Can a creditor file a judgement after it has been removed from my credit report?

Question

I recently recieved a phone call from a creditor threatening to file a judgement against me and garnish my wages for a charge-off balance that they have doubled since purchasing the account from my original creditor.

There is a catch, recently I had disputed the amount of the debt with experian and they ended up completely removing the creditor from my report.

Now they give me a call and at first I was a little worried, they offered me a settlement of about half the balance then I told them I would call them back. When I called them back they offered a lower balance which I told them I don't know, fax me over something saying that will be paid in full.

When they faxed over the paper it showed the creditors name. I recognized the name and when they called back I told them that they were deleted. They denied ever reporting to experian and that they have not yet reported and I need to settle with them now before they do report.

The debt was from california and the last date before it closed was Sept of 2003.

I also checked out the site you gave me to get the letters but it requires some numbers. I can't figure out which numbers to use.

What is the difference between "Open Account reduced to written" and "Open Account not written."

Answer 1

I agree with Bryon - check the collecting SOL for your state. If you had moved from another state, check that states SOL also.

Just because it is no longer reporting on your reports does not mean that they cannot "legally" file suit if you are still within the collecting SOL.

If you are past the collecting SOL you should send them a SOL letter. Doing that will stop them in their tracks.

While Bryon says it is illegal for a collection agency to file a suit (which it is) he also says that they won't - that is one thing I disagree with him on.

Collection agencies file suits on time barred debts "every day".
IF the debtor fails to answer the summons and to file a counter claim against the collection agency, the collection agency gets an automatic default judgment.

Since many people fail to respond, they get away with it.

For the ones who know their rights and answer the summons and file counter claims - the collection agency would more than likely have to pay them up to $1000 for filing suit on a time barred debt.
Which to collection agencies, having to pay $1000 is chicken feed and worth the risk of filing.

From what you have written, I'm willing to bet you are past the collecting SOL - It takes quite a long time for a debt to double the original amount after charge off, the collection agency is continually offering you a lower amount, etc.

Click on my profile and click on the link to find your collecting SOL. If you find you are out of SOL for collecting, scroll to the bottom of that page and click on the home page. Scroll down to the bottom of the page and click on your state. It should list your state statutes for SOL, which you will need for the SOL letter. Go back to the main page and click on the SOL letter link.

If you find that you are still within the collecting SOL, send the collection agency a debt validation letter.

Always send everything certified mail return receipt, create a paper trail.

If you have any questions on how to use the SOL letter, go to the last link I have listed in my profile and ask your questions in the credit forum.

edit++++++++++++++++
I'm sorry that I didn't see your additional comments earlier.
I hope you see this.

To answer your question on "Open Account reduced to written" and "Open Account not written."

In Ca. - open account not written means when "you" did not actively seek credit with that company. In other words, they had sent you either a card (which they used to do) or they had sent you a pre-approval type of letter soliciting your business.

An open account reduced to writing is when "you" went to them and applied for credit with no prior solicitation of credit from them.
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You said "the last date before it closed was Sept of 2003"

You need to find out for sure if that was the last time you either made a payment or charge before the account was closed/charged off.

If you fall into the "reduced to writing" category, you may probably still in the collecting SOL, though if you are, it's just barely within it.

If that's the case, you might send them a debt validation letter.
Use a bare bones validation letter. Chances are very good they will not properly validate and you may be able to string them along for months keeping them in validation mode.

They would have 30 days to respond to your validation request and you would have 30 days to respond to their attempt at validation - in which you would wait until your 30 days is almost up then send another validation request and state that what they had sent was not proper validation.

If you find that you are out of SOL, your last action was in March, 2003 or you fall under the "not written", then you would use the code (numbers) - PENAL CODE SECTION 518-527
Or, you can use that code and include the whole section that is listed under it on:
http://whychat.5u.com/States/state-ca.html

I still think, if you haven't yet, you should go to the last site I have listed in my profile, well, I'll list it here for you:
http://creditboards.com/forums/

It's a free forum where many of the members, on their own time, have been studying all aspects of credit laws to help those that need it. Quite a few have been doing it for years.

Answer 2

If the original creditor has charged off your account the damage to your credit was done at that time.If no payments have been made since the charge off and your account was sold to a collection company do NOT make ANY payments to them.Not even $5-10. If you do that then the collection agency CAN re-open that charged off debt and sue you in court to collect as you have acknowleged that debt by paying $5-10. My best advice to you is that the debt was charged off and doesn't even show up on your credit so the next time that they call you give them warning that they are harrasing you and to please stop or you will report them to the authorities and DO NOT make ANY payments to them.They will go away and probably sell that debt to another collection company and you will have to go through the whole process again.These companies only pay 2-3 CENTS on the dollar for charged off debts hoping to collect 10cents on the debt or higher.Tell them to all go away and quit bothering you.They WILL! Good Luck

Answer 3

Hi!
What state are you in? You need to take a look at the debt statute of limitations of your state. Do a search on "debt statute of limitations" and see what you can find about your state. There are three types of debt..you need to figure out which category this debt belongs and figure the time frame.

>>>I should point out that the statutes that apply are the ones in the state where you were living when the debt was made..not the state you currently reside. I moved back to Tennessee but had a junk debt buyer try and con me with the "we will sue you" garbage even though the debt was four years out of statute. Hang up on them..I did.

If the statute has run on the debt..they can't sue you. Many threaten to do so..but don't..it's a scare tactic with junk debt buyers.

Please DO NOT agree to payment arrangements..as this can restart the clock in some states. Don't talk to them at all...certainly don't claim the debt either.

Answer 4

Most people dont realize just because something isnt going to show on your credit report doesnt mean you dont owe it. also they can update that file in your credit report and keep it on their longer as long as there is activity meaning they update the account information etc. they have a 6 year statue of limitations. to file a lawsuit. chances are they filed it before the 6 years were up and received the judgement in january 07. now they have 20 years to collect it. however most states will renew a judgement. sounds to me like these people are just going to leave it alone. GOOD LUCK

Answer 5

If the debit is not paid, the debitor can always go to court and attempt to win a judgement. Until it's paid in full for whatever amount the parties decide is "in full", there is the legal option to file no matter what the ongoing negotaitions are.

Answer 6

I don't think so.