Dr Crandall

Date SOL Commences for Discover Credit Card

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My friend is still working with Discover on a credit card debt where his last payment to Discover was 6/25/2014.  He utilized a debt repair company National Debt Relief on 9/2014 where he made monthly payments to N.D.R. and they would negotiate on his behalf.  He decided that he could do this himself toward the end of 2015 and N.D.R. cleared his account with a lump sum payment on 12/2015 to Discover C.C. for $3,325.00, bringing the balance down to $5,707.00.  That was not my friends intention as it just brought the balance down, it didn't settle the account.  He asked me if the SOL would commence on 6/25/2014 or would it be 12/2015 since that was considered a payment even though the account was charged off on 12/15.

This is in Iowa where they consider partial payments after charge offs are not enough to restart the SOL clock, but not sure how Iowa does it when a 3rd party makes the payment.  Has anyone on Credit Infocenter had any experience in this scenario?  Discover still has the account and want to settle for 80% of $5,707.00.  Thank you.     

Edited just now by DoctorC

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Repair places don't make payments monthly until they get a lump sum saved up and then have negotiating power. To bad they didn't try for a payoff for the 3k.  Discover would argue the last payment would be 12/2015. Your friend would need to find case law from Iowa that supports a partial payment doesn't count to restart the SOL.  Is he being sued? If not he should work on getting his ducks in a row, researching for that case law, be ready when they do sue while trying to run out the clock.   

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