations, and debt validity when removed from credit report

[MustardDemon]

Hello,

My girlfriend (in colorado) is currently in a situation where she is being sued. The issue is essentially, that she incurred a medical debt of $971 in January of 2001. At some point it was placed on her credit report showing she owed $971, in 6/05 she paid the debt and then disputed it with the credit bureau who then removed it from her report. Now 2 years later the collection agency is suing her for interest on the debt.

I have 2 questions

1. The statute of limitations in colorado for these types of debt is 6 years, does the fact that she paid off the debt reset the statute of limitations? Or is this a time barred debt?

2. Does the fact that the credit bureau removed the record, which I assume means they contacted the collector, help in any way to show that the debt was disputed and never verified?

Any help at all would be tremendously appreciated,

Thanks,

[mrsmilitary]

When she paid the debt, did she pay the OC or the CA?

[MustardDemon]

She paid the CA the balance showing on the credit report

[thomassl]

Who did she pay and did she get a receipt showing the balance paid in full? Also, Colorado is one of the states in which payment does not reset the SOL. At this point, the credit bureau is not the problem. She needs to check her records as to who she paid and did she have a statement indicating they would contact the credit bureau to have it removed.

[MustardDemon]

All she has is the cancelled check for the payment

[thomassl]

All she has is the cancelled check for the payment

Once more the questions is....Who did she pay?

[MustardDemon]

She paid the collection agency proffesional Affiliates

[nascar]

Colorado is one of the states in which payment does not reset the SOL.

Why would you assume that without checking first?

A part payment of a debt will start the limitations period running anew. Drake v. Tyner, 914 P.2d 519, (Colo.App., 1996). See C.R.S.A. §13-80-113.

[thomassl]

The Fair Debt Collection Practices Act prohibits a collection agency from collecting interest on a debt unless interest was claled for in the wirtten agreement between you and the original creditor or interest is permitted under your state's law. Colorado has an interest rate of 8%. Since the SOL for Colorado is 6 yrs. and payment does not reset the SOL, it would appear that she would not be responsible for this interest. Hopefully others will chime in with their opinion as well.

[thomassl]

Why would you assume that without checking first?

Nascar, I did not assume it. I did check it!

[nascar]

She paid the collection agency proffesional Affiliates

1) Is this the same CA she paid before?

2) Did the CA give her any reason to believe the prior payment was NOT payment in full?

3) What is the basis for the interest they are trying to charge her?

[Freak]

No withstanding the questions above: Don't forget, just because an item is removed from a CR, does not mean the debt is not valid, or that a CA or OC can't attempt to collect on the debt, even after the SOL. The SOL only protects (notice I didn't say prevents) you from legal action.

Removal from a CR or a debt outside the SOL does not render the debt "invalid."

[Recovering Attorney]

To answer your question, the fact that this came off her CR means nothing legally. Sounds like she has one or two affirmative defenses. one being that she paid it off.

If they are trying to collect something that is not owed, that might be the basis for an FDCPA suit, but do not think it as a defense.

[nascar]

Nascar, I did not assume it. I did check it!

But partial payment DOES restart the SOL in Colorado. Where did you get your information from?

[MustardDemon]

This is from my girlfriend directly

"Yes this is the same CA that I paid. I believe the only way they are trying to get their interest is by misrepresenting the principal balance saying that I owe $194 principal and $140 in interest"

I think this means that of the $971 she paid they took $194 as interest, and left it as principal.

[MustardDemon]

Hello,

I just wanted to say thanks so much to everyone for their help. It doesn't look like we have too much of a legal leg to stand on, so I will go about settling the issue with the CA.

Thanks so very much to everyone again, your willingness to help has reaffirmed my faith in humanity, and that is worth more than any dollar amount.

Thanks again,