OK, so I had a car repossessed about 6 or 6 1/2 years ago. It is about a $7,500 debt and has been sent to more than one collection agency and they've offered me a 50% settlement. I haven't made contact with anyone in probably 6 years.
My question is, is should I pay this money because I'm ready to start a new chapter in my life that includes rebuilding my credit or should I just wait for this to be erased off my credit(which will be when)? As for doing the right thing and paying a debt, I was scammed by this company so me paying the money has nothing to do with them and everything to do with my personal credit intentions.
Also, I don't plan on buying any big purchases, i.e. house or car, in the next two years at least and don't need credit cards, so is waiting the best options?
2007-03-10 13:32:30 · 7 answers · asked by Phat Kidd 5 in Business & Finance ➔ Credit
The statute of limitations (SOL) for collecting on a repo falls under the UCC with a 4 year SOL. The SOL starts to run the day the vehicle was sold that created the deficiency.
The reporting SOL for a repo is 7 years from the day the vehicle was sold that created the deficiency.
You are past the collecting SOL. You are not legally bound to pay.
If you want to pay, send them a debt validation (DV) letter first, make sure that not only are they requesting payment for the legally correct amount but also make sure that they have a legal right to collect the debt (sometimes, especially with older debts, collection agency's may try to collect on a debt they have no right to collect on)
After their validation, send them a pay for delete (PFD) letter if they are reporting on your credit reports. Send everything certified mail return receipt requested (CMRRR)
Keep in mind that if you make a payment agreement with them to pay a portion of the debt as payment in full, you may re-set the collecting SOL and they may then legally sue you for the remainder or sell the remainder to another collection agency.
Or, you can send them a DV, CMRRR, and after they respond or 35 days have passed from the date they signed the green card - send them a SOL letter CMRRR. A SOL letter basically tells them the debt is past SOL and they cannot collect on it - or sue.
If they are reporting on your credit reports and they are reporting inaccurately, you have a legal right to dispute the inaccuracies in their tradelines
You might look in my profile and do some reading on the links in there.
Learn your rights and how to use them.
2007-03-10 14:08:55 · answer #1 · answered by echo 7 · 1⤊ 0⤋
I'm a CPA, and I've seen a couple things that bend the general rule. Some places like the Federal Student Loan program, will re-classify an older school loan, ending in "A", and call it "B". Not only has the older debt been renewed another 7 years, it now includes interest and penalty. I also had a client that had many smaller medical bills on her report. I urged her to pay them, some through a collection agency... Wouldn't you know it - another collection agency smelled blood in the water, and tried to collect money owed on a furniture loan - that was older than 7 years and not even on the Equifax report! Long story short, pay what you can, esp. if a small amount merits its own row or listing. The only sure way to make stuff go away is by paying, not waiting for creditors to give up!
2016-03-28 23:41:58 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Well I have experience in this one (unfortunately). Many years ago an ex-wife left me with some serious debt and over the years of course those companies sought to collect with me using every threatening tactic in the book. Ultimately, I knew after 7 years (as long as I didnt' start paying them!!!) it would all be off my credit report. And, I'm happy to report that's exactly what happened. Hang in there buddy.
2007-03-10 14:02:32 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It can vary from 4 years to 10 years before something is taken off your credit report. It depends on what the actual debt is and what state you are in. There may be other variables as well.
2007-03-10 13:47:51 · answer #4 · answered by LYNN W 6 · 0⤊ 0⤋
what happened to Adam B, happened to me. Bad stuff that I had on my credit report from way back when I was in college did get wiped off my credit report. You cant send them a single payment because the 7 years start from the last payment that they have received from you.
Also, If you settle a debt and you negotiate $600 or more they will write it off on their end as a loss AND the IRS may send you a w2 on that money you saved. be careful.
2007-03-10 15:47:18 · answer #5 · answered by Liz B 1 · 0⤊ 0⤋
You should try to pay it off, so you dint feel like you have something hanging on you. You need to try to settle with payments , or full amount around the original you financed for. Dint settle for paying twice, or even a quarter some that the original amount.. That's the way to do it.
2007-03-10 22:03:25 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Wait it out...and in the meantime, try to get something good going on your credit report if you haven't already.
2007-03-10 18:21:43 · answer #7 · answered by Anonymous · 1⤊ 0⤋