Received a Summons from Arrow Financial on Saturday. Called today to try to settle and they said no. They are looking for the full amount of the settlement ($1800). They said I can set up a payment plan w/ half down and monthly payments, but in order to prevent a judgement against me, I would have to pay in full by the 8th. The account was a Citibank Visa opened in Feb '94. It was closed by Citibank in Dec '96 and bought by Arrow in Feb '02. The attorny I talked to (theirs) said the last purchase shown was in Apr '96. SOL in IL is 7 years and that's 6 months away. Do they have me? Is there anything I can try. I'm getting married in Nov and I'm a bit short on money (but I don't want a judgement on my CR). HELP!!!
you need to check the statue of limitations on this type of debt for your state. in texas, it is 4 years. They can report it for 7 years, but after 4 they cannot sue you for it legally. In illinois the statue of limitations on credit card debt appears to be 6 years btw.
Your best bet is the SOL defense. First of all, be sure you've been sued. Is there a docket number on the summons? Call the courthouse and see if a suit has been filed. According to www.creditinfocenter.com the SOL in Il. is 6 years. When was the last time you were continously delinequent or, last made a payment? That will be when the SOL will start.
Thanks for your quick help. I was frantically trying to search the IL SOL and came back w/ answers of 5 and 6. Either way it's in the clear. My next question is how do I find out about the last time I made a payment? Do I call the CC? The amount their trying to get from me is the balance ($600 something) plus interest from Dec' 02 (another $600 something from when the account was closed).
Do you have an old credit report? Look at the chargeoff date. The last time you made a payment would be appx. 6 months PRIOR to chrageoff. You said 12/96 is the date the accoun was closed. Did you mean to say chargedoff? If so, the last payment was probably in June of 96. BTW, find out for sure if you've been sued. If so, you must respond and raise the SOL defense in the response. Go to the FAQ thread and find Why Chat's site. It's a goldmine of info on SOL defenses and your state law.
Hopefully the statute of limitations is 5 and not 6 years. The thing is, that the changes in regulations were right after this time frame. Back in 1996, the laws weren't clear on how long a company could wait to charge this debt off. Do you have any papers from the oc stating that your account was closed before Dec 96? Dig, Dig, Dig! The SOL started when either the consumer made the last payment, or when the company charged the item off, etc. If you make a payment on this debt, you start the SOL all over again. Don't pay yet!!!!!!!!!!! They are playing on your ignorance. This is what I think. The date of last activity would be April 1996, because that is the last time there was activity on the account. Apparantely, their attorney does not show any payments on your account after this, or he would have used that information to keep the SOL going longer. It sounds like he is using the new laws to collect this account from you. The SOL and the reporting peiod is confusing. The more I think about this, the more confused I get! It sounds like he is using April 1996 and counting 180 days from that to use as a chargeoff date maybe. Because this is October! It sounds like he is using the 180 rule for charge off and the reporting period instead of the actual date of last activity for the SOL. You need to look up the SOL in your state laws yourself, or call an attorney and ask them to point you in the right direction. I'm in Ohio and it is under "Limitation of Actions". Don't take anyone's word for this. Print it out. Get your ducks in a row. Do not listen anything their attorney tells you!
So... Let me run my plan of attack by you veterans. I called the Cook County small claims courts and they said I have until the 8th to file an appearance. The lady I talked to said if I got a Summons that a suit has been filed. With that said, if the SOL is 6 years and the date of last activity is APR '96, all I have to do is file my appearance and then claim SOL. Correct?
AS I said before, go to Why Chat's site and find applicale Il. law. But, in a nutshell that's what you want to do. Of course, when they send a trial date you have to appear for that!
LISTEN TO THEM!!! If you don't believe me read me previous post about 5 days ago. I panic when I got a judgment and gave them whatever they wanted. Turns out the SOL was UP for this debt and I didn't know about the laws or my rights. You MUST raise the SOL in court. The judge won't do it for you. Start getting your stuff together and talk to whoever you need to talk to. I'd rather save someone else since I couldn't save myself. At least you have a chance. I don't except for the fact that I think this company who sued me is a fraudulent company. Go to Ohio state's pages and find the law that list the SOL and then call an attorney to ask for advice.
So the only way to possibly avoid this whole court thing alltogether is to get an atty. then? What a hassle. Getting to Downtown Chicago by 9am is going to require me to leage here at 6:30. Thanks angain for all of your input.
Who said that? You need to file an answer stating the sol defense. You can do that yourself. You don't need an atty for that. They have already told you the only way they will drop it is for you to pay them. Why do you need an atty for that? I wouldn't pay them though. The debt is "stale". Just do as was advised above.
I guess that's possible. But, if he/she has an old report showing the last activity date, it will be difficult for them to get away with it.
I actually spoke to Arrow and they told me APR 96 was the last purchase made on the card. I know I stopped making payments well before that.
Oh and they said that the card was "closed" in Dec '96. They actuall didn't acquire the account until Feb '02
I have posted on my website complete directions for filing an answer to a time-barred lawsuit.(to be used only in an emergency if you can't get a lawyer)It is at the bottom of my page.
Last week, someone posted this law firms web site. They are looking for information about CA's that buy out of statute debt. www.edcombs.com. Click on "special" and they list the firms they are trying to investigate. Arrow is on the list and, the law firm is in Chicago.
