Hi all...would appreciate your advice...new to this, but have put in about 200+ hrs so far with research! I have been paying a CA for 2 years with monthly payments--they bought my original debt from the creditor (4 accts at about $30,000). I paid the orginal creditor payments for 2-3 years as well, until they sold the debt to this CA, as the original creditor went out of business. Now as I start to open up my eyes and dig myself out of debt, I see I have been going about this wrong, but at the time so overwhelmed and intimidated. I would like the CA to validate the debt as the original creditor went out of business. I wonder if I can still ask them for DV at this late date or does paying it validate the debt? I just read that it is best not to have my debt sold as "Fair Issacs rates the new collection agency by date assigned or opened, not DOLA." Is this reaging? (which I thought was illegal) If this is the case, should I just deal with the first CA? The original creditor debt is due to fall off my CR's early next year, along with the first CA (the one I am dealing with now) and I want to make sure it continues that way...should I bite the bullet and pay it until both fall away, and then work on debt validation? Am I opening up a can of worms now? I just found out an inquiry came up on my credit report from a new CA, so I am sure they may be looking at selling it. My thought is that once they sell it, I can then ask for debt validation which I doubt they can prove. I am self employed, but own a home that I would like to sell, and wonder if I should sell the home first, before opening up this can of worms, as I am trying to clean up my life and credit, but do not have the settlement $$ at present if it came to that. Any advice is appreciated...thank you ahead of time, lorree
The potential sale of the debt is pretty much out of your control. They can sell for any reason and at any time. It is an open question as to whether the new holder will honor whatever agreement you might have had regarding payments. If there isn't some sort of written agreement regarding the payment arrangement, there is little you can do. In any case the new JDB may not consider themselves bound to any previous agreement, and it will be up to you to establish that they are. The sale of a debt to a new JDB, however, in no way changes the date of first delinquency (DOFD) which governs, by statute, the date when any TL associated with that debt will fall off your credit report (widely recognized as 7 yrs + 180 days). Some questions you'll need to answer: When did the account(s) go delinquent? What state are you in? What is the SOL in your state? What additional state-enacted consumer protection laws might apply to your case? Much of what you choose to do depends on what you want the outcome to be. How do you want your CR to read when all is done? You could DV the new JDB and sit back and wait. You could continue to pay. You could wait out the SoL on the debt and the SoL on the reporting. You could dispute the tradeline(s) with CRAs in an effort to clean any negatives off. Your actual position in the legal landscape will show what options are available and which might be best suited to your situaion. It is best to consider your destination before you look at the roads you might travel. Give some more detail. The good folks here can show you a range of routes.
Thanks! I did have a promissary note as it was a private student loan that I defaulted on and now that company is out of business--nothing federal and they sold it as debt before they closed down. I am not sure they inherited the note I signed...for monthly payments. Once I asked for DV, I think the CA put my debt on the market as I see inquiries on my CR from CA's. I actually missed a pymt before a few months back and they must have sold it, but once I paid my payment, they ended up getting the debt back as I never got another letter from the new CA...unless it was assigned. My state SOL states that once you pay, it restarts the SOL--so it running out is 7 yrs away. I just wonder if the next CA is going to be worse and try to take me to court and pay the whole thing...the one now is happy with the monthly payments. I was thinking if I sold my home and as I am self employed, it would allow be to be more under the scope until things settle, so I have more choices to settle with them or allow the SOL to run and DV...I question as I have a home if I am more of a sitting duck for these CA's. Nothing has happened with other large CC CO's, but my credit report was so bad and debt ratio so high and I never answered any letters from them. Now many CO's are schedule to drop off and I am working to rebuild my credit. My instinct tells me to stay low, but I am not sure and looking for people who have more experience than me. Thanks again
State SOL for the debt may not be 7 years; for the a negative on your report, it is 7 yrs +180 days. If you reaffirmed the debt or had it rehabilitated, it is like a new debt. DOFD is when the new debt went delinquent. Are you in a state that has a homestead exemption statute? If yes, filing a Declaration of Homestead will prevent any creditor (other than the mortgage holder(s)) from $x of the equity in the home. Filing the declaration is always a good idea. If you are comfortable with lying low, then it is an option. And depending on the age of the debt, a relatively viable one. I would not avoid any letter you receive from a CA. While it may not provide a defensible legal umbrella in a specific circumstance, a DV is always in order and can make a CA think twice about proceeding with collection.
Thanks Oracle...it is not a rehabilitation issue anymore and my state SOL states once I pay anything it restarts..so it is about 4-6 yrs from now if I choose not to pay. I do have a homestead! The avoiding the CA letters was a good thing back then as I would have paid them and run myself more into the ground than I did, as I was not self empowered with any of the DV issues, etc, but now I need to move forward with my life. I think by me talking it out here, that I may see if I can stay with this CA for awhile longer while I get myself further in order. If they have sold it, then I will go the DV method and play hard ball. They have played fair with me so far (they are getting their monthly $$), so until I am ready to really rock and roll...best to play it safer for now. Thanks!
Oh...I am curious...if you do not have a home, can they come after your bank account or other assets? As I am self employed, I guess that is not an issue of garnishing wages. I think that they would have trouble actually locating me as well without a home address.
It depends on your state law. You need to check your state statutes or call an attorney and ask what can be garnished. Laws vary from state to state.
As Hedwig says, check the laws of your state. Except in limited circumstances, e.g. certain state agencies, attachments and garnishments will require permission of the Court.
