I had an old car loan that I incurred with my ex that he defaulted on and it was voluntarily repo'd. It was on my credit but dropped off last month and I closed on my first mortgage - yeah! The SOL is up on the debt. The day I closed on the house I came home to a letter from a CA demanding payment for $8K. I wrote them requesting validation. I received a package back from them of documentation for validation and a demand for payment or settlement of the debt letter. I don't want this to pop up on my credit because I want to do a Home Equity Line of Credit and their is no way I will get approved with this on my credit report. Do I write them a letter to settle the debt but I don't have the cash flow to do so because it went to the downpayment on the house. Any Advice is greatly appreciated. The only thing I have going for me is the SOL passed two years ago.
If the SOL expired why do you have to pay anything? Just to keep it off your reports? When is the 7 year reporting clock up? Most state have an SOL of 4 years, and if that ran out 2 years ago then you are very very close to the expiration of the 7 year reporting period as well. What is your time frame on the HELOC? You may be able to just ignore them for a bit, and wait for the 7 year period to also expire. HOWEVER, make sure you keep a printed copy of your reports to make sure the suckers don't try to reage the account on you. Poochie
I'm sorry - I just reread your post. If the 7 year clock AND the SOL are up, tell them to pound sand (thanks Jlynn). There is nothing they can do and I would threated to sue their as**s to kingdom come if they tried to put it on your reports. They're just bottom feeder CAs trying to scare some payment out of you.
How do I keep the CA off my credit report from reporting this debt again although the original creditor tradeline dropped off last month. Do I write the CA again and request more information to stall them until my Home Equity Loan is approved. I'm stressing over this although I know I can't be sued because the SOL has passed. Any advice of what I should do from here is appreciated - THANKS!
If it has been 7 years since the date of last activity and the OC TL has fallen off your report there is NOTHING they can due to you. The date of last activity rules the 7 year reporting period. They can come after you for as long as you want but they can't report it on your file and if they sue you for payment you have an affirmitive defense. IF they put it on your report illegally they are liable for damages in federal court - more so I think if you are denied a loan as a result. Make sure you have a copy of your report showing the date of last activity for the tradeline so you can dispute it if it shows up on your reports with a re-aged DOLA. Meanwhile, one of the experts on this board can advise you better but I would suggest you send them a letter telling them you will pursue legal action if this account shows up on your report and reference the DOLA, state SOL etcl. Have you applied for the HELOC yet? When did you receive the demand for payment? If you are within the 30 day validation period you might be able to demand validation to keep everything quiet but I personally would take a hard-nose approach. I hope butch, Jlynn, Hiding, or one of the other gurus weighs in with their take on it.
Thanks so much for your advice I so appreciate it. I'm green to how to fight this but what I gather from reading from the boards if they try to sue me for the $8K it's up to me to bring up the SOL defense. What I don't understand is although the Original Creditor came off my credit after reporting for seven years as derogatory debt can the CA who is now working for the Original Creditor put this back on my credit for another 7 years? I'm sorry for my ignorance but I just don't know. If anyone has a letter I can send the CA I would greatly appreciate it. I sent them a validation letter and they sent me back a stack of stuff - the signed lease contract for the vehicle and a bunch of computer print offs this was sent to me on April 5. What's my strategy now - again I don't need this on my credit with me closing on the Home Equity Loan.
Re: Re: What's my Strategy Now? You REALLY don't have anything to worry about. The CA CANNOT re-age the debt (unless they're VERY foolish and want to give up a lot of money in violations). It sounds like they're trying to scare you into paying. Call their bluff! And if they they DO attempt a judgment against you, you NEED TO APPEAR IN COURT and bring up the SOL as an affirmative defense. And most of all, don't let this stress you out. That's a favorite tactic of the CAs, just to get you to pay up when you really don't need to pay up!
Re: Re: What's my Strategy Now? aah, they targeted with you with they saw mortgage inquiries. Some CA's are alerted to this by CRAs, and why we suggest opting out before applying for a home loan. It seems to stop that nonsense. Since you are stressing yourself out, go ahead and send the validation letter. As mentioned, it can't legally be placed on your credit report, but how many CAs follow the law? This will double-protect you, and will hopefully be like a dose of valium for you! Once you close on your HELOC, then you can send them the pound sand letter. BTW I'm not the originator of that term...not sure who here was, but I always like it
Re: Re: What's my Strategy Now? TRUST ME . . . I opted out long ago so I think this is a bottom-feeder looking for some cash I don't have to pay. The Bottom-Line is do I just ignore the validation information that they sent me on April 5? Or do I send them some type of letter to let them know . . . Go Pound Sand Thanks for letting me know they can't legally insert this derogatory tradeline on my credit again because I already served my time of 7 years from the Original Creditor I don't need a CA on my reports for seven more years! I JUST got my credit scores back up - THANKS to all the wonderful folks here who share their knowledge on thse boards it's allowed me to keep a few strands of hair!
