|05-29-2008, 10:31 AM||#1|
Ring of Famer
Join Date: Mar 2005
Location: Murphy TX
OT: FLORIDA BRONCO Question
You posted this before and I was wondering if you can help me.
I was soooo hoping you'd say Texas. Beautiful, just beautiful.
Luckily you live in "debtors haven" as TX is very protective of consumer rights. I'm not sure how much you know about credit and collections, so let's start from the top. Bear with me, as this will be a long post.
First, there are two timelines you need to be concerned with. First is the statue of limitations, which is the length of time you have a legal obligation to repay the debt. The next timeline is the 7 year reporting period established under the Fair Credit Reporting Act (FCRA) which means that negative items can only be listed on your credit report 7 years from the date of first delinquency.
It's important to understand that the SOL can usually be reset by making a charge, payment, or written agreement to pay on the account...but that is totally dependent on state law. Now the 7 year reporting period can NOT be reset under any circumstances. It's important to remember that because many people as misinformed and believe that making payments or the debt being sold to different agencies will restart the 7 years...not true.
Now like I mentioned, TX is a debtors haven, and the SOL there is 4 years so Sprint has already lost their right to sue her for this debt. Basically they are a barking dog with no teeth as they can only attempt to harass/bully/intimidate her into paying and continue reporting this to the credir bureaus. Now you said this debt was from 2001, so the listing will be dropping off her report this year, and with the debt being that old it's having very little effect on her score anyways.
I also forgot to ask if they were pursuing this debt and how aggressive they are being about it. If your fiance wants, she can send them a cease and desist letter stating that the debt is past the SOL and they are not allowed to contact her about it in any way and by law they must abide by that or they are guilty of FDCPA violations and can be sued. We like to call this the FOAD (eff off and die) letter.
One important reason for sending this letter is that it proves (if you send it certified mail, return receipt) that the creditor was aware the SOL was up, so if they attempt to file a lawsuit against her, not only will the case get thrown out, but the creditor could be charged with fraud.
Beyond that, have her pull her credit reports and make sure the date of first delinquency and other information is correct. Being so old, I'm sure this debt has been sold to a junk debt buyer and they are notoriously sleazy and will sometimes attempt to illegally re-age this debt to keep it on her reports longer and/or show it as a more recent debt.
So anyways...here are the cliff notes.
- SOL in TX is 4 years.
- Fiance does not have to repay debt
- Listing should be falling off credit report this year
- Send Sprint/Collection agency a FOAD letter
Let me know if you need any more help or info.
Ok, I found out she owes money on the sprint phone bill like i mentioned. How old it is, I don't exactly know. Her credit report doesn't list it so we have no idea the exact date. I do know that it is atleast 4yrs old. I contacted the debt collection agency and they told me that they took over the account 2 yrs ago and it shows on the credit report.
My question to you is:
1) according to SOL, she no longer has any obligation to pay this debt, is that correct?
2) is their anyway to correct her credit, because they keep putting a KD remark every month?
3) If i do pay the debt, how much will it affect her credit?
4) the collection agency is trying to settle for a lesser amount, should i go ahead and pay the lesser amount or the full amount?