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does payment reset in Michigan


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As posted in this forum, I have a CC that was charged off to 0 and now is being pursued by a CA. This account went originally 30 days late in jJune of 2008. Sol is 6 yrs, may of 2014 it will come off the report. current CA is most likely going to sue soon. If I decide to," deny this is my ddebt to the CA but to make them go away agree to settle this for a one time payment, will I reset the SOL. I see Michigan is 1 of 18 states that have different law concerning this. I would get in writing that this would be paid with no acceptance of debt on my behalf and no further collection( unless they agree to PFD , in which case I do not need to worry about this). I really want to prevent a suit from being filed

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@rebuildincredit

 

Even if you don't acknowledge that the debt is yours, an agreement to pay would reset the SOL. 

 

600.5866 Revival of barred claim; written acknowledgment of obligor.

Sec. 5866.

Express or implied contracts which have been barred by the running of the period of limitation shall be revived by the acknowledgment or promise of the party to be charged. But no acknowledgment or promise shall be recognized as effective to bar the running of the period of limitations or revive the claim unless the acknowledgment is made by or the promise is contained in some writing signed by the party to be charged by the action.

 

A "promise of the party to be charged" is a promise to pay.

 

Are you planning on sending them a letter that says "I will pay $XXX if you will remove your entry from my CR"?   I don't know for sure that a statement similar to that would revive the SOL because it wouldn't necessarily be a promise, but why risk it?   The debt is outside the SOL in 6 or 7 months and will fall off your CR in a year and a half to 2 years.

 

Is the OC reporting?  If so, paying the CA will have no effect on the OC's entry.

 

Do you know for sure that the CA would agree to delete the entry if you pay a certain amount?  If not, you need to find out.  If they agree to a PFD, get THEM to make an offer IN WRITING (if it's not in writing, it didn't happen) to find out if it's something you can afford.  Their offer would also need to include that the account would be considered settled and paid.

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So, if the CA will not agree to a PAY FOR DELETE, ccould I just send a payment for the total amount owed with a refererence to the account number and not trigger a new SOL. Tthat way it will be off of my report in May of next yr. 7 Yr mark. I would pay by money order with just the account number on the.check. It is only $500. Sure I would would love to settle for less, but unless it is a PAY FOR DELETE, the settlement will trigger a reset of the SOL

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@rebuildincredit

 

If a debt is paid in full, there's no debt left, so there's no SOL.  BUT, I would never settle with a CA unless I first had a writing from them that said that once the payment of $500 is received, the debt is paid in full. 

 

Also, an entry doesn't always come off your CR exactly 7 years after the date of first delinquency.  Sometimes it's 7.5 years.

 

Is the debt with a CA who's collecting for the OC, or is it with a JDB who has purchased the account.

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