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Do I pay and settle or NOT

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the debt was charge off by the original creditor, but I remember one collection tried to collect on it.  I don't know if they where hired by the original creditor or what, and than went to second collection who actually started to report on my credit report and now they trying to collect on it.

 

The first collection the stopped contacting me and  the second collection still reporting on my credit report.

This month I received a very settlement offer from the collection who is reporting to my credit report,but when I was reading the letter and got to the bottom it saying this : 

Because of the age of your debt , we will not sue you for it. If you don't pay the debt, we may continue to report it to the Credit Reporting Agencies as UNPAID.

What the mean by this:  because of the age of your debt we will not sue you ?

How do I know witch collection is debt with ?

Do I settle this or not?
 

 I see that the collection who reporting on my credit report will fall of in 2016 is this mean they will stop reported on my credit report after 2016 and the debt will go a way ?

Thanks for any respond.

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My thoughts are no, don't settle. It sounds like you may be past the SOL, so they can not sue you, but you are still within the seven year SOL for credit reporting. If that is the case, then it won't be long for it to drop off. An old debt such as this will not hurt your credit as bad as paying it off or a partial payment. Remember, these JDB's pay pennies on the dollar for your account then want the full amount.

 

If you make even one payment, you will restart the SOL and they can then sue you. I used to live in MT., but don't recall the SOL there. I think it's six years there, you will need to check to make sure. We have a list here on the forum that will tell you. Good luck.

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Please tell me if the letter they send with settlement offer says this :        Because of the age of your debt , we will not sue you for it. If you don't pay the debt, we may continue to report it to the Credit Reporting Agencies as UNPAID.

 

is this mean they can't sue me is that correct ?

 

Thanks

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I recently got a similar letter for one that is still within SOL. I suspect they have so many accounts that they are not even bothering with those more than three or four years old, rather than delving into each state's particular SOL rules. Unless of course, the amount is substantial.

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Keep that letter in a safe place. Do nothing and if they do sue you file an FDCPA claim against them. You should be OK, but always keep everything they send you just in case. As @TomnTex stated above do not send them anything. In some states if you send them a dollar it resets the SOL.

 

Chase used to send letters for an oddball number asking for a payment like $8.49. People would pay this just thinking they would stay out of trouble only to find themselves in court. If they say they can't sue then take their word for it. At least for now.

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Thanks for all your replays.

 

I am just learning more and more about the collection.

 

Let just say when someone do settle  I am not saying I am going to settle with collection ,and the collection agreed  to reported :  paid as agree.   Dose settlement agreement still resets you SOL  or not ?

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If you settle and you are dealing with an honest CA. then you should be OK. This is all assuming the agreement states that they will forgive the remaining balance and will not sell it to someone else. Please note that you will still be liable for paying taxes on the remaining balance. The tricky thing about dealing with a CA is that you are still also dealing with the OC or JDB, so you need to make sure both parties are on the same page.  In a perfect world they will do what they say and that will be the end.

 

The problem is that a lot of CAs are less than honest and are even worse than many JDBs in my opinion. I don't have any experience with settling like you are mention, but I do have experience dealing with CAs. They tend to violate the FDCPA when it comes to basic things like phone calls a letters even more than your average JDB. Why? Because they are not "official" owners of the debt. They area either working for an OC or JDB and they have very little skin in the game. All they are doing is working on a commission on someone else's behalf. Not only is the CA working on a commission as a company, but the employee is also probably on a commission. To make things worse even when they get sued for violating the FDPCA more than likely the person contracting them will pay most or all of the penalty.

 

So if you do settle make sure and have an attorney look over the settlement agreement. Do not agree to anything verbally and get everything in writing. I would just hate to see you come back in a few months telling us about getting sued on an account you had already "settled". If you end up getting screwed like this then it does reset the SOL. On the other hand if everything works out as promised then you shouldn't have anything to worry about. Just make sure and keep all of the documents for the next several years just in case. 

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I feel stupid asking this what JBD  means ? 

 

Do you think the OC still have something to with this even it says the account was charge off ?

 

Do I call OC and ask them before I settle if I even settle,but I don't even know if they still have any information about the account.

 

My last question Do I still get the 1099 form the OC to pay taxes , because I have never receive one since 2008  from the OC OR CA?

 

Thanks for all you help

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I feel stupid asking this what JBD  means ? 

 

Do you think the OC still have something to with this even it says the account was charge off ?

 

Do I call OC and ask them before I settle if I even settle,but I don't even know if they still have any information about the account.

 

My last question Do I still get the 1099 form the OC to pay taxes , because I have never receive one since 2008  from the OC OR CA?

 

Thanks for all you help

 

JDB:  Junk Debt Buyer

 

Whether the OC is still involved depends on whether they sold the debt.  If they sold it they are not involved.  "Charged off" is an accounting term that is irrelevant to you it merely tells the credit reporting agency that the account is now listed as bad debt.  

 

If the original creditor still owns the account it is always better to settle with them rather than a collection agency.  However, TomnTex's statistics are basically made up and from him biased personal opinion.  Many people successfully settle accounts and it is far greater than 1%.  I personally settled 3 to my satisfaction by sending written settlement agreements with the terms I would agree to and all 3 signed and sent it back and deleted the trade lines when I paid.  I have had 100% success with the accounts I settled.

 

Most often when a settlement goes wrong is when it is done based on the false promises the collector makes to the consumer on the phone to induce payment.  The misplaced trust then bites the consumer in the behind when they find out all those statements are not enforceable and were lies.  If you send a settlement agreement in writing and they sign it and return it to you then you have a binding contract and I always made sure to include accelerated damages clause if they failed to perform under the agreement.

 

First find out if the OC still owns the account.  If it has been sold you cannot deal with the OC to settle.  If they still own it then send your settlement offer IN WRITING to them via certified mail with delivery confirmation.  If it is with a JDB then whether to settle or not is a personal choice.  I would not unless it is for no money.

 

As for the 1099-c if the amount remaining in dispute after you settle exceeds $600 then the OC is supposed to issue a 1099-c.  Not all do.  There is no way to predict  A CA cannot issue a 1099 because they do not own the debt.  

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Its not a 100% guarantee, but you can usually find out who owns your account by pulling your CRs. Look at the OC line and see if it has a balance. If it does then they still own it. If it is zero it usually says something like "lender sold the account". 

 

http://www.consumer.ftc.gov/articles/0155-free-credit-reports

 

I'm not a fan of calling everyone involved because if you keep contacting them and don't settle they may sue. This is not a guarantee, but many times OCs and JDBs to not sue until they know exactly where you are located. Check your CRs for free on the link above and then decide on your next steps. 

 

As for the 1099s you are very lucky so far. Not all send these but when they do it is not a fun surprise. Just make sure if you do settle to get it in writing to avoid this. 

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I would think that because a 1099-C is an IRS thing and not a JDB, the JDB would have to send you one regardless, because it's the LAW and the IRS requires it. I don't see a legal way around it though many claim they include this in settlement. Again, the JDB has no control over the IRS and their laws. 

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I would think that because a 1099-C is an IRS thing and not a JDB, the JDB would have to send you one regardless, because it's the LAW and the IRS requires it. I don't see a legal way around it though many claim they include this in settlement. Again, the JDB has no control over the IRS and their laws. 

 

If you make it a written condition of your settlement they will not send one. Its not really a big deal with the JBDs because they never really have very much invested to start with. The only way it would be a requirement is if they actually invested a large amount of money in these accounts, which I'm guessing has never happened. The IRS laws only come into play when dealing with an OC.  

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My thought is that since it's mandated by the IRS, no matter who has the debt, if it's over $600.00 it's required that a 1099-C be issued. The IRS makes no allowances for who can or can not issue one. They just say $600.00 or more, you get a 1099-C. If the JDB fails to issue one, the are not complying. Think about it.

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My thought is that since it's mandated by the IRS, no matter who has the debt, if it's over $600.00 it's required that a 1099-C be issued. The IRS makes no allowances for who can or can not issue one. They just say $600.00 or more, you get a 1099-C. If the JDB fails to issue one, the are not complying. Think about it.

 

I don't know the specifics, but I am guessing it applies more to the actual money involved. Assuming a JDB pays 3% for something over 20,000 then it may be required. I know personally and second hand that they don't worry about this issue if it means them collecting some money or even settling for nothing. Not sure what is and what is not legal, but this is how they operate. Like I said with an OC it is much more cut and dry because they have an actual real loss. 

 

For those in the process of litigation you should always include that a 1099 will not be issued when negotiating with them. This is a part of the process that I have never had them fight. 

My guess is that this may be an issue if they ever could prove they "own the debt", but I have yet to deal with a JDB that has worried about proving this.

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Well on my credit report it showing  the OC :

 

Balance $ 0 

 

Account paid in full, was a charge off

 

Remarks : purchased by another lender

 

 

and it showing a collection agency that started reporting on my credit report for long time now.

 

Is this mean that the OC creditor do not have the account any more ?

 

Are you saying that the only way I will get the  1099 form  is if I settle with the collection ?

 

If I don't settle than the OC may send me the 1099 form and that my be , and how about 20 years from now can they still send me the 1099 form ?

 

Thanks ever body you been great help on answering question thank you so much.

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Never contact a JDB for any reason under any circumstances and ignore them when they try to contact you.  You have never taken out a loan from them or entered into any contract with them therefore you owe them nothing. 

 

The only way anyone could legitimately owe them anything is if they have already been awarded a judgment against them.

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So now you know you are dealing with a JDB and after rereading your original post it may be SOL. Originally I thought you might be dealing with a CA on behalf of the OC. The JDB might still contact you or hire a CA to try and collect. Compare your last payment date to your state's SOL and you may not have anything to worry about. 

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Well on the last settlement offer letter they send me it said :  Because of the age of your debt , we will not sue you for it. If you don't pay the debt, we may continue to report it to the Credit Reporting Agencies as UNPAID.

 

 

 

Well couple days ago I received another settlement letter offer it basically the same letter as the first one the only different is that the extended the expiration date ,and  the big bib big   different is that they take off  the lines about the age of the debt like the mention on the first letter. Did not right this lines this time :   Because of the age of your debt , we will not sue you for it. If you don't pay the debt, we may continue to report it to the Credit Reporting Agencies as UNPAID.

 

What you think this mean why they did write it on the first letter, but not the second letter ?  I think this is a valuation because they are not mentioning the age of the debt this time.  I also heard that collection do that to make the consumer think that the debt still with SOL.

I also heard that the collections getting sued for misleading the consumer about the SOL.

 

What you think please ?

Thanks

 

What you think please why they are not mentioning the age of the debt on this second letter ?

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Well  the settlement letter offer the send me it saying this lines:  Because of the age of your debt , we will not sue you for it. If you don't pay the debt, we may continue to report it to the Credit Reporting Agencies as UNPAID.

 

Well guss what about couple days a go I received a second settlement offer it basically the same letter , but there is two things have change on first they extended the offer another month or so , but the second big big big thing that change on the letter is they take off the lines about the age of the debt.

 

They take off this line :  Because of the age of your debt , we will not sue you for it. If you don't pay the debt, we may continue to report it to the Credit Reporting Agencies as UNPAID.

 

I think this is a valuation  why they take off this lines about the age of debt,and they are trying to mislead  to make me think that the debt still with SOL.

 

I keep hearing that they have been doing this so they scar people.  

I also heard that they are getting sued for misleading consumer for not mentioning the age of the debt.

 

Why are they sending me one letter and saying the age of the debt old and they will not sue , but the second letter they take that part off ?

 

What I should do I think so far they have committed couple violations with me ?

Thanks

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Do you know why they send me tow settlement letter offers every month 2 month in row  ?

 

Why the mentioned the age of the debt on one letter, but not the second letter  ?  I know  100% that it  volition  because they suppose to put down the age of the debt ?

 

Her is another volition,  and it big one they tried to make it look like I was serve  AFFIDAVIT  . The affidavit I received had no case number or court day nothing . I think they where trying to scare me . Never heard from them again this it was back in 2012.

I showed it to attorney  and they told me that is volition to do that to make it look like AFFIDAVIT  a fear one.

 

What you think please ?

 

Thanks

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