zibraham

CA threatening to sue right before SOL expires

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I have a $6,000 debt in Michigan for an early lease termination fee in 5/08. Debt has been validated.

CA called me and we couldn't work out an arrangement. They refused a PFD.

CA later called demanding payment and interest. We told CA that since they marred our credit they won't get a dime and we will wait out the 7.5 years from 5/08 for it to fall off credit report.

CA later called and threatened to sue in 4 years. Why would they do that?

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I have a $6,000 debt in Michigan for an early lease termination fee in 5/08. Debt has been validated.

CA called me and we couldn't work out an arrangement. They refused a PFD.

CA later called demanding payment and interest. We told CA that since they marred our credit they won't get a dime and we will wait out the 7.5 years from 5/08 for it to fall off credit report.

CA later called and threatened to sue in 4 years. Why would they do that?

Because they want you to pay them...that's how they make money. That's why CAs do anything and everything that they do; to get you to pay them.

EDIT:

By the way, the SOL in MI is 6 years; not 4.

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Maybe I didn't state my question clearly enough.

I know they want me to pay them, but what would waiting 4 years to sue me do? (extend time the collection would be on credit report?, garnish wages?, wait for interest to build up?, etc...)

Thanks for the quick response though

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It's possible that the CA thinks that by expressing a future intent to sue you, as opposed to a present intent to sue you - while never intentending to do so - they can avoid liability under the FDCPA for such threats.

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Because they can. A lot of lawsuits are filed within days of the SOL expiration. They are going to place everything in a nice file- and hope that any defense you may have is either lost or forgotten. They are probably going to rack up interest and attorney fees ( if applicable). look at there point- Why would you say you were going to wait 7.5 years- and not pay a collection they consider legit.

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Maybe I didn't state my question clearly enough.

I know they want me to pay them, but what would waiting 4 years to sue me do? (extend time the collection would be on credit report?, garnish wages?, wait for interest to build up?, etc...)

Thanks for the quick response though

My guess would be that claiming they'll sue you in "four years" makes it much more difficult for your mother to sue them for making false claims.

It's a violation of the FDCPA to do things like claim you are going to sue the debtor when they have no intention or ability to carry through with their threat (if they do have the intent and ability then it's not a violation).

However, if they claim they'll sue in four years; you'll have to wait four years to know if they were just blowing smoke or actually meant it!

Frankly, I suspect that, at least as far as this CA goes, it's an empty threat but keep in mind that the creditor certainly could sue and for a debt that large, I'd be a bit surprised if they don't eventually do so.

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It's possible that the CA thinks that by expressing a future intent to sue you, as opposed to a present intent to sue you - while never intentending to do so - they can avoid liability under the FDCPA for such threats.

and probably can avoid such a charge wouldn't you say? :)

At the very least, substantiating it as a violation would be problematic.

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I don't care about the money. They can have it (once I get it). I just want to protect my credit report as much as possible. They refused PFD or installment plans, so I figured once they put it on my report I just wouldn't pay it and let it fall off in 7.5 years.

Once they sue me, will the reporting time on my credit report be extended? Will there be a new TL on my credit report?

If they win the future lawsuit, once I pay the debt will that payment extend/reset the time they can report to the CB?

What if I refuse to pay even after they sue?

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I don't care about the money. They can have it (once I get it). I just want to protect my credit report as much as possible. They refused PFD or installment plans, so I figured once they put it on my report I just wouldn't pay it and let it fall off in 7.5 years.

Once they sue me, will the reporting time on my credit report be extended? Will there be a new TL on my credit report?

If they win the future lawsuit, once I pay the debt will that payment extend/reset the time they can report to the CB?

What if I refuse to pay even after they sue?

Something "dropping off" (or for that matter never appearing) on a credit report has absolutely nothing to do with the validity of the debt and/or whether they can/will sue and/or whether they would win their suit.

If they sue you; you will have the opportunity to defend yourself in court. If they win their suit, there will be a judgment entered against you which can be reflected on your credit report for the life of the judgment (ten years in most states and most states allow judgments to be "renewed" which can more than double the life of the judgment).

With a judgment, depending on your state's laws (I'm no expert on Michigan laws); they can freeze/empty bank accounts, garnish wages, put liens against real estate, etc.

Generally speaking, a judgment is not a pleasant thing to deal with and there are few things more damaging to your credit report.

If you owe the money and have the money, I'd advise you to pay them even if they refuse to do a PFD (which they have no obligation to do anyway)...a bad debt/collection which has been paid will have far less impact on your credit report, especially long term, than a judgment will.

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