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Midland - Chase/SOL?


mag2008
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     I recevied a phone call from Midland regarding an old Chase account.  I immediately sent a DV letter using the form letter from this website.  Their response was a letter stating that they are "requesting immediate payment of the balance in full" along with copies of statements form 3/2009, 4/2009 & 5/2009.  There are no charges or payments on those statements and I have not made any payments since then.

     I pulled my credit report and the OC reports the account balance is zero, that is was sold and correctly reports that it was opened in 1978. Midland reports the balance on the 5/2009 statement but says that the account was opened in April 2011 which is obviously incorrect.

     I live in Louisiana and from what I can find, the SOL is 3 years.  Should I send them a letter stating that the debt is outside of the SOL? 

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I recevied a phone call from Midland regarding an old Chase account.  I immediately sent a DV letter using the form letter from this website.  Their response was a letter stating that they are "requesting immediate payment of the balance in full" along with copies of statements form 3/2009, 4/2009 & 5/2009.  There are no charges or payments on those statements and I have not made any payments since then.

     I pulled my credit report and the OC reports the account balance is zero, that is was sold and correctly reports that it was opened in 1978. Midland reports the balance on the 5/2009 statement but says that the account was opened in April 2011 which is obviously incorrect.

     I live in Louisiana and from what I can find, the SOL is 3 years.  Should I send them a letter stating that the debt is outside of the SOL?

They bought the account in 2011, that is why it says April 2011. Does you credit report give the date of last payment? What date does the original creditor list it as closed?

If it is more than 3 years, send them a refusal to pay, and a cease and desist. They will still report it on your credit until 7.5 years have passed from the default date, but they can't sue you, and they can't continue to try and collect after you send the letter.

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You need to figure out when your last payment, or default date was.  On your credit report, original creditor, look down at the bottom of that part of the report where it lists the month and year.  Doe it show you as 120 days past due in 5/09?  If not where does it show you past due? 

 

You can then cross reference with your bank records, go pull the records for the month that shows you not past due, and then a few months worth after, if you made no payments, and account shows 120 days past due on CR, you can venture a guess as to your last payment, or 1st payment missed.  Your cr. report would say 30 days past due, then the next month 60 days past due, then the following month 120 days past due. 

The default month and year would be when it became 30 days past due if it shows no current payments since then.  Make sense?

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The credit report that I have only shows 2 years back.  I went through my records and the last payment I made was in November 2008.

 

I received a settlement offer yesterday that states at the bottom:

 

"The law limits how long you can be sued on a debt.  Because of the age of your debt, we will not sue you for it.  If you do not pay the debt, we may continue to report it to the credit reposting agencies as unpaid."

 

They obviously realize that this is outside the SOL.  Does this give me an advantage in settling this for a minimum amount or is it best to let it go for 2 more years?  This is the last thing left for me to get cleaned up.

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Send them a letter you refuse to pay and never contact you again. DO NOT settle it, if you do, you will reset the SOL, and say you settled the debt for 25 %, they will turn around and sell the remainder off, and it will have a fresh sol they can sue you on. It is going to stay on your credit for a total of 7.5 years any, and a debt that old is not going to hurt you much if your other accounts are in good standing.

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That's what I was thinking.  There is a sample letter here for Zombie debt.  is that the wording I should use - it asks to remove the debt from the credit report - what are the chances of that happening?  Or is a simple, I refuse to pay/don't contact me suffiicent?

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The debt can (and most likely will) stay on your credit report if it is legitimate. The SOL simply means they can not sue you for it.

 

If you send a refuse to pay and do not contact letter as Shellieh98 suggested and they contact you again it is a violation and they will end up paying you.

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Whether or not they can answer your debt validation letter with a request for payment in the same mailing is not known to me. I have not seen any case law to support or deny it. I would have to research this. one would think they would have to send those in a separate mailing after the dv is answered. 

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  • 2 weeks later...
  • 2 weeks later...

I am in a very similar situation with Midland. Old HSBC acct, in Cali and SOL has past (date of last activity/first delinquency is March 2009).

 

But, a recent mortgage tri-bureau report has acct with Midland on my EXP and EQ listed as Installment (instead of Revolving) and a 'Past due' amount and "recently reported". It's not just quietly aging!!!

 

The mortgage broker said that I would have to pay it off since it is more than $1000 (for FHA I think). I'm not in escrow or anything right now, so I have time to deal with this and I definitely don't want to pay it.

 

I have received settlement offers in the mail but I don't know if I should send zombie debt letter, validation letter or settlement offer of my own.  TU deleted it when I disputed "not mine/no knowledge of" but the other two CBs verified it.

 

Best suggestion??? Thanks

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The problem you are likely to have is that Midland will know that you are trying to get a mortgage.  JDBs generally have notifications set up with the CRAs.  If this is the case, you will have little leverage.  The SOL that has passed is for filing suit on the debt; it can be reported for 7 (or 7.5) years from DOFD.  Find out if your mortgage lender will be OK with you settling the debt, or if they will require it to be paid in full.

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The problem you are likely to have is that Midland will know that you are trying to get a mortgage.  JDBs generally have notifications set up with the CRAs.  If this is the case, you will have little leverage.  The SOL that has passed is for filing suit on the debt; it can be reported for 7 (or 7.5) years from DOFD.  Find out if your mortgage lender will be OK with you settling the debt, or if they will require it to be paid in full.

@CG in TX - I think they will require for it to be settled in full.  

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