Jump to content

MCM-Rcv'd letter for payment plan for debt they admit is SOL


Recommended Posts

Hi.  I got a call and a few days later a form letter from MCM (Midland) on a debt that is time barred (past SOL by a few years now) giving me 3 payment options.  They admit near the bottom "The law limits how long you can be sued on a debt.  Becasue of the age of your debt, we will not sue you for it.  If you don't pay the debt, we may continue to report it to the CRA as unpaid." 

 

There  was a class action suit against them a few years ago and I later got a postcard from the attorneys saying that I could join and get $1000 off of my account so it didn't make sense to do it.  It would seem to me that if they used the money to pay down the account it would start the clock over again for SOL.

 

1)  Is this some kind of trick or new tactic that they are trying to reinstate it, or file suit later?

2)  The fact that they are trying to collect on a SOL barred debt constitue violations of the FDCPA?

3)  Can they report this to the CRA's still or is it a violation to do that, when does their abilty to report expire?

4)  Is there any action I should take at this point?  A DV letter or Cease and Desist or?

Link to comment
Share on other sites

I think they can still try to collect - suing you is what is time-barred. Yes they can still report it to your credit, the SOL doesn't affect that. They have little leverage on you without the ability to sue, they're exercising what little they have left in the threat to continue reporting it to the CRAs.

 

Did they ever try to sue for this account prior to the SOL running out ?

Link to comment
Share on other sites

They can report on it until the debt reaches 7.5 years from the date of default. They can continue to collect on it until you tell them to stop.

Send them a certified letter. Keep a copy for yourself. Say I refuse to pay this debt ever, and revoke all permission expressed or implied to contact me in any form.

Signed scooter1

After that they can contact you 1 more time to tell you their intentions. After that you can sue them for an fdcpa violation.

They can continue and will report to the credit agencies for 7.5 years after the date of default, then they must stop.

  • Like 2
Link to comment
Share on other sites

I think they can still try to collect - suing you is what is time-barred. Yes they can still report it to your credit, the SOL doesn't affect that. They have little leverage on you without the ability to sue, they're exercising what little they have left in the threat to continue reporting it to the CRAs.

 

Did they ever try to sue for this account prior to the SOL running out ?  No

RyanEX...Thanks.  That is what i was thinking as well. 

Link to comment
Share on other sites

They can report on it until the debt reaches 7.5 years from the date of default. They can continue to collect on it until you tell them to stop.

Send them a certified letter. Keep a copy for yourself. Say I refuse to pay this debt ever, and revoke all permission expressed or implied to contact me in any form.

Signed scooter1

After that they can contact you 1 more time to tell you their intentions. After that you can sue them for an fdcpa violation.

They can continue and will report to the credit agencies for 7.5 years after the date of default, then they must stop.

shellieh98.  Thanks just what I needed to know.  You are awesome.  I may be pretty close to that 7.5 year mark.  I'll have to do some digging to see. 

Link to comment
Share on other sites

^ If you are indeed that close, they're desperate to get something before that 7.5 mark. Makes me smile. All the more reason to tell them to go to hell.

 

 

^^ Shellieh, what would happen at the 7.5 mark? Are they simply barred from continuing to update the tradeline, but it remains on the credit report? Or would the JDB tradeline get dropped from the credit report altogether along with the OCs original tradeline?

Link to comment
Share on other sites

Shellieh, what would happen at the 7.5 mark? Are they simply barred from continuing to update the tradeline, but it remains on the credit report? Or would the JDB tradeline get dropped from the credit report altogether along with the OCs original tradeline?

 

 

Once the TL has been reported for 7.5 years from the date of first delinquency, it's deleted. 

  • Like 1
Link to comment
Share on other sites

Once the TL has been reported for 7.5 years from the date of first delinquency, it's deleted. 

Sorry BV80, just to be clear - the JDB tradeline, which itself is likely not close to being 7.5 years old, is tied to the timeline of the original creditor? So even if the JDB tradeline is say, only 5 years old, it must be deleted when the 7.5 years comes up for the original debt/default?

Link to comment
Share on other sites

I seem to recall reading somewhere that Federal courts have agreed that attempting to collect on a debt as to which the statute has run is a misrepresentation of the legal status of the debt, in violation of the FDCPA.  Anyone have any more information on this?

 

Link to comment
Share on other sites

@RyanEX It does not matter when the JDB bought the debt, or started reporting the initial date of first delinquency it what matters, and it's 7.5 years from then.

 

@scooter1 I do not know of any case law about this.

 

Also before sending a C&D do a DV first, so it's disputed, and you might be able to pull that if the issue a 1099c.

 

MCM

address

Acc# xxx

 

Joe Doe

address

 

Dear Sir:

 

I dispute the validity of this alleged debt on it's entirety, and demand you provide debt validation and name and address of alleged original creditor.

 

Sincerely yours

Me

 

 

It's better to DV them first. Also they do not have to respond to your DV if it's not within the 30 days of their dunning letter, so in 40-50 days if they don't respond send the refusal to pay, is the same as a Cease and desist under the FDCPA.

  • Like 1
Link to comment
Share on other sites

kutuzov,

 

OK, thanks.  I don't think I DV'd them initially but I haven't gotten a call or letter in a few years.   Then they just started up here recently.  They just sent me a statement/payment option.   Good tip on the 1099c thing-thanks.  I suppose that will be an issue down the line.  I did come across some case law for others in the same situation it appears:

 

 

Harry W. Brink v. First Credit Resources, 185 F.R.D. 567, 1999 U.S.Dist.Lexis 15121 [u.S.D.C. Ariz. 1999]

Taylor v. Unifund, No. 98-C-5921, 1999 U.S.Dist.Lexis 13651 [u.S.D.C. N.D. Ill. 1999]

Wright v. Asset Acceptance Corp., C-3-97-375, 1999 U.S. Dist. Lexis 20675 [u.S.D.C. S.D. Ohio 2000]

Canterbury v. Columbia Gas of Ohio, 2001 WestLaw 1681132 [u.S.D.C. S.D. Ohio 2001]

Parretta v. Capital Acquisitions & Mngt. Co., 2003 WestLaw 21383757, 2003 U.S.Dist.Lexis 10070 [u.S.D.C. N.D. Cal. 2003] (held that even a phone call to the consumer in an attempt to collect a time-barred debt stated a claim under the FDCPA)
 

I lost the link where I got these from but thanks whoever it was..

Link to comment
Share on other sites

@RyanEX

 

Sorry BV80, just to be clear - the JDB tradeline, which itself is likely not close to being 7.5 years old, is tied to the timeline of the original creditor? So even if the JDB tradeline is say, only 5 years old, it must be deleted when the 7.5 years comes up for the original debt/default?

 

Yes and yes.   :-)

 

Once the account has been reported 7.5 years after the OC's DOFD, all TLs associated with the account are deleted.

Link to comment
Share on other sites

A quick search and reading of those case laws, only applies if they threaten further collection efforts, like we are transferring the account to our legal team for review, etc, but not for collection itself, and do not say nothing on reporting the debt to the credit reports.

Link to comment
Share on other sites

I seem to recall reading somewhere that Federal courts have agreed that attempting to collect on a debt as to which the statute has run is a misrepresentation of the legal status of the debt, in violation of the FDCPA.  Anyone have any more information on this?

 

@scooter1 I wouldn't waste any time on this crusade. The debt doesn't go away when the SOL expires, only the ability to raise the issue in court.

 

"Here, no legal action was taken or even threatened. As several cases have noted, a statute of limitations does not eliminate the debt;  it merely limits the judicial remedies available." --Freyermuth

Link to comment
Share on other sites

  • 5 weeks later...

Yes, thats true.  The other thing is (not sure if you read the first part of this thread) they are involved in a class action that they are in the payout stages of for not disclosing each time that they are recording or monitoring calls.  So what do they do when they first call me?  They don't tell me it's being recorded.  But in the payout notice they sent they are using the settlement money to pay down each persons account so I would think that in effect that would reset the SOL for all in the class?  What is your take on that?

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.