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mistakesweremade

I want to settle my debt, but I think I am being sued because of it.

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Hello everyone,  I have found this forum via google when searching for help with settling debt and I hope that someone will be able to help me. First, a little background on how I got in debt. When I was 18 years old (2006 ish) I got my first credit card from Paypal with a $1500 credit limit. At the time I thought no biggie I can just buy stuff and pay the minimum since I was working, but being the young adolescent that I was I never paid anything and the credit line ended up being charged off by Paypal at around $1800 due to interest. I also had another credit card with chase that was charged off at $800, but I ended up settling that myself when chase sent me an offer to settle and I did, i believe it was about $500.

 

Now here I am today and I want to settle my debt to build up my credit, but I don't know how to go about it. Over the years I have received multiple letters from multiple collection agencies trying to collect the debt some saying I owed as much as $3k which I know is BS. Yesterday I received a letter from the same debt which caught my attention. The letter I received is from a law firm in Michigan and is hand signed. It essentially says the same things as the other letters from other collection agencies, but this one is from Stenger & Stenger in Grand Rapids, Michigan. The letter reads exactly the same as the others from other collection agencies except that it is from a law firm and is hand signed by Denise M. Hallett. In addition, it also shows the original amount of $1800 and not some inflated mount. Lastly, the letter from them is dated May 27, 2014 but I received it on June 7, 2014 almost two weeks later. I doubt it take almost two week to travel from Michigan to Indiana

 

Here is what I know about the debt. The original creditor is General Electric Capital Corporation (Paypal). The current creditor is LVNV Funding, LLC. I am located in Indiana now and I was also when I signed to received the CC from Paypal. I believe that statue of limitations for Indiana on a written contract is 10 years. A few years ago around 2010 or 2011 I paid $500 over the phone on this debt to one of the creditors, but I don't remember who it was. I do remember writing down the name of the supervisor of the guy that I was talking to as well as his ID number, but I don't think I have that info anymore. I have received letters from at least 5 collection agencies including this law firm over the years for the same debt.

 

Can someone please point me in the right direction In how to go about settling this? A few months ago I obtained a copy of my credit report from Equifax and Experian. LVNV is posted on both as well as Chase, but Chase shows "paid in settlement" and  LVNV shows "collection account". I paid for my credit score on Equifax and it is 644 (below average)

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A letter from a law firm does not mean you are being sued but I am in GR and that law firm WILL sue you.  They have privileges in IN and MI.  They are relentless.

 

Here is what you need to know to settle.  DO NOT discuss anything verbally as it is not enforceable.  Send a settlement offer to LVNV certified mail return receipt.  They paid pennies on the dollar for the account so I would start LOW and let them counter if they do not accept and come up in $50 increments until you reach a number that both sides agree on.  Then you pay it via money order with a signed settlement agreement.  Make sure the terms include deletion of the trade line from all credit reports, no 1099-c, and no selling of the remaining balance as it is disputed.

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Thank you for your response. Is there a format for settlement letters? My plan was to start at $500 considering I already paid $500 a few years ago. I do not understand what you mean by "deletion of a trade line" and "no selling".

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You want them to delete their reporting from your credit reports.  If you settle for less than the balance you do not want them selling the account to someone else to come after you.

 

I have used this letter:

 

Dear Creditor, 

I am contacting you today in regards to account number   _____________
After a lengthy time of financial hardship, I am now in a position to satisfy the debt under the aforementioned account number. I would like to ask for your cooperation in helping to resolve this debt. I am putting forth a sincere effort to settle my debts and pay them off. 


I would like to propose a full payment toward this debt in the amount of $ ____________. I propose that this amount be accepted as payment in full of the aforementioned debt. In addition, I would like to request that all late payment remarks or charge-offs related to this debt be removed from my credit bureau reports. 


I am currently working cooperatively with several additional creditors for debt settlement purposes, and therefore, my funds are limited. For this reason, I have chosen to settle those debts which can be satisfied through settlement proposals, such as I am proposing to you today. 

A couple of my creditors have already made acceptable settlements with me. I would like to include this debt among the paid account. If the above proposal is acceptable, I will pay the agreed upon amount in full. Please sign the enclosed agreement. Please keep the original for your records and send me a copy of the signed document. Upon receipt of the signed agreement, I will send you the agreed upon funds via money order within 14 business days. 

Yours truly, 
 

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Your dealing with JDB's that bought your accounts for pennies on the dollar. Your probably past your state SOL or near it, paying them a dime resets that SOL. Why pay them? Just let it go away. It will stay on your CR for a total of 7 to 7.5 years and fall off. Me, I wouldn't give them a dime, not worth it and you owe the JDB's nothing.

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While I respect your integrity, paying these folks is foolhardy.  First, if you got this acct in 2006 and never made a payment on it to the OC, the SOL is expired.  Although you claim to have made a payment in 2010 or 2011, there appears to be no record of it, so don't mention it.

 

CC's are Open Accts not written contracts.  The SOL was 5 years.  Additionally, the 7 yr reporting period has expired and they shouldn't be on your CR either. 

 

Before you send good money after bad, you should DV these folks.  If they don't disappear, they will send you what they have.  Mostly minimal info that couldn't prove jack in a court of law.  *IF* they filed a lawsuit, they would be doing so in the hopes that you didn't show up, didn't know about SOL, were immature and represented yourself so that they could get you to admit to the debt.

 

I would send a letter that disavows knowledge of the acct and ask for validation.  When they confirm your 2006 date, write the a FOAD letter explaining that the SOL has expired.  Also, if they are on your credit report, remind them that it is so old that it can't be reported and you will sue for $1k, if it isn't removed post-haste.

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Thank you for your replies. I was also thinking about sending them a debt validation letter. Here is one I found on the net. If I send the debt validation letter and there is no record of the $500 I paid, which would put this past the SOL, where should I go from there? Also I should send this directly to LVNV funding and not the collection agency correct? I have their address from my credit report.

 

Here is the format:

 

Date

 

Your Name

Your Address

City, State Zip

 

Collection Agency

Collection Agency Address

City, State Zip

 

Re: Acct No. XXXX-XXXX-XXXX-XXXX

 

To Whom It May Concern:

 

I am writing this letter in response to the phone call/letter received

from you on (Date). In conformance to my rights under the Fair Debt

Collection Practices Act (FDCPA), I am requesting you to provide me

with a validation of the debt that you talked of earlier. Please note, this

a not a refusal to pay, rather a statement that your claim is disputed

and validation is demanded. (15 USC 1692g Sec. 809 (B))

 

I do hereby request that your office provide me with complete

documentation to verify that I owe the said debt and have any legal

obligation to pay you.

 

Please provide me with the following:

 

1. Agreement with the creditor that authorizes you to collect on

this alleged debt

2. The agreement bearing my signature stating that I have agreed

to assume the debt

3. Valid copies of the debt agreement stating the amount of the

debt and interest charges

4. Proof that the Statute of Limitations has not expired

5. Complete payment history on this account along with an

accounting of all additional charges being assessed

6. Show me that you are licensed to collect in my state; and

page 1 / 2Sample letters for client education

  1. Your license numbers and Registered Agent

 

If your office fails to reply to this debt validation letter within 30 days

from the date of your receipt, all instances related to this account must

be immediately deleted and completely removed from my credit file.

Moreover, all future attempts to collect on the said debt must be

ceased.

 

Your non-compliance with my request will also be construed as an

absolute waiver of all claims to enforce the debt against me and your

implied agreement to compensate me for court costs and attorney fees

if I am forced to bring this matter before a judge.

 

Thanking you,

 

Your Signature

Your Name

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I'm gonna bump this because i'm confused.

 

At first I wanted to pay this to get rid of it off of my credit report. However, Knowing that they paid no where near what I owe for the account If I can just not pay and they go away I am also fine with that. How can I find out if they have a record of my payment made back in 2010/2011? Exactly what would reset the statue of limitations? Would a debt validation letter reset it?

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@mistakesweremade

 

I believe the SOL in IN for this type of debt might be 6 years.  Contact an attorney or your state's Department of Consumer Affairs to find out for sure.

 

IC 34-11-2-11

Written contract actions.

  Sec. 11.  An action upon contracts in writing other than those for the payment of money, and including all mortgages other than chattel mortgagtes, deeds of trust, judgments of courts of record, and for the recovvery of the possession of real estate, must be commenced within ten (10) years after the cause of action accrues.

IC 34-11-2-9

Promissory notes, bills of exchange, or written contracts for payment of money.

  Sec. 9. An action upon promissory notes, bills of exchange, or other written contracts for the payment of money executed after August 31, 1982, must be commenced within six (6) years after the cause of action accrues.

 

The SOL is usually reset by a payment or a written promise to pay.  A DV will not reset the SOL if you do not admit that the debt is yours and that you owe it.   Just dispute the debt and request validation.

 

The debt collector does not have to provide you with the date of last payment in order to validate the debt.  If you want to know the exact date, you have to search your bank records.

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People tend to forget that the IRS by LAW REQUIRES that a 1099-C be issued on any debt over the amount of $600.00. The JDB would have to eat that, their not! So, I doubt you can or will get around the 1099-C.

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I would definitely DV the JDB.

 

But not with that letter.

 

ALL they are required to give you, if you send it within 30 days of being dunned, is the amount of the debt and the name and address of the original creditor.

 

So, all you need to do is follow the letter of the law, as well.

 

Re: Your File Number 123435

 

To Whom It May Concern:

 

This debt is in dispute. 

 

Please provide validation.

 

My correct mailing address is:

 

Blah blah blah.

 

Sincerely,

 

Me.

 

I do NOT sign DV letters. Why give a JDB a copy of your signature?

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@Clydesmom - what should the "enclosed agreement" to the creditors look like? or is that the agreement and you put a line for the creditor to sign? 

 

Also, question of you all.  Does anyone know how to figure out SOL for the debt if you cannot locate your records?  How to get a statement of payments on the account if it has been sold to a JDB?

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@Newleaf

 

 

If it's already gone to an attorney/law office can you still send a dv letter?

 

A DV letter is only valid if it's sent within 30 days of a debt collector's first dunning letter.  That letter would contain the 30-day validation notice.  If you send it at any other time, they can ignore it.

 

 

Does anyone know how to figure out SOL for the debt if you cannot locate your records?  How to get a statement of payments on the account if it has been sold to a JDB?

 

 

Check OC's entry on your credit report.  If the OC is reporting, see if there is a date of last payment.  If not, then go by the date of first delinquency.  Use either one of those dates to check your bank records regarding payments.

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