Nearing statute of limitations, need some advice?

Question

I have a debt that had a last payment on Dec '00. It is now almost 7 years since this time and debt collector called & argued several points. I understand the morality of paying the debt, but the SoL keeps them off my back after 7.5 years, correct?
I mentioned to him that I am can't pay on the account now, but if certain things fell into place soon I might be able to work something out. I understand the time frame resets once a payment has been made, so I have not done that, though they were desperate to get a $50 good-faith payment. Having stated this possible intent to pay, will they be able to use this recording to weigh against the SoL argument?

I'm not sure if the conversation I had has forced me into paying this debt, or if I should wait out the remainder of the SoL timeframe. Can anyone explain the impact on my credit score for waiting out the last months versus paying it off at 50% now?

Any input is greatly appreciated, thank you!

Answer 1

In some States you have already agreed to pay which restarts the S.O.L. I have posted a link so you can look up your State.

You do not have to worry about it showing up on your credit, nothing restarts that date which is 7-years from the date of first delinquency.



http://www.bcsalliance.com/index.html

Answer 2

And the winner of Studly's "Stupid Answer Award" goes to Precious J.....sounds like it's right from the collection agent's handbook! ;) Do your research dude.

OK, the good part is you have done a little bit of homework. Please take the time to read the link I supplied to below, as it goes into the difference between the Statute of Limitations and the Credit Reporting period...you have these confused.

There is confusion here about if a verbal agreement will restart the SOL.....unless someone can point out a specific law I'm sticking to my own research.....if it's not in writing it's not going to fly in court. Without a clear "meeting of the minds" it's not going to get past the judge.

And I'm glad you saw through the scam the collection agent tried to pull. When they ask you for a "good faith" payment, all they are trying to do get a payment, which will restart the SOL. I'm going to bet it's already expired.

Now, for these preacher types here...the "just do the right thing" folks telling you to pay the debt.....Why?

When you failed to pay this debt, the creditor gave you a choice. Pay the debt or they will destroy your credit scores for the next 7 years. Well, you didn't pay. And they have had this reported on your credit all this time......

Why on earth would you pay the same debt twice?

For now, do this. Stop talking to the collection agent. Send them a demand to validate letter (if you haven't done so already). If you are CERTAIN that the SOL has expired, include wording that this debt is no longer collectible, and they must cease and desist all further communications. In some states, if they continue to bother you over a collectibles debt, you can sue them for that.

Answer 3

First the .5 in the 7.5 is a data reporting period for the Credit Reporting Agencies to account for the time it takes to update records. The debit is still removed after 7 years from the date of last delinquency from your credit report. If your last payment was 12/00 your date of delinquency is 1/01, which is the date you missed the first payment.

Now of course the Collector is desparate to get that $50 because that resets the LEGAL Statute of Limitations which depending on your state has long since expired. Once you pay that they can go after the entire debt in court. The Legal SOL is the period of time they have to sue you and varies from 2-6 years from the date of the last delinquency. As long as you do not sign an agreement to pay or pay any money you have not reset this SOL by just agreeing to it verbally in most states.

Answer 4

You are confusing the 7 year reporting period and the statute of limitations (SOL).

Negatives fall off your credit report 7 years and 180 days from the default date. Payment does not restart the reporting period.

The SOL varies from state to state. The SOL is the time frame to take you to court. The SOL would be an affirmative defense in courts. It does not mean the collector cannot continue to try and collect.

Payment restarts the SOL. In some states offering payment or even just agreeing you owe the debt, restarts the SOL. Moving out of state can even put the SOL on hold.

Answer 5

First of all, quit talking to the Creditor. If it is a credit card
make sure it is 4 years in your state, Some are 10 years,
Write a letter to the Collection agency and ask them
what permission or legal binding contract that you signed
with them that says you owe them the money since they
PURCHASED the debt and should have validated it
themselves before they PURCHASED the BAD DEBT
and when it is past the statue of limitations it should have
never been sold, and they have to tell you how they calculated
what they say you owe and they have to provide you a copy
of the letter of sale, and give them 30 days to provide
this information and if they can't they have to remove the
listing or provide you the information.

www.creditinfocenter.com

Answer 6

You are destroying your credit. Send them the $50 and work out a plan.

I have no idea how old you are, your dreams and aspirations, but it seems that you think after 7 years - you are off the hook?

Is that what you think?

That is not the case.

If you haven't paid on a debt in years, then it is strange that you care about your credit score.

Talk to a credit counselor as soon as you can. It is likely not too late.

This 7.5 years thing does not completely leave after the Sol.

You'll see.

Answer 7

It is possible that you have reset the statue of limitation by affirming the debt only if they recorded your conversation.