Discussion in 'Credit Talk' started by sandra, Aug 10, 2000.

  1. sandra

    sandra Guest

    Hi all,

    I have a collection account on my credit file of $89.00 from 6/97. I have been trying since 4/00 to work with this agency to get this debt paid and off my report. I have contacted the collection agency 3 times by mail and twice by phone. The second call, THE COLLECTION AGENT HUNG UP ON ME!!!
    My initial letter, requested they validate the debt (I already disputed it with the bureaus twice) I never received a reply. So since it was just a small amount, My second letter offered payment in exchange for deletion. NO reply. So I called them, they told me the had received my letters, but they do not delete accounts, but I could still pay it. Yeah right. I got the managers name from the representative. And mailed the 3rd letter to her attention. I again offered full payment for deletion. No reply. In my call this am, the rep told me that I needed to pay it and the only way they would remove it, is if it was a billing error. (which this in fact was) I told her that my payment would be just money in the bag as the STATUTE of limitations had expired last month. The rep told me that I didn't know what I was talking about and they had 7 years. I responded by telling her, that they had 7 years to REPORT the debt, but in Arizona they only have 3 years to COLLECT on it. She responded with " Goodbye maam!" and HUNG UP ON ME!!
    I am really tired of dealing with this account. What should I do next? Any suggestions would be greatly appreciated.
  2. lisa

    lisa Guest


    That is so weird. I had almost the exact same conversation yesterday with a collection agency who also hung up on me. She told me that the SOL was 7 years and that after 7 years they could send it to an attorney for a "summons" (yeah whatever). When I told her how wrong she was she said "see you in court, maam" and hung up. (This is for a debt which is about 7 years old that the Sol is also expired on.
  3. Crdt Dfnse

    Crdt Dfnse Well-Known Member

    FYI About SOLs

    Reading your post I noticed that you are in error regarding an important issue, if not on the mark in spirit. When you told the collection agent she could not collect after three (3) years, you were mistaken. This is inaccurate because nothing prevents the recovery of money beyond the SOL, as the only action prevented is litigation â?? not collection activity.

    Truly, the collection agency can ATTEMPT to collect indefinitely if they so choose. The SOL only prevents, and acts as a bar concerning litigated issues, disallowing the plaintiff (creditor/agent) from prevailing by suit. Also, I suggest you make certain the matter is limited to a three (3) year SOL. Written contracts in Arizona can be litigated upon for up to six (6) years, although an OPEN account is limited to three (3).

    Keep The Faithâ?¦
    Anthony Villasenor
  4. Pat

    Pat Guest


    You ought to buy a tape recording device, tell collections agents you are taping it, because what she said is worth $1000 for violation of the FDCPA- they can't threaten to sue if they can't legally sue you. If you had a tape, it would be $1000 open and shut in your local small claims court.
  5. Justine

    Justine Guest

    RE: To CreditDefense.com

    To CreditDefense.com,

    You mentioned a limitation on an OPEN account. What does this mean exactly? I have a creditor who placed an account with a collection agency. However, the original account shows on my credit report as OPEN and seriously delinquent. The collection account also appears. Is this what you are referring to? How long can the creditor keep the account as OPEN?
  6. sandra

    sandra Guest

    RE: FYI About SOLs


    Thank you for your reply.
    Can you provide your reference in regards to the information that you have on SOL's?Everything I have is a little fuzzy. I would love more information on this subject. Also, if you can, I would love examples of the different kinds of debt the SOL applies to. From the information I received, the debt referenced in my post..is considered open..but I may be wrong...may you can provide further clarification...
  7. Mo

    Mo Guest

    RE: To CreditDefense.com

    For statutes of limitations in all 50 states for all types of accounts, go tho this link:


    There is a bit of confusion, apparently on the term "OPEN". An "OPEN" account is not the same as an "OPEN ENDED" account. Any kind of account can be "OPEN" (as opposed to CLOSED or PAID or INACTIVE). An "OPEN ENDED" Account refers to usually a revolving account that has no definite period of repayment (such as an installment loan on a car) or a fixed amount (again such as an installment loan). Your Visa, for example, can remain OPEN for 1 or 15 years, and you could have a different amount due every month of those periods. More info at the link supplied above.
  8. Crdt Dfnse

    Crdt Dfnse Well-Known Member

    OPEN Account Clarification

    Sandra, Justine, and Mo:
    With all due respect to Moâ??s assessment of what an OPEN account is, I disagree. The term OPEN (as in account) has nothing to do with debt term (duration) other than how it relates to an SOL, in conjunction with litigation aspects. The definition of OPEN, when considering an SOL, means an â??open bookâ? account. Whereas credit cards, written conditions with or without a fixed term, and agreements signed by one or both parties are contractual. This is how law defines the distinctions for purposes of calculating an SOL.

    Although open book accounts are more often found in commercial dealings, they are sometimes found in consumer transactions too. An open book account, for brevity sake, is an account generally with no written contract; yet some condition for payment exists between creditor and debtor. For instanceâ?¦

    Letâ??s say I hired a web programmer to do some work on one of my websites, and there was no written contract but an agreement to pay as the work is done â?? in stages. So I pay for a few stages but then tell the programmer he/she will have to wait until all the work is done (for some reason), then I donâ??t pay the balance. This could be actionable under the SOL relating to OPEN book accounts, which clearly has nothing to do with duration.

    Another example, perhaps one more folks can relate to, are gardening services. If a gardener cuts my lawn and trims hedges, etc., chances are itâ??s done without a written contract â?? making it an open book account (generally settled at the end of each month). The gardenerâ??s â??booksâ? (accounting) stay open until I pay whatever balance is owed, or other circumstances take place (like my firing the mower-man for ruining the begonias).

    Also, an open book account could be a medical bill; where the consumer agrees to pay for treatment on an on-going basis. In short think of an open book account as a transaction that is dealt with on a pay-as-you-go basis, usually without a written contract executed (signed) by one or both parties.

    Now when you see an OPEN account listed on a credit report, this should not be confused with an open book account. The credit report simply reflects that the account file is still open, not that itâ??s an open book account. If you see an OPEN segment on your credit report, chances are good that you didnâ??t close the account; rather letting it lapse due to non-payment or other issue.

    One of the best ways to understanding an SOL is to look at it this wayâ?¦ Courts realize that claim issues against another should be resolved within a reasonable period. Correspondingly, if a claim is not started within that prescribed time (known as the Statute of Limitation) then it is presumed waived by the one in whose favor the claim initially benefited. Itâ??s a use it or lose it proposition when considering relational state SOLs.

    If youâ??d like to check the SOL in your state go to www.CreditDefenses.com/RCenter.htm where they are listed by state, and reference ORAL/Verbal agreements too.

    Keep The Faith,
    Anthony Villasenor
  9. Steven Z

    Steven Z Guest

    RE: OPEN Account Clarification

    Simply outstanding post and explanation.

    I thank you.
  10. Justine

    Justine Guest

    RE: OPEN Account Clarification


    But did he answer my question? Probably did but I just didn't understand!

    CreditDefense...please take a look at my question again and answer as understandably as possible. Thanks a million!
  11. Crdt Dfnse

    Crdt Dfnse Well-Known Member

    RE: OPEN Account Clarification

    Glad you liked it! :)
  12. steve

    steve Well-Known Member

    RE: OPEN Account Clarification

    OK. What about this. I run a carpet cleaning company. Sometimes customers don't keep their appointments even though all customers are informed of 24 hour notice for cancellations policy. Usually, when I send them a collections notice, they get really uptight, scream legal action, better business bureau, and threaten to tell all the neighbors. A) Are you aware of any statutes that require a written contract for enforcement of my policy, b) Is there a problem with my reporting them to credit bureaus for non-payment? Thanks in advance. Your message was quite detailed.
  13. Mo

    Mo Guest

    RE: OPEN Account Clarification

    Anthony -I actually don't see where you disagreed with my post, as we seem to be saying exactly the same thing. For the purposes of most credit reports, a common and typical "open ended" account would be a revolving charge card, such as a Visa or a department store card. The only discrepancy I see between your explanation and mine is that you construe "open book" accounts as those that are generally without a written contract. In that case, a Visa account would be termed an "open ended" account, but not an "open book" account by your reckoning (as you certaily signed a contract in the form of an application).

    Nevertheless, the point is well made that the notations of OPEN on one's credit report does NOT mean an account is OPEN ENDED (although it very well can be).

    I guess in this case we'll just have to agree.....to *agree*. ;)

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