SOL Question, can't find answer.

Discussion in 'Credit Talk' started by Vegasheat, Aug 4, 2002.

  1. Vegasheat

    Vegasheat Member

    First let me say that with all of this Troll talk I'm a little afraid to ask my question, but I need answers so I'll take the risk. :)

    The brief facts.

    Three accounts with a last date in '95, should age off in October this year. These accounts were sold back and forth between CA's, one in particular (Discover) has seen several owners and I have had different CA's trying to collect at the same time and boy was that fun. Now all three are owned by Midland (MCM).

    I live in Nevada and with the great advice from this board I went to the State law library online and found we have a 4 year SOL here so no probs I thought. We received a final letter saying "since you refuse to respond to our repeated requests (unlisted phone they can only write) we have been authorized to forward this matter to an attorney licensed to practice in your state. If you do not respond by 8/23 we will forward this for legal action."

    In 2000 when times were better my wife did make payments to MCM on all three of these accounts. Did this up the date for the SOL? Or is the date set by the original creditor?

    We thought we had just turned a corner with all of this going away in Oct but now we believe we have driven thy stake into our own hearts.

    Just to whine a little they (MCM) suddenly started reporting these accounts as 120 days past due, and they started it immediately after a prospective employer ran my credit. And yes, when the job offer came in they ran the credit again and the offer was recinded due to the three 120 day remarks. Isn't life fun?

    Simple to us at this point, if we upped the date by paying on these accounts we have to BK no choice. We barely get by now but are current on everything, never been late on any of our accounts since the problems in 1995 (both were unemployed for several months) but adding those three puts us in never never land. (never can pay, never will pay).

    Any help from the crew here will be appreciated. I've searched (lurking and learning I call it) old posts for more than a month now and can't find the answers.

    Thanks again
    Vegas
     
  2. pathan

    pathan Member

    Vegas,

    I am NOT an expert, but I have read about SOL. In most states, once you make a payment, SOL starts all over again. In a few states, it just starts by promising that you will pay. That's why these collectors try you to make a "good faith" payment so that they get a new SOL.

    Anyway, I am not an expert...just my 2 cents.

    Any Experts on this one?
     
  3. breeze

    breeze Well-Known Member

    Yes, your payments changed the date of the start of the SOL. Get your records together and start fighting now.

    Do not wait for this to go to court. Begin by sending out validation letters. If your letters are challenged due to the fact that you have made a payment, tell them that at that time, you did not have your own records available, and you felt you had no choice but to pay, even thought you weren't sure if the accounts were truly yours. Tell them now you have retrieved your records, and that you have more collections than you actually can find records for, so you believe that some of the accounts are possibly not yours and you are trying to distinquish which are and which are not, so you must have proof the account belongs to you before you will pay it. These accounts have been sold or transferred several times, so this might work.

    Use the long form for the validation letter, that asks about insurance claims, etc. Then cross your fingers, pray or whatever you do.

    Of course, many will tell you that since bk is a real possibility, and the bk laws are changing soon, and you yourself have re-aged your debt, go ahead and file it now - you will recover just as fast from the bk as you will from the charge offs and collections.

    Personally, I would probably file if I were in your shoes.
     
  4. Vegasheat

    Vegasheat Member

    Thanks Breeze, I'm sure you're right. Guess I was just looking for some other way out. In my heart I know I'll have to file, just hate to though.

    Thanks again
     
  5. breeze

    breeze Well-Known Member

    BTW, welcome to the board. I am getting ready to post something about the troll/newbie issue. But just for you, most of us here will assume you are a newbie who is not making sense. ;)

    Sooner or later trolls attempt to disrupt the board, that is when they show their hand. A collector posting/asking questions is fine with me. This is a free country, and we all have the same right to speak our minds, whichever side we're on.
     
  6. Why Chat

    Why Chat Well-Known Member

    I am happy that you said you were "not an expert" as your information is COMPLETELY wrong. ALL States have in their Statutes the provisions for "re-aging" an account. Most require, AT THE MINIMUM a signed agreement to do so. Many prohibit it COMPLETELY even WITH a siged agreement, only one I have seen (Nebraska) allows re-aging with a payment on an account, but it only applies to WRITTEN closed end contracts, not open ended credit card accounts.I have a SOL letter for CA's threatening legal action past SOL on my website.
     
  7. Why Chat

    Why Chat Well-Known Member

    Breeze is usually correct,however, in THIS case she has confused the re-aging of the "reporting" SOL with the "suing" SOL. Since the reporting requirements are under the Federal FCRA, and based on a formula determined by "first delinquency" prior to chargeoff, it is a simple matter for an OC to re-age an account for both "reporting" AND suing SOL. HOWEVER, it is another story with CA's .Although they can, through various tricks illegally reage an account for reporting purposes, they CANNOT do so for being sued on a CREDIT CARD account.
    Besides, Nevada is a "closed" border State for ca's, so the ca who is bothering you,if they are from outside Nevada has NO legal right to contact you at all.
     
  8. LKH

    LKH Well-Known Member

    I don't know if I am understanding correctly. You aren't saying that making a payment on a charged off acct can restart the 7 year clock?
     
  9. LKH

    LKH Well-Known Member

    I don't know if I am understanding correctly. You aren't saying that making a payment on a charged off acct can restart the 7 year clock? According to the FTC, it cannot restart the clock.
     
  10. Why Chat

    Why Chat Well-Known Member

    Just making a payment to a CA cannot restart ANY clock. However, if someone enters into an agreement, in writing with either a CA or CCC that brings the account current, then it starts the 7 year reporting clock over again from the next default date, This does NOT affect the SOL for being sued, as all State's only recognize either a first "cause or right of action"-that is the first date the OC had the "right" or "cause" to be able to legally file suit, or in "last transaction" State's the last date of payment or charge on an account to the OC. (NOT to a CA or even the OC if the account had been closed or charged off)
     
  11. LKH

    LKH Well-Known Member

    OK. Thanks. Just making sure that wasn't what you meant. Are the laws on right of action contained in the states FCRA or if not, where would this info be?
     
  12. Why Chat

    Why Chat Well-Known Member

    Most States have them in their commercial code, some in other areas, many are buried in sections on contract law, one, I can't remember which I found under their maritime law section.
     
  13. picantel

    picantel Well-Known Member

    what is your website why chat?
     
  14. Nave

    Nave Well-Known Member

  15. picantel

    picantel Well-Known Member

    I was looking on the usps.com postal site and pulled up their mail fraud complaint form. One of the types of mail fraud is false bill or notice. IF a CA send you a bill after the SOL and that bill is not legal to collect on I wonder if this would go down as false bill or notice. It would be interesting to try it out.
     
  16. Why Chat

    Why Chat Well-Known Member

    I found a chart of State Credit Statutes which I have added to my website.I haven't had time to check them out, but they should at least put you close to the correct sections for both cause of action, alienation of debtor's rights(partial payment extending SOL)and prohibitions of any changes for consumers(non business accounts).

    In those States that I have posted individually on my site that have ANY "tricky" re-aging laws -I have the statute printed.
    When a State statute says,"a payment on account acts as a written agreement" (to extend SOL) it is for WRITTEN closed end accounts ONLY.
     
  17. breeze

    breeze Well-Known Member

    Wow! I have seen judges say that the SOL had been re-set by a payment!!! What is Virginia's law on that, if I may ask? (I have attempted to read and understand it, LOL. How do they manage to make it so obscure?)

     
  18. Why Chat

    Why Chat Well-Known Member

    Va. is a State that starts it's "cause of action" from the last transaction date on an active(not frozen or charged off) account with the OC on credit cards, so it would be an impossibly stupid ruling that could reset the SOL for any reason after chargeoff.I e-mailed you all the pertinent statutes.
     
  19. breeze

    breeze Well-Known Member

    Thanks, I got it.
     
  20. sirrowan

    sirrowan Well-Known Member

    Could you tell me where the information comes from regarding the SOL for Ohio on this website and when it was last updated? It differs from others. I would your to be correct though. It's shorter than what other sites say.

    Please advise.
     

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