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Midland Questions


lummus
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Hi all,

 

I am new to the site, but have so many questions.  I hope you can help.  

 

I had a huge hit to my credit a few years ago do to my husband losing his  job.  Long story short... many bills did not get pain.  Even went into foreclosure and lost my house.  But now I am back on my feet and trying to repair my credit so that we can possibly buy a house again.

 

I got a copy of my credit report and here are my questions:

 

There are two accounts for Midland on my credit report. One is mine and one is my husbands.  I know where they come from, but I am not sure that the amounts reported are correct.

 

I contacted Midland today about one of them and they told me that they had it in the legal department and it was about to have a suit filed on it.  The lady told me that I could settle for one-third of  the balance ($4000.00) and they would mark it paid in full.  Well this is not possible, so I asked her for another option.  Well they wanted me to pay a down payment of $2000.00 and then make monthly payments of about $500.00 each.  Again, that is not possible if I want a place to live and food to eat.

 

I stumbled across this website and have been reading some of the information on here, but I am a bit confused.  

 

I live in Florida and think the SOL is up on this debt.  It says on my credit report DLA is October of 2009 on one of them and the other is June of 2009.

 

Does anyone have any ideas to help me with this situation.  Until I get these two removed, my dream of owning my own home again is SHOT.

 

Thank you so much for any help you can give me.

 

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Well if she told you they are about to file suit, she just gave you an fdcpa violation for mis representing the debt. They cannot sue you for it. ( they can, but then you would counter sue for suing on a time barred debt)

Unfortunately, there is not a lot you can do to get it off your reports. It will drop off in another 3 years.

Do not pay them anything, or you could reset the sol. You can send them a FOAD cease and desist letter, and they could not contact you again to try and collect, and you could try disputing it in writing with the credit agency as not mine, but otherwise you are stuck with the trade line on your credit report. Bright side is you won't have to pay midland a dime.

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Hi lummus,

I just finished having somewhat of a debate regarding this matter.  First of all...when reviewing your credit file...never contact a collection agency...unless you are ready to settle the debt (monetarily).  A lot of times collection agencies will flat out lie and say that they are about to take you to court to sue...only to scare you into paying your debt.  

 

You have re-aged that debt with that collection agency simply by calling to discuss it with them...as a result they can and more than likely will report those accounts to the credit bureaus for another 7 years from the date of last activity...from which I understand... you just spoke to them on the phone.  

 

Here's what you should have done:

 

Review your credit reports: from the date of last activity which was 2009 as you stated...then 2016 those accounts would have fallen off of your credit files. For clarification...since you've made contact with them regarding these accounts, they can update their files and report your date of last activity as such.

 

What you should do from this point on is...dispute the accounts directly with the credit bureaus.  Make no more contact with the collection agency. Research dispute letters on the internet. I would begin with "not mine" as a reason for disputing. 

 

A little FYI: Had you not made any contact with the collection agency and went straight to disputing these accounts with the credit bureaus....your chances of having the accounts removed from your credit files would have been greater (but no guarantees).

 

While there is no over night or quick fix to our challenged credit problems...there are loop holes that we as consumers can use to our advantage.  Been doing this since 2003. 

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Shellie,

You are obviously getting DOFD and DOLA confused. They are two completely different items with two completely different meanings. 

DOFD will not change from when the account first becomes delinquent...but if you begin to pay that delinquent again...then that account will report 7 years from the DLA ...geese Shellie

 

FYI

 

Payment in full does not remove your payment history. The length of time information remains in your credit file is shown below:

Credit Accounts

* Accounts paid as agreed remain on file for up to 10 years from the date of last activity (DLA)

* Accounts not paid as agreed remain on file for seven years from the DLA


Collection Accounts

* Remain on file for seven years from the DLA

Public Records

* Judgments remain on file for seven years from the date filed, whether satisfied (paid) or not
* Paid tax liens remain on file for seven years from the date released (paid)
* Unpaid tax liens remain on file indefinitely
* Bankruptcy
* Chapters 7, 11, and non-discharged or dismissed chapters 12 and 13 remain on file for 10 years from the date filed
* Discharged chapters 12 and 13 remain on file for seven years from the date filed

New York State Residents Only (must be current resident)

* Satisfied judgments remain five years from the date filed
* Paid collections remain five years from the date of last activity
* All other purge rules as noted above apply

California State Residents Only (must be current resident)

* Paid or released tax liens remain on file seven years from the date released or 10 years from the date file
* Unpaid or unreleased tax liens remain 10 years from the file date
* All consumer-initiated inquiries for the purpose of obtaining a loan and/or benefit remain on the file for two years
* All other purge rules as noted above apply

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I was curious, so i just pulled this from the Florida SOL  on credit card debt.   Now I am really confused on what to do.

 

Re-aging debt 
Consumers should be aware of a practice called re-aging of old debts. The clock on the statute of limitations may start anew if a consumer makes a payment -- even a small amount -- on a debt that has exceeded or is approaching the end of the statute of limitations. Acknowledging an old debt may also extend the time limit on potential debt collection lawsuits. Consumer advocates now advise debtors not to acknowledge old debts or debts they don't recognize as their own to avoid inadvertently resetting the clock on the statute of limitations.

 

Any new activity on it could re-age it and make it more collectable.

-- Lauren Saunders 
National Consumer Law Center

"Any new activity on it could re-age it  and make it more collectable," says Lauren Saunders, managing attorney for the National Consumer Law Center, a consumer rights group. "You're better off ignoring a call about an ancient debt. It's best to send them a letter saying I don't recognize this or please verify it."

 

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I was curious, so i just pulled this from the Florida SOL  on credit card debt.   Now I am really confused on what to do.

 

Re-aging debt 

Consumers should be aware of a practice called re-aging of old debts. The clock on the statute of limitations may start anew if a consumer makes a payment -- even a small amount -- on a debt that has exceeded or is approaching the end of the statute of limitations. Acknowledging an old debt may also extend the time limit on potential debt collection lawsuits. Consumer advocates now advise debtors not to acknowledge old debts or debts they don't recognize as their own to avoid inadvertently resetting the clock on the statute of limitations.

 

Any new activity on it could re-age it and make it more collectable.

-- Lauren Saunders 

National Consumer Law Center

"Any new activity on it could re-age it  and make it more collectable," says Lauren Saunders, managing attorney for the National Consumer Law Center, a consumer rights group. "You're better off ignoring a call about an ancient debt. It's best to send them a letter saying I don't recognize this or please verify it."

 

Thank you lummus for doing your research.As I stated before, simply, no more contact with the collection agency...dispute the debts with the credit bureaus as "not mine". 

 

Hope this helps!

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Sorry...no...in this context, the word "activity" refers to making a payment.  Talking with a CA in regard to a debts IS NOT "activity".

 

Furthermore, the citation above refers to the FL STATE LAW regarding the "Statue of Limitations" (SOL) for debts in FL.  The 7-1/2 "Reporting Period" (RP) for negative tradelines on your CRs is a FEDERAL LAW and begins when the account "first went delinquent and was never brought current".  A small payment (while still not a good idea) DOES NOT RE-AGE the RP.

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Sorry...no...in this context, the word "activity" refers to making a payment.  Talking with a CA in regard to a debts IS NOT "activity".

 

Furthermore, the citation above refers to the FL STATE LAW regarding the "Statue of Limitations" (SOL) for debts in FL.  The 7-1/2 "Reporting Period" (RP) for negative tradelines on your CRs is a FEDERAL LAW and begins when the account "first went delinquent and was never brought current".  A small payment (while still not a good idea) DOES NOT RE-AGE the RP.

 

"Activity" does not mean only "making a payment"...it means ANY type of activity on an account...i.e discussions about settlement of debt, inquiring about a balance,,,,any type of activity on an account.  Lummus researched information...and you still dont agree and rather clarify the situation to what you think applies. 

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Sorry @A Brice Consult you are still wrong and no I did not confuse the the 2. Talking with them does not count as activity, if it did every JDB would claim it on every out of sol debt they own. Activity again I will state means payments, credits, signed stipulations, not conversing with the CA.

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If the items are from 2009, then, assuming that you have been re-establishing your credit, they won't affect you as much as you might think. 

 

Once unpaid items are more than 2 years old, they affect your credit rating less and less. IF you also have items in that time period that are paid on time, and/or paid in full (a car loan, etc), lenders (and even FICO) care about that more than old unpaid balances.

 

I was shocked to see that one of my credit cards that I didn't let go, back in 2010-2011, raised my credit limit by $1000, a couple months ago. 

 

What you can do with Midland, if you want, is sue them for FDCPA violations, with that "We're getting a suit together" comment.

 

And, lastly, A Brice: if you have case law showing that calling a JDB is considered activity that can re-age an account, please share.

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@lummus

 

 

I was curious, so i just pulled this from the Florida SOL  on credit card debt.   Now I am really confused on what to do.

 

Re-aging debt 
Consumers should be aware of a practice called re-aging of old debts. The clock on the statute of limitations may start anew if a consumer makes a payment -- even a small amount -- on a debt that has exceeded or is approaching the end of the statute of limitations. Acknowledging an old debt may also extend the time limit on potential debt collection lawsuits. Consumer advocates now advise debtors not to acknowledge old debts or debts they don't recognize as their own to avoid inadvertently resetting the clock on the statute of limitations.

 

Any new activity on it could re-age it and make it more collectable.

-- Lauren Saunders 
National Consumer Law Center

"Any new activity on it could re-age it  and make it more collectable," says Lauren Saunders, managing attorney for the National Consumer Law Center, a consumer rights group. "You're better off ignoring a call about an ancient debt. It's best to send them a letter saying I don't recognize this or please verify it."

 

 

In the above, Lauren Saunders states that new activity could re-age the debt.  She then says to send a letter to the CA.  Now, would it make sense that that if a letter (contact) re-aged the debt that she would say to do that very thing?

 

As Willingtocope said, the topic of the above was the statute of limitations for collection.  It was not the statute of limitations for credit reporting.  Ms. Saunders was referring to activity that would reset the FL 5-year SOL for collection.   She referenced acknowledging a debt.  That could mean offering to pay or sending in a payment.  Those are things that could reset the SOL for collection.  BUT, none of the things mentioned will reset the 7-year SOL for credit reporting.

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