Hi and thanks ahead of time I have recently discovered the awesome creditnet. But before that, I recently have began cleaning my credit up. Ironically, I got call from CA about old debt. Like an idiot trying to clean up my credit I made a pmt. The guy said they would.settle.for 975. ( debt was 1600 orig.) They asked to set up.two pmts. The first one went through. Today I called bank cancelled the second and called them up for a PFD before I pay any more. They said they don't do that. I am new to this so I'M not sure what to do. I know I probably started my SOL again right? Should I settle for.the 975 still, ask for an agreement, pay in full, or what? Just need to know how to best handle it today. Also, can they electronically debit my acct for a different payment unauthorized?? Thank you tons!!!!
Welcome to Creditnet! Depending upon your state laws, making a partial payment could have reset the SOL. Did you sign any type of agreement when you agreed to settle for $975?
No I didn't sign anything...I'm in florida. I did call today and ask for either a PFD or non disclosure in a written agreement in return for payment. They said probably no way on PFD and they already do not disclose to anyone...not sure I am asking for right thing. I am so bummer I paid that 498 already, but before I spend anything else want to be prepared. I'm thinking either I get the agreement and pay, or they say no and I just suck it up on my credit . If I settle without PFD or anything, it doesn't even improve my credit is what I gather?? Thanks!!!!!
The option that is best for you depends on a number of things, Josh hit on the main ones. Your state, if your state resets the SOL on payment, any payment brings back the ability for them to sue on the account. The ability of them to sue, can give them a powerful negotiating hammer. Whether they may sue depends on a number of factors, and again there are no certainties, I've seen companies sue for under $100, and companies not sue for several thousand. But in general, the threat of suit could be measured by the amount of the account (larger debts are more likely to make it worth their while), and the distance the collection agency is from you (although they can hire an outside lawyer to sue - a closer CA could more easily file in your local courts). Other things that could affect what is best for you is (a) whether it's reporting on your credit reports, (b) how it's reporting on your credit reports, (c) how it could potentially look on your credit report. There are accounts that even though they are negative, the score effect of the POSITIVES of the account, age, balance, credit limit, OUTNUMBER the score effect of the NEGATIVES of the account, late pays, payment history, charge off, etc. Some people then post asking why an account that was on their credit report since the early 90s with a great payment history up until 2010, tanked their score when they fought so hard to have it DELETED. If the account has a lot of good factors, and a few negative ones, even targeted disputes could backfire and lower your score if the whole tradeline is deleted. Most times when a CA says that they can't do a PFD, they rely on an interpretation of the FCRA which says that they can only report 100% complete, accurate and verifiable information. Which ironically is the same thing that we focus on. The difference is that they have the mistaken assertion that that means that they have to report EVERY ACCOUNT, instead of for EVERY ACCOUNT THAT THEY CHOOSE TO REPORT, they must report 100% complete, accurate and verifiable information. Electronic debits are something that can be tricky, which is why it's beneficial to have the written agreement (even if you have to write it yourself to verify the agreement). Unless you have something in writing that says the only payments that you authorized are one on xx/xx/xxxx for $xxx.xx and one on xx/xx/xxxx for $xxx.xx for a total payment of $xxx.xx, it can be a "he said, she said" if they alter the payment arrangement. Electronic debt rules also changed greatly since 9/11, with "Check 21" (The Check Clearing for the 21st Century Act). Pre-9/11, most checks went through manually from one person, to their bank, to the local federal reserve bank, to the drawing banks local federal reserve bank, to the drawing bank; with the money then making the same trip back to the person's bank. With nationwide transactions coast-to-coast, we were looking at a long float time, which people took for granted. Some companies may have displayed signs saying that "returned checks could be electronically debited for the original amount, plus the return fee", IF that sign is clearly displayed so that every customer can see it, then they could debit the amount for an amount different than the original instrument.
No I didn't sign anything...I'm in florida. I did call today and ask for either a PFD or non disclosure in a written agreement in return for payment. They said probably no way on PFD and they already do not disclose to anyone...not sure I am asking for right thing. I am so bummer I paid that 498 already, but before I spend anything else want to be prepared. I'm thinking either I get the agreement and pay, or they say no and I just suck it up on my credit . If I settle without PFD or anything, it doesn't even improve my credit is what I gather?? Thanks!!!!!
Well I used prior posts to navigate my research and...I have revived my ZOMBIE debt by making a payment the other day, and now my SOL is starting over (I am in Fla. ). I was afraid this was the case. The CA lied to me about the date of last activity, and it was in fact a lot older. Even about to come off mt CR. Now they got my 498.00 dollars, and I have a fresh SOL. It is totally "re-aging" on behalf of the CA, but I'm afraid it is too late. I am thinking I will call them tomorrow and let them know they lied to me about the age of the debt, and it is a violation of FDCPA. Not sure what stance I should take after that as far as agreement goes? Also, they may very well laugh in my face when I tell them I'm not paying anything else? What should my next move be?? Thank you so much...
Well, if the CA lied about the age of the debt, then you have them on an FDCPA violation (of course, this is why it's good to remember going forward to get everything they say in writing, or to MEMORIALIZE everything they say, in writing, if they won't put it in writing). Any time that they say anything that is not 100% true, in the attempt to collect the debt, they are making false and misleading representations. IF it were me, I would write them a letter demanding that they compensate you for $1,000 for the false and misleading representation about the alleged debts date of last activity. The suit itself is not hard to write, and your local federal courthouse may have a template that you can use for formatting the complaint.
lcook, the debt will still fall off of your credit report the same time. The 7-year reporting is based off of the Date of First Delinquency.
Thanks and here is a follow up. I have extra time this morning to dive into all these I did consult an attorney who drafted two letters CMRR letting them know they provided false misleading info, etc. My goal was to at least get my 498.00 back. They NEVER responded back (my attorney is gone due to breast cancer now ) They did, from what I can tell, change my credit report. I received an alert that an update was made to my CR THAT THE BALANCE OF THIS ACCOUNT WAS NOW 0.00. I am not sure at all what this does for me?
