This came up in our chatroom. When a collection agency can't legally collect due to SOL and can't report due to 7 year clock. How can they pull a hard inquiry on your reports and say it is for collection purposes on a uncollected debt?? thanks
Just because the sol expired does not mean the debt is not due. Even if the debt has surpassed the reporting time and collection time it is still technically owed. The statute may not even protect you against a judgment if you do not use that as your defense. I have seen many people with expired debts end up with judgments all because they did not know about the sol. If you ever get served on an expired debt it is up to you to tell the court that it is expired unless they notice first, which is rare. As for the collection tool of checking your credit, I am sure some here will say it is a violation of the FCRA under "Permissible Purpose" and to file suit. I usually just advice the collector that the debt is both past the sol for reporting and collecting and then I document everything and ask why he is running my credit when I have advised him to cease & proven the debt to be expired. That usually puts a stop to it and if it doesnt after your verbal and written warnings then you can say he is harassing you. Of course, jut my opinion and I am not a lawyer! Good luck mom! Momof3 wrote: ------------------------------- This came up in our chatroom. When a collection agency can't legally collect due to SOL and can't report due to 7 year clock. How can they pull a hard inquiry on your reports and say it is for collection purposes on a uncollected debt?? thanks
I agree w Kristi A SOL varies by state, and debts get sold to collection agencies in various states. A SOL is an affirmative defense which must be raised if the credit contract is signed in one jurisdiction and a lawsuit is brought in another. If they try to collect, mention the SOL and cite the state statute (where the contract was signed). Let the inquiry go.
Kristi/Pat, This also came up. I have a friend who is trying to get his credit straight after a divorce. He was co-signor on a car for his wife (now ex-wife), but she was the main owner and made payments. When they divorced, the divorce decree stated that she got ownership of the car. Now, he's been trying to get his name off of the car, but GMAC is telling him he can't. The fact that they are divorced and the decree gives her ownership doesn't matter to them. He says it's damaging his credit, because she frequently makes her payments 30 days late (more than 1/2 the time). What can he do? They were married, made the loan, and divorced in MO. They both still reside there (if that has any bearing on the issue). Thanks for any help you can give. He really wants this resolved. Marla
I suggested that to him last night. I just hoped that if anyone had something else to add, I could pass that on. Thanks, though. Marla
Did not believe me Mom? Told you so. But I understand you wanting to hear it from the pros. Have you packed yet? roni. Momof3 wrote: ------------------------------- This came up in our chatroom. When a collection agency can't legally collect due to SOL and can't report due to 7 year clock. How can they pull a hard inquiry on your reports and say it is for collection purposes on a uncollected debt?? thanks
RE: ?? I know mom that it was marla's question.. You dont remember, you and Marla asked this question last night in the chat room, I told you the sol is experied but you still owe it and they can sue you. You just have to appear in court and use Sol as your defense and probably win. So that is why they can still "try to collect" in so many words. I guess you didnot read it or just forget. no love lost. roni.
