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CA purchasing account & SOL starts all over?

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I live in IN. SOL -7 years

Summary-I purchased a car from Americredit years ago, the dola was jan 2000. (Voluntary REPO). So rightfully this should have been removed in Jan 2007. In 2006 Palisades sent me a letter saying they purchased this account. Since then I have recieved letters from several places collecting for them. I have NEVER disputed any of this or tried to get it off my report- I didnt want to mess it up, and wanted to wait until I was fully loaded and knew exactly how to handle this one before I started because it is for $9,000 and I just did not want to screw it up. I also have never agreed on the phone to make any type of arrangements on this account since Jan 2000. Please point me out in what direction to go. I have a few specific questions.

Questions

1. If this was purchased by CA can they legally start the dola again? If so WHY

2. Can Americredit AND Palisades both report on my CR?

3. Should I hire one of those NACA attorneys for this or can I handle it myself?

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1. If this was purchased by CA can they legally start the dola again? If so WHY
No.

2. Can Americredit AND Palisades both report on my CR?

Yes, until Americredit's entry expires (and after that, neither can report). However, Americredit's entry should be coded to show a zero balance.

3. Should I hire one of those NACA attorneys for this or can I handle it myself?

Maybe there are some Indiana experts around here. States vary in how they handle the SOL defense when it is asserted (for instance, Kentucky routinely ignores it and gives the creditor a judgment), and in what can toll and/or restart the SOL clock from zero.

Know where you stand or hire an attorney.

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This is called "re-aging".

Let me save you the time.

"Re-Aging" is when the original creditor agrees to a repayment program with a debtor after a chargeoff and returns the account to current status. Note the emphasis. Only the original creditor can do this, not a collector or a junk-debt-buyer.

The regulations are mandated by the FDIC and are called the "UNIFORM RETAIL CREDIT CLASSIFICATION AND ACCOUNT MANAGEMENT POLICY." The relavent part related to re-aging reads:

Re-aging of open-end accounts, and extensions, deferrals, renewals, and rewrites of closed-end loans can be used to help borrowers overcome temporary financial difficulties,

{{6-30-00 p.5083}}such as loss of job, medical emergency, or change in family circumstances like loss of a family member. A permissive policy on re-agings, extensions, deferrals, renewals, or rewrites can cloud the true performance and delinquency status of the portfolio. However, prudent use is acceptable when it is based on a renewed willingness and ability to repay the loan, and when it is structured and controlled in accordance with sound internal policies.

Management should ensure that comprehensive and effective risk management and internal controls are established and maintained so that re-ages, extensions, deferrals, renewals, and rewrites can be adequately controlled and monitored by management and verified by examiners. The decision to re-age, extend, defer, renew, or rewrite a loan, like any other modification of contractual terms, should be supported in the institution's management information systems. Adequate management information systems usually identify and document any loan that is re-aged, extended, deferred, renewed, or rewritten, including the number of times such action has been taken. Documentation normally shows that the institution's personnel communicated with the borrower, the borrower agreed to pay the loan in full, and the borrower has the ability to repay the loan. To be effective, management information systems should also monitor and track the volume and performance of loans that have been re-aged, extended, deferred, renewed, or rewritten and/or placed in a workout program.

Since only the original creditor can restructure the loan's orignal terms and return it to a non-default status, collectors and junk-debt buyers cannot re-age an account by the legal definition of it.

You'd think that after seeing NCO get the crap knocked out of it by the FTC for re-aging accounts that others would realize their peril if they continue to do so themselves.

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"Re-Aging" is when the original creditor agrees to a repayment program with a debtor after a chargeoff and returns the account to current status.

True. Just to make things very confusing, however, it also refers to the practice of assigning a debt to another creditor to "give life" to a credit reporting that should have expired. There are several citations in the link I provided. This post in particular is helpful: http://www.myfaircredit.com/forum/viewtopic.php?t=1665

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For any of you interested in the type of "re-aging" that I was referring to, there is an excellent discussion of the topic in NCLC's recent report: http://www.nclc.org/issues/credit_reporting/content/automated_injustice.pdf

The discussion begins on page 11. Of particular interest is the Gillespie case cited in footnote 27.

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