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Midland Funding trying to collect a SOL expired debt

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Recently I discovered that midland funding bought an OLD debt that the SOL ran out. In PA it is 4 years.  Midland HAS NOT contacted me HOWEVER they:

 

1. Re-aged the date of charge off from Sept 08 I was smart and kept a copy of my credit report from 2011   (HBC charge off date) to a new date that they called date opened 3-22-2010. essentially they just put this on my credit report until 3-2017 when it should go off in sept 2015.

 

2.  the original amount was for 11 grand but they inflated it to 25 grand.

 

3. The Statue of limitations in PA is 4 years, therefore it expired and cannot be collected as of September 2012.

 

 

Can someone please advise what first steps I can take. I do not want to kick a sleeping lion.  Should I let it go until the real drop off date is supposed to drop off.

 

 

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"1. Re-aged the date of charge off from Sept 08 I was smart and kept a copy of my credit report from 2011   (HBC charge off date) to a new date that they called date opened 3-22-2010. essentially they just put this on my credit report until 3-2017 when it should go off in sept 2015."

 

They did not re-age the debt.  The "date opened" is the date THEY got the account.  It does not change the fall off date ONE iota.  It will still fall off next year.

 

"2.  the original amount was for 11 grand but they inflated it to 25 grand."

 

They are illegally adding interest they are not allowed to collect.  I would dispute the amount being reported and if they continue sue for mischaracterizing the status and amount of the debt.

 

"3. The Statue of limitations in PA is 4 years, therefore it expired and cannot be collected as of September 2012."

 

Which means you have an affirmative defense if they do sue.  It does not mean they cannot report.  They can still report the TL until September 2015.

 

"Midland HAS NOT contacted me"

 

Which means that they are not trying to collect.  They have a statutory right to report for the 7.6 years past DOFD and the courts are divided on whether reporting is a collection activity.  Since you discovered it on your CR and they have never contacted you this is probably not going to be a successful lawsuit over the reporting.

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@Clydesmom

 

"2.  the original amount was for 11 grand but they inflated it to 25 grand."

 

They are illegally adding interest they are not allowed to collect.  I would dispute the amount being reported and if they continue sue for mischaracterizing the status and amount of the debt.

 

 

They're not mischaracterizing the  status. 

 

As to the amount, it could depend upon state law.  Most, if not all, courts have ruled that an assignee steps into the shoes of the creditor.  If the creditor was allowed to charge the max interest rate after the account was charged-off, the assignee can do the same.

 

29.9% on $11,000 for 4 years ( amount of time they've allegedly owned the account) is over $12,000. 

 

I'd dispute the amount.  If it's verified, I'd then further dispute with the furnisher.

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Thank you very much for your input. I really means a lot to me. I have been battling my credit for more than 20 years. Now that I do see light at the end of the tunnel, it is very deflating when an old debt rears up and smacks you in the face.

 

I am concerned about corresponding with any collection agency for fear that they try and reset the clock on the SOL.  Is this possible if I try and dispute the amount. ?

the way I see it is a collection account is just that and it will effect me on when I try and refinance my home ( early 2016) . If it is there I will HAVE TO SETTLE with them. 

 

ONE more question.

 

Recently I bought a car and while they were trying to get me financing they ran my information through a host of different banks. As a result I got 25 credit inquiries. How do I get them off of there. I recently read that they are only to be counted once for the loan...25 is EXTREME.  Any suggestions ??

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I am concerned about corresponding with any collection agency for fear that they try and reset the clock on the SOL.  Is this possible if I try and dispute the amount. ?

the way I see it is a collection account is just that and it will effect me on when I try and refinance my home ( early 2016) . If it is there I will HAVE TO SETTLE with them. 

 

Fear not.  Disputing the debt does NOT reset the SOL in anyway.  DO NOT under any circumstances tell a debt collector you are seeking to refinance your home. They will not settle knowing you cannot refi with their collection reporting.  You lose all your negotiating leverage.

 

Recently I bought a car and while they were trying to get me financing they ran my information through a host of different banks. As a result I got 25 credit inquiries. How do I get them off of there. I recently read that they are only to be counted once for the loan...25 is EXTREME.  Any suggestions ??

 

You cannot get them removed because you did apply for the credit.  They will be there for two years.  That is the bad news.

 

The good news multiple inquiries like that when buying a car or home are counted as one total not individually.  

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THANK YOU !!!

 

I have gotten GREAT information here. I found out about Credit Sesame and Quizzle (saves me some cash)..

 

I did note one other issue.  My mortgage company was GMAC and they converted to Qcwen. when they did that they closed my old mortgage account put it at $ 0 balance  and it is listed as a negative account because a had a few lates a few years ago. They (Ocwen)  then opened up a new account and another trade line for the same account and it is listed as paid as agreed. 

 

What in the heck do I do with that !!!!. I have the same mortgage reporting negative and positive accounts under two separate trade lines. is this dragging my score down and how do I tackle that issue. 

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THANK YOU !!!

 

I have gotten GREAT information here. I found out about Credit Sesame and Quizzle (saves me some cash)..

 

I did note one other issue.  My mortgage company was GMAC and they converted to Qcwen. when they did that they closed my old mortgage account put it at $ 0 balance  and it is listed as a negative account because a had a few lates a few years ago. They (Ocwen)  then opened up a new account and another trade line for the same account and it is listed as paid as agreed. 

 

What in the heck do I do with that !!!!. I have the same mortgage reporting negative and positive accounts under two separate trade lines. is this dragging my score down and how do I tackle that issue. 

 

The lates are probably not hurting you now if they are over 2 years old but there is a possible solution.  Write a good will letter to your former lender stating that you had some temporary difficulty a few years back but up until the loan was sold you had a ( xx month) history of on time payments and as a good will gesture would they please remove the late payments.  

They may not do it but you have nothing to lose by trying.  I did this with a car loan that was sold right before pay off and the lender changed them to "no data" and it went to a good account after that.

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You have a whole new issue. If your mortage is now with Ocwen you are in for a world of hurt. They are the nastiest of all mortage companies. They are well known for force placing insurance on your home whether you have it already or not and a host of other crazy things.

 

Best keep solid provable proof of each payment you make to them and when. They will hold on to your payment and report it as late and charge you penalty fees.

 

http://www.wzzm13.com/story/news/investigations/13-on-your-side/watchdog/2014/05/05/ocwen-mortgages-foreclosure/8560033/

 

 

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