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How do you determin SOLs?


Mirrasi
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I'm reading through all he newbie stuff on getting started.

1. Which state do you go by for SOLs? Most of my credit issues are very old when I lived in Fl. But now I live in ID. Do I like up the SOLs in FL or ID?

2. How can I determine my date of last activity if I don't have any statements on these old accounts? I think many of my debts are at 7 years or over, but I have no way of knowing.

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You would normally go by the state in which the debt was originally made, in this case FL. Here it really wouldn't matter since the SOL is the same in FL as well as ID.

I think you're confusing DOL with DOFD. You want to worry about Date of First Delinquency because this is the date the clock starts at. As for finding out when it is, if you have a copy of your CR, you can call the CRA and ask them what the DOFD is. They have this information and they will tell you what it is.

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Don't forget to add that even if you get out of a lawsuit due to SOL another CA can still come after you. The SOL is only good as a defense if you're sued. This is known as a zombie debt. There are only 2 states that this can't happen in and they are WI and MS.

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Hmmm, this is all so confusing to me. If they can some back after you or show up again after it being gone from the CR, what's the point? :confused:

I'll have to read some more but I'm having a very hard time understanding a lot of this. I thought that stuff have to roll off your credit after a certain amount of time if you haven't done anything with it. If it can come back, how would you ever clear your credit?

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Okay, I must have been tired last night, lol. I went back and realised I missed the whole second paragraph on getting things deleted and sueing.

But question, so if you get one CA company to remove the debt from your CR, can another CA just buy the account and put it up?

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Yes, the debt can be sold over and over. The thing is, a debt never goes way unless it's paid or forgiven. Just think about this way, if a friend borrows $1000 from you and doesn't pay you as agreed. They start to avoid you and may even move away. Now, it could be 10 years later. If you saw that person walking down the street, do you think that person should still pay you your money?

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So do you just continue to fight them over and over in a neverending battle? Or do you just pay it. Everything I am reading says not to pay on any old collections. That's where I get confused on everything. If you're not supposed to pay very old debts becaused they will roll off and paying them will actually hurt your credit.....but then someone else can just put it back on. It sounds neverending.

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So do you just continue to fight them over and over in a neverending battle? Or do you just pay it. Everything I am reading says not to pay on any old collections. That's where I get confused on everything. If you're not supposed to pay very old debts becaused they will roll off and paying them will actually hurt your credit.....but then someone else can just put it back on. It sounds neverending.

"Everything I am reading says not to pay on any old collections."

Absolutely correct!

"and paying them will actually hurt your credit....."

Absolutely correct! Once an account gets charged off, it takes about 2 years for the corresponding tradeline to not affect your credit/FICO score.

"It sounds neverending."

Not really. It ends when the SOL ends. Also, keep in mind that you never should pay a debt that is owned by a JDB.

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Oh I see! So they can keep sellinvg the accounts and putting it back, but not after the SOL ends.

You guys rock! I have been so conofused by all of this for so long. I really wish I had found this place sooner. xdancex

No, JDB's can keep selling the accounts/debts forever and ever. But, once the SOL expires, you use that as a defense in court should you ever be sued.

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"Everything I am reading says not to pay on any old collections."

Absolutely correct!

I would have to disagree with this one. If you are trying to purchase a house, nowadays some mortgage companys will require all collections to be paid before they will consider you for a new mortgage loan. Also by not paying, depending on the amount that you owe, as Swirl mentioned earlier, you run the risk of being sued.

As some people have also mentioned here on the forum, just because you may have a defense of SOL, the judge may STILL rule against you. Either you win or lose the case, it will still go on your credit report and can still result in a credit score drop.

As you can see, by not paying a collection it can turn into a bigger mess than what you originally had. I for one am all for paying off CA accounts if you can negotiate a PFD, otherwise, there is no incentive to pay it off if they won't remove it from your CR. This is why, it is recommended that you don't pay a CA. In general, everyone should really try to pay their bills if they are able to. ;)

"and paying them will actually hurt your credit....."

Absolutely correct! Once an account gets charged off, it takes about 2 years for the corresponding tradeline to not affect your credit/FICO score.

This is correct but if you are able to get the account removed from your CR with a PFD, you do get a substantial score jump in that 2 years. I recently had a 30 pt jump on a collection account that I paid off and it was removed. The account was 18 months old with the CA so it was a pretty nice surprise.

"It sounds neverending."

Not really. It ends when the SOL ends. Also, keep in mind that you never should pay a debt that is owned by a JDB.

This is not correct. As long as the account remains outstanding and you live in WI or MS, the account can be sold over and over and over. This means that each time they will try to reage and report the account on your CRs and if the amount is substantial, they can try to take you to court for payment each and every time.

To you, this means you have to deal with the phone calls, dispute with the CRAs to get the CA accounts off your CRs every time and have to respond as well as show up for court every time they try to sue you for the amount. Then, if you happen to miss one of the court dates and they are granted a default judgment, that will never go away and may result in garnishment.

Yes, the SOL may mean that the account is too old to enforce payment but it doesn't mean the debt is wiped clean.

Hope this helps.

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I agree with Isis on her first point and also want to add something. There are two types of people who will tell you to not pay CA's on old debts: the people who don't believe in paying their owed debts because they think they can have them removed anyways and the people who believe that you should be 100% sure that the debt is yours prior to paying.

I fall more into the second category of people. Why? Because if you can obtain proof that the debt is yours, or if you know full and well that the debt is yours without obtaining proof, then you should pay what you rightfully owe someone regardless of the length of time that has passed...Provided that the amount being collected on is accurate. I also believe in attempting to work with the OC on the balance due prior to paying a CA.

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I agree with Isis on her first point and also want to add something. There are two types of people who will tell you to not pay CA's on old debts: the people who don't believe in paying their owed debts because they think they can have them removed anyways and the people who believe that you should be 100% sure that the debt is yours prior to paying.

I fall more into the second category of people. Why? Because if you can obtain proof that the debt is yours, or if you know full and well that the debt is yours without obtaining proof, then you should pay what you rightfully owe someone regardless of the length of time that has passed...Provided that the amount being collected on is accurate. I also believe in attempting to work with the OC on the balance due prior to paying a CA.

Agreed. :clapper:

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As some people have also mentioned here on the forum, just because you may have a defense of SOL, the judge may STILL rule against you. Either you win or lose the case, it will still go on your credit report and can still result in a credit score drop..

A judge can still rule against you if you have a SOL defense, but if you look at court statistics, they almost never do. And, if you win the case based on that, there are remedies to having the corresponding TL removed.

I for one am all for paying off CA accounts if you can negotiate a PFD, otherwise, there is no incentive to pay it off if they won't remove it from your CR. This is why, it is recommended that you don't pay a CA. In general, everyone should really try to pay their bills if they are able to. ;)..

Absolutely correct! The problem is negotiating a PFD can often times be extremely difficult. Otherwise, agreed! :)

This is not correct. As long as the account remains outstanding and you live in WI or MS, the account can be sold over and over and over. This means that each time they will try to reage and report the account on your CRs and if the amount is substantial, they can try to take you to court for payment each and every time.

Re-aging is illegal! Anytime this happens, you must file disputes or complaints to correct the false information, and/or file a lawsuit against whomever is reporting false information.

Yes, the SOL may mean that the account is too old to enforce payment but it doesn't mean the debt is wiped clean.

Agreed! Many, many debts will never be wiped clean actually-it seems financial bailouts are only tailored for....

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Thank you all so much. Okay I am still confused on several issues.

1. I have two types of debts. I have medical debts that are 2-3 years old. I absolutely owe these guys, and these are the CA's that will come after me. I plan to pay them.

2. I have very old debts that are 6-7 years old. These CA's never bother contacting me. But after trying a dispute with the CRAs, the bad TLs are still there.

So I guess by what you all are saying, SOLs don't really matter to me. It's unlikely these CAs will come after me. What I want to know is, if the debts are from either FL or ID, do they HAVE to roll off after a certain amount of time? I've always heard the "7 year rule". Or can these CA's continue to relist these debts after 7 years? I.e. will it be neverending?

My other question I am confused on when reading the newbie stickies....CA's don't have to answer your DVs. BUT, if they ignore you, yet still tell the CRAs that your debt is valid (i.e. ignoring me but not the CRAs), then they will be in violation? Am I understanding that part correctly?

Edit: I thought of a third question. IF the debt has to come off your crerdit report after a certain amount of time ( 7 years??), what time does it start from? The DOFD or the date of last payment?

Thanks so much!

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This is not correct. As long as the account remains outstanding and you live in WI or MS, the account can be sold over and over and over. This means that each time they will try to reage and report the account on your CRs and if the amount is substantial, they can try to take you to court for payment each and every time.

I think you're confused ...or your post contains some typos.

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Thank you all so much. Okay I am still confused on several issues.
I would be too, with all the conflicting information.
I have two types of debts. I have medical debts that are 2-3 years old. I absolutely owe these guys, and these are the CA's that will come after me. I plan to pay them.
Nothing wrong with that. Just make sure that you send your money directly to the doctor or hospital to whom you owe the money. Send the CA a copy of the check if you feel the need, but never trust a CA to handle your money.
I have very old debts that are 6-7 years old. These CA's never bother contacting me. But after trying a dispute with the CRAs, the bad TLs are still there.
You can try disputing directly with the CA, requesting an FCRA investigation, whatever. If the CA's start to bother you, simply send them a cease communication (C&D) notice and forget about them. Otherwise, debts like these are good practice in dealing with CA's. You hold all the leverage. They're going to fall off your report soon, anyway.
What I want to know is, if the debts are from either FL or ID, do they HAVE to roll off after a certain amount of time? I've always heard the "7 year rule". Or can these CA's continue to relist these debts after 7 years? I.e. will it be neverending?
No, it will not be never-ending. Whether you live in Florida or Idaho or anywhere, the reporting period for negative tradelines on your credit report is 7 to 7-1/2 years. It will drop off and the odds of seeing it return are actually pretty slim. Now that doesn't mean that some other collector might not try something illegal, but don't lose sleep over it.
My other question I am confused on when reading the newbie stickies....CA's don't have to answer your DVs. BUT, if they ignore you, yet still tell the CRAs that your debt is valid (i.e. ignoring me but not the CRAs), then they will be in violation? Am I understanding that part correctly?
Yes, and no. To have any legal effect, your DV must be timely. That is, it must be submitted to the CA within 30 days of receipt of initial communication with the debt collector. Regardless when you send your DV, a collector is under no legal obligation to respond, however, they cannot continue collection efforts against you if your DV is timely - unless they provide verification under 1692g(B).
IF the debt has to come off your crerdit report after a certain amount of time ( 7 years??), what time does it start from? The DOFD or the date of last payment?
It begins with the DOFD, or Date of First Delinquency. That date is cast in stone (unless you make the account current again) and is not supposed to change no matter who buys, sells, reports, or otherwise tries to collect the debt. Some will attempt to change it, but again, until that happens, it isn't worth worrying about.
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There are two types of people who will tell you to not pay CA's on old debts: the people who don't believe in paying their owed debts because they think they can have them removed anyways and the people who believe that you should be 100% sure that the debt is yours prior to paying.

I want to add a third type to your list because I don't fall into either of the two you have listed.

I will never send money to a CA simply because I do not believe that they will handle the payment properly and legally. If I'm going to pay someone, I'm going to pay who I owe, not some third party.

Now, once the original creditor has sold the account, all bets are off. You'd better be willing and able to prove you have a legal right to payment or you won't see a dime.

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Thank you so much Nascar. So on these very old debts I was going to DV, they are under no obligation right? Sounds like my only option with them is to either make a PFD deal or wait for roll off.

Nothing wrong with that. Just make sure that you send your money directly to the doctor or hospital to whom you owe the money. Send the CA a copy of the check if you feel the need, but never trust a CA to handle your money.

You know what's wierd? It must be different for medical. Because the doctors and hospitals actually refuse to take my money. Ive contacted them directly and tried. They say it was charged off and I MUST pay it to the CA. All of those CA's are locally here in town too and they are the ones who will go after judgements (two of them have already and I've delt with those). Anyway, I just thought it was wierd that I HAD to deal with a CA. Must be a medical thing.

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They say it was charged off and I MUST pay it to the CA.
Unless the original creditor has given you notice that the account has been sold, and not simply charged-off, such a statement is simply a lie.
All of those CA's are locally here in town too and they are the ones who will go after judgements (two of them have already and I've delt with those).
A CA who is collecting on behalf of a creditor has no legal standing to sue you. If they do, and it sounds like you have already experienced this (how did it end?), you have grounds for a very nice counter-suit against them.

Debt collectors, some of them anyway, actually believe that they have a right to do this. Browse some debt collector websites and you'll see that they even advertise it as one of the services they offer. Regardless of what they think, or what kind of agreement they think they have with a creditor, the fact is that the right to sue cannot be assigned - not without a complete, irrevocable assignment of the original creditor's entire interest. That notice of assignment also happens to be the same one that must be given to you before the parties no longer have to recognize your payments to the original creditor.

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Well, Im not too sure of the terminology so the accounts probably were sold and not charged off. I'm not sure to be honest. All I know is that I sent a C&D letter to the CA's and the contacted the OC to pay. They told me I could not pay them and would have to send payment to the CAs.

The CA's have acted a lot different than the CA's on my old debts. They've only called once or twice. Beyond that they've sent letters. My older CA's actually harrassed me but back then I didn't know any better.

As for being sued. I was served twice with ywo of the medical CAs. I had a court date and case number. Someone explained to me that they were taking me to court to get a judgement, and then after that they would come after my paycheck. I really wanted to avoid the embarrasement of them coming after my paycheck.

The first time I paid it immediately. It now shows on my CR as a public record that was paid. :( The second time it was a large amount. An attorney-friend helped us out on that. He negotiated a payment, we paid it, they dropped the case and removed all negative issues from our file.

There are still two more medical CA's to deal with. They are both large sums so I've been paying them $10 a month just to avoid that happening again. I sure wish the OC's would let me pay them.

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Have you tried to just send them a payment? I did that by bypassing the CA and they went right ahead and cashed the money order anyways. They can say no to payments all the time but if they take the money order/cashier's check and cash it then there can be no attempts by a CA to collect.

Pay by money order because you can trace it to see if it was cashed and if they do return it you can get your money back. Never get a money order/cashier check from your own back, get it from a different bank or check cashing center that can trace them and are insured.

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