I need advice on how I should go about with an 8 yr old charged off debt. This chargeoff has fallen off of my credit report, but I'm worried they might try to reage the account and put it back on my credit file. Son of beeaches made a hard inquiry on my credit file just last month before raiding my checking account of 2 thousand dollars as setoff on debt. (didn't realize my bank bought out the old bank with whom the debt was with, closed out my checking account after they raided it..LONG story!!) Right after the 2K, they've been sending me letters to pay on the remaining balance. The SOL had clearly expired on this account. What are my options??? What letters do I send out, if any????? I plan on buying a house this summer and am sooo worried they are going to reage the account and it will show up on my credit file!!! btw, i've been told reaging an account is illegal. how would i go about fighting it should it show up on my credit file? Thank you.
Wait a minute! How were they able to collect the money if the SOL was expired, did they inform you of this and did they take formal action to garnish the account?
Most banks have, as part of their checking/savings account agreement , the provision that they can offset any defaulted debt you have with them by taking money from your other accounts (with them). No court action or notice is required. I don't think the bank broke any laws. If I understand correctly he had a charged off debt with BigBank, and a checking account with BiggerBank. BiggerBank bought BigBank - viola! the terms of the account applied to the old debt, SOL or no. That is why I never have my checking account with the same bank where I have credit cards. My bank keeps sending me CC offers - no way. I don't plan on defaulting or anything, but no one has any guarantees in life. $hit happens. I don't want to be in that same situation.
They did not garnish the bank account. They took it under the right of offset. Usually when you open a bank account, you sign a document giving the bank permission to dip into any of your accounts to pay another account when you are in default on the second account. So, when she failed to pay on the cc debt, they dipped into the bank account. It is a little different here because, originally, the cc account and the bank account were not with the same bank. But, when the new bank saw that both accounts showed up at the same bank, they used their right to set off, agreed to by the customer. SOL does not apply. Or, if you you argue it does, the bank has the money which means the customer must sue and prove the case.
If your bank bought out a bank that has one of your CCs you would be in the same situation would you not.? Also if it did happen how would you get out of it.?
No, they never took formal action(ie suing me) nor did they inform me prior to the 2K raid. I was left with an 800 # to call to find out who debited the money. It was then that I found out it was my bank's collections dept and was told that they were exercising their right to offset any asset i had with the bank to collect on bad debt. I did verify this with their bank account disclaimers and they were within their rights. The SOL only protects me should i be sued, but there really isn't any limitations to how long they can collect internally. so basically, they just got lucky because I had an account with them. If I ask to validate the debt, does that constitute as "promise to pay", thereby resetting the SOL clock?
If a bank where I have credit cards bought the bank where I have my checking account, I would move my checking account to another bank. I do watch for that kind of situation because my bank (originally a small regional bank) has been bought several times. "If it did happen...." doesn't apply, I pay more attention than that.
I have no desire to pursue the 2K. I'm just concerned that because the debt is now under a different business name(and probably different account number also), that they'll report it in my credit file under the new business name and new account number...and I've heard it's been done to many people before. They've already made a collection inquiry on my credit under the new business name. What's to stop them from reporting it?
Oh okay I was under the impression that they filed an action against you. As for the validation notice, it cannot hurt you. You are within your right to request validation of the debt. What state do you live in? In Florida, you reset the clock when you make a written promise to pay the debt. Look up your state laws regarding reformation of the debt or the collectibility of a debt. Good luck!
Oh okay I was under the impression that they filed an action against you. As for the validation notice, it cannot hurt you. You are within your right to request validation of the debt. What state do you live in? In Florida, you reset the clock when you make a written promise to pay the debt. Look up your state laws regarding reformation of the debt or the collectibility of a debt. Good luck!
1* The 2ND.Account has to be a Valid account. An account That is years past the sol is not a valid account. 2*Their right to set off expired and the customers agreement terminated upon the date the sol was up on the account. 3* If the sol applies to $10,000.oo remaining on the account it also applies to the $2000 they stole from the checking account.
1*Reporting something that is years past Sol is a violation. 2*This a violation also-No permissible Purpose. 3* Its against the law to report false information.
BECAUSE The amount has a lot to do with what method or methods you might want or need to use to deal with the situation. The more information you provide about a given circumstance the better the advice that can be given on how to deal with it!
