Have I reset the SOL? Advice?

Discussion in 'Credit Talk' started by goemon13, Apr 24, 2014.

  1. goemon13

    goemon13 New Member

    Thank you in advance for your help.

    My wife and I decided we should start looking for a house. I check our credit score pretty often and use annualcreditreport once a year to make sure everything is okay. Before this week I had checked it last May and wasn't expecting anything on it because our credit score are still fine for a FHA loan. They are in the 725-750 range.

    Unfortunately, an old apartment debt my wife has was on her report was posted June 2013, and it expires January 2017, which I believe means the account originally went delinquent January 2010. I live in California, which I believe means the SOL has expired because when I look it up it says that it's 4 years.

    In order to qualify for the FHA loan for our house we cannot have her credit report like it is now. We can make a payment, settle, or I could pay for delete. It just can't stay the way it is now.

    I know someone who is a collection agent and he was giving me some tips on calling and negotiating. After he told me everything I needed to know I called. After doing some more research on the internet, this was apparently a really bad idea. Although I do need to fix this debt for my wife, I'd rather not have the SOL reset.

    With the collections agent I talked about the debt and I offered to settle. But we didn't agree on anything at all. This seems to be where I get confused. On some websites it simply says admitting to the debt will completely restart the SOL, is this true? I was also told that since I offered him $400 to settle I reset the SOL. Again, nothing was agreed upon. I was flat out denied. The debt is $3100 and I was trying to get him to negotiate. He simply said he would need 70% to even think about talking to his "client" about it. I told him I need to talk to my wife and hung up.

    Also, can someone clarify that he can talk to me about the debt? In the FDCPA it says that a collector can talk to the consumer only and later clarifies the spouse may be a consumer. But, I do not owe the debt. I co-signed on the lease for her apartment but the debt was split between her and her roommate. Can I admit to her debt? Can I even negotiate this?

    After consulting the internet it seems like I may have been given really bad information. And although I would like to settle this quick, I don't want to reset the SOL. Would sending a letter by certified mail offering them something like 30% for pay-for-delete restart the SOL if they deny me? If we do settle for 30%, can they sell the remaining 70% debt to another collection agency? So many questions.

    Thank you so much for this information.
     
  2. tessmcgill

    tessmcgill Well-Known Member

    As I understand the CA Civil Code, a new written contract to pay resets the SOL.

    CALIFORNIA CODE OF CIVIL PROCEDURE SECTION 360

    "No acknowledgment or promise is sufficient evidence of a new
    or continuing contract, by which to take the case out of the
    operation of this title, unless the same is contained in some
    writing, signed by the party to be charged thereby, provided that any
    payment on account of principal or interest due on a promissory note
    made by the party to be charged shall be deemed a sufficient
    acknowledgment or promise of a continuing contract to stop, from time
    to time as any such payment is made, the running of the time within
    which an action may be commenced upon the principal sum or upon any
    installment of principal or interest due on such note, and to start
    the running of a new period of time, but no such payment of itself
    shall revive a cause of action once barred."
     
  3. mindcrime

    mindcrime Well-Known Member

    You didn't reset anything.

    If you co-signed the lease, you're the consumer. Doesn't matter if the bills were split between two or one other co-signers.

    No. But if this is only reporting on her report, it needs to come from her.

    CA SOL is 4YRS, so this is past SOL. You can play hardball with them.


    No, that's why it's a settlement. Otherwise it's just a 'partial payment'.
     
  4. goemon13

    goemon13 New Member

    Can I still ask for debt validation? It's been on my wife's report since June 2013? I'm going to send a pay-for-delete letter tomorrow, if they deny or do not respond should I include that I will be sending a request for proof of validation?

    When I talked to the agent, he also said he can report on it for 7 more years starting June 2013, the month when his company first posted it to her credit report. Is this true? I thought it was from the delinquent date, January 2010, the fall off date being January 2017.

    Any tips or samples of a good pay-for-delete letter? This one was what I had planned on using: credityoda.com/pay-for-delete-letter.html

    Thanks again
     
  5. mindcrime

    mindcrime Well-Known Member

    Yes. It sounds as though they never followed through with:

    § 809. Validation of debts [15 USC 1692g]

    (a) Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written notice containing --

    You can read this full law here: Fair Debt Collection Practices Act | Federal Trade Commission


    False.



    § 605.
    Requirements relating to information contained in
    consumer reports [15 U.S.C. § 1681c]
    (a)
    Information excluded from consumer reports.
    Except as authorized under
    subsection (b) of this section, no consumer reporting agency may make
    any consumer report containing any of the following items of information:
    (1)
    Cases under title 11 [United States Code] or under the Bankruptcy
    Act that, from the date of entry of the order for relief or the date of
    adjudication, as the case may be, antedate the report by more than 10
    years.
    (2)
    Civil suits, civil judgments, and records of arrest that from date
    of entry, antedate the report by more than seven years or until the
    governing statute of limitations has expired, whichever is the longer
    period.
    (3)
    Paid tax liens which, from date of payment, antedate the report by
    more than seven years.
    (4)
    Accounts placed for collection or charged to profit and loss which
    antedate the report by more than seven years.

    5
    (5)
    Any other adverse item of information, other than records of convic
    -
    tions of crimes which antedates the report by more than seven years.

    (6)
    The name, address, and telephone number of any medical informa
    tion furnisher that has notified the agency of its status, unless--

    (c)
    Running of Reporting Period
    (1)
    In general.
    The 7-year period referred to in paragraphs (4) and (6)
    of subsection (a) shall begin, with respect to any delinquent account
    that is placed for collection (internally or by referral to a third party,
    whichever is earlier), charged to profit and loss, or subjected to any
    similar action, upon the expiration of the 180-day period beginning
    on the date of the commencement of the delinquency which imme
    diately preceded the collection activity, charge to profit and loss, or
    similar action.

    Read it all here: http://www.consumer.ftc.gov/sites/default/files/articles/pdf/pdf-0111-fair-credit-reporting-act.pdf ...you can skip to page 28.


    Considering its age, and the fact that you're past the SOL in CA, I would use a PFD as a last resort. Demand validation first citing failure in complying with the FDCPA section 809.

    Oh, and might want to mention this in your letter too:

    § 807. False or misleading representations [15 USC 1692e]

    (2) The false representation of --

    (A) the character, amount, or legal status of any debt; or

    ....

    (5) The threat to take any action that cannot legally be taken or that is not intended to be taken.


    ...too bad you weren't recording that call when the CA told you he can report on it for 7 more years starting June 2013 from when they first posted it. IF this was true, consumer would never be rid of collection accounts; CA's would simply keep turning them over.
     

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