Need advise on DOFD, SOL

Discussion in 'Credit Talk' started by DNELKITE, Oct 14, 2008.


    DNELKITE Member

    I had taken a CC after college in 06/2001 in California. I lost my job in six months at which point I maxed to the limit of 2500 and had no way of paying this off. This was in 12/2001 when I stopped making any payments. I moved out to Canada for family reasons and I came back to the States in 2007. I settled in Chicago, IL. I got rejected for a car loan and checked my credit report (Experian) and seen the negative items related to my old credit card. TU and EquiFax did not have any of my credit information. I owed $2750 according to Experian.
    I wanted to pay it off and settle that right away. I called the CA about it and they said the CO has closed the account and I would have to talk to them directly. A friend of mine warned me about CO suing me if I contacted them. I left it for a while, but I am desperate to fix my credit and need advise.

    I pulled latest report from Experion and here is what it says:

    Transferred,closed/Past due 30 days. $2,797 written off.

    Date Opened:
    Date of Status:
    Reported Since:
    Last Reported Date:

    Monthly Payment:

    Credit Limit:
    High Balance:
    Recent Balance:
    Recent Payment:

    Account History:
    Charge Off as of Mar 2005, Feb 2005, Jan 2005, Dec 2004, Nov 2004, Oct 2004, Sep 2004
    30 days as of Aug 2005, Jun 2005, Apr 2005, Mar 2004

    Is my DOFD the charge off date ? It should be somewhere around 06/2002 from what I understand. Also, Which state SOL apply to me? CA or IL ?
    The last line from Experian report freaked me a little where they are quoting March 2005 as charge off....How long would this stay on my credit card?
    I also had no public items on my account as per Experian. Please advise me on how to deal with this. Thanks for your attention and help.

    DNELKITE Member

    My Experian score is surprisingly 680...not sure if that is a good or bad thing
  3. greg1045

    greg1045 Well-Known Member

    There have been great confusions as to what state's SOL applies to when it comes to credit card debts and what they're conisidered: written agreements or open ended accounts. I presume credit cards would be considered open ended. California's SOL on open ended accounts is 4 years, Illinois' 5 years.
    From what you posted it seems like the SOL periods are over in both states. And the negative entry on your CR should fall off sometime next year - 2009.
  4. Hedwig

    Hedwig Well-Known Member

    Moving to Canada may have tolled the SOL. That is something else you need to check in your state's laws.

    Also, look at the credit card agreement. Does it have a choice of law provision? For what state?
  5. flacorps

    flacorps Well-Known Member

    Desperation is inappropriate as an emotion relating to this situation.

    Step 1 would be to determine, as nearly as possible, exactly when the default occurred.

    Step 2 would be to calculate, as precisely as possible, 7.5 years from that date.

    Step 3 would be to ascertain exactly who owns the debt. Typically it will be in the hands of a JDB. Large credit card issuers sell first to the major JDBs, such as Asset Acceptance, LVNV Funding, etc. In turn, those companies sell to smaller regional JDBs, who in turn sell to even smaller local players who either pursue debts Buffalo-style (harassment) or through the legal process. Each player uses what computing power it has at its disposal to decide whether to sit, settle, sell or sue at any given point.

    Right now, whoever has the paper likely views it as out-of-stat, meaning that they would not necessarily sue unless they knew the OP had been in Canada and could prove it. They also know that if they have to use a correct reporting date, it won't be on the OP's record for much longer ... unless they illegally rejuvenate (I've stopped using the term "reage" due to confusion with desirable Rule 5000 reaging--and "ReDOFDing" seems a barbarism) it.

    If truly "desperate" I would start with an offer of 20% and deletion from the bureaus (PFD) for a full and final settlment, no 1099-C form to be issued. See where you can go from there.

    DNELKITE Member

    I am not sure who actually owns the debt. Experian doesn't give that information.
    The first CA said that the credit union which issued me the credit card has closed the account and they are no longer collecting the debt.
    Is it a good idea to contact the CO ? They have written off the debt as per Experian.
    I am intimidated that they might take legal action if I contact them.
  7. flacorps

    flacorps Well-Known Member

    Credit unions don't typically sell their burned out debt. The CU may be willing to deal with you, or they may direct you to the new CA, assuming there is one.

    This is going to cost you under $50. If you haven't already done so, pull your own reports from the big 3 CRAs (Experian, TransUnion & Equifax--$9 or free, depending on whether you've used in the last year). Also pull your own reports from Choicepoint and Lexis-Nexis (these are investigative reports). With respect to the big 3 you want to pay special attention to the hard and soft pulls--some may be related to your defaulted debt and may give away the identity of who might be stalking you.

    If Canada doesn't show up as where you've been living on any of the reports, engage with the OC and don't breathe a word about where you've been. See if you can settle it cheap.

    If your absence from the country is noted, you'll need to look into what tolls the CA SOL, and into whether IL borrows other states' SOLs and on what terms before you can make a determination whether it's safe to engage the OC.

    However, as a general rule, CU OCs aren't in a great position themselves to manage litigation on the other side of the country. A first-rate large CA could do that for them, but if they've pulled the assignment from the CA you contacted and nobody's got it at the moment, they're sort of in a poor position to come after you.

    DNELKITE Member

    My Canadian addressed do show up on my credit report from Exp. I looked for toll on California SOL, but haven't been able to determine with any conformity that there is a toll on SOL if I am out of country.

    Would a credit union pursue legal action if I call them tell them that I am willing to pay the whole debt if they update the CR notifications that there is no balance>?
  9. greg1045

    greg1045 Well-Known Member

    You can try, BUT in writing them, not calling. Once you get their promise in writing that they ideed will remove the item then you can pay. If after you pay them and the item is not taken off your report you can sue them for breach of contract.

    DNELKITE Member

    I have only one credit account in my is noted as Delinquent.
    Also, in my account history, this is what I see :

    Account Name XXX CREDIT UNION
    Potentially Negative Closed
    Account # 1908XXXX
    Account Type Unsecured Loan
    Date Opened 6/1/2001

    Account Status Closed
    Mo. Payment
    Past Due
    Payment Status Past due 30 days four times
    High Balance
    Terms Revolving
    Comments Credit line closed-consumer request-reported by subscriber

    Could someone let me know if this is good or bad ??? This used to have a CA information but it seems to have disappeared.
  11. flacorps

    flacorps Well-Known Member

    Edit your post and take the CU's name out. Too much specificity isn't good. Write 'em and make 'em an offer ... say 30 cents on the dollar. See if you can get a negotiation started.

    DNELKITE Member

    Does anyone have a sample letter that I can use to contact my original creditor? It has been so long, I do not remember my account information.

    DNELKITE Member

    Anyone tried the BOA secured visa card? I want to rebuild my credit and wondering if this is a good way to go. Also, do they do a credit inquiry for a secured card?
  14. flacorps

    flacorps Well-Known Member

    Hold off on doing any credit apps. You lose bargaining power if they know you've been seeking credit (whether you got the credit or not).

    Work with the CU first. Then start rebuilding (unless they'll give you PFD because you will be a ghost upon deletion, in which case apply for that secured card before finalizing the settlement).

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