     Steven Kallestad (Steve) | Thursday, June 08, 2000 - 05:20 am 
I've read in a lot of different areas "Don't pay the collection agency - the Statute of Limitations has run out" or "In 6 months it will drop off your credit report"
I have no reason to believe that my situation is unique.
My student loans - opened in 1991, defaulted on in 1994, paid completely in 1998 are scheduled to remain on my credit report until 2006. Since they were sold several times, they show up on my credit report several times.
Credit card opened in 1991, charged off in 1992, deleted in 1999 after I challenged it. Just got a letter from a collection agency saying they "purchased" my debt. The SOL is 4 years for this in CA, and they shouldn't be able to make any marks on my credit report since the debt is over 7 years old... Wrong. They will add it as a new collection on my credit report, just to screw me. Should I pay? I can't afford another collection on my credit report. |
| Steven Kallestad (Steve) | Thursday, June 08, 2000 - 08:15 am
I just spoke with a Chris S. on the phone at Capital One (the collection agency). The original letter was sent by an Angela W. Apparently they don't like to use last names there...(I did ask)
I told him that the statute of limitations in California for collecting this debt was four years. He disagreed. He stated that it was a national issue, and that there was no statute of limitations for collecting debt. Rather than argue, I let it go - obviously he wants money from me, and won't admit that he has no legal power to get it.
I asked him about the account, he said that it was a debt from 1991, charged off in 1992. I told him that there was no way he should be able to make a mark on my credit report. He agreed, but qualified it with - the Credit Reporting Agencies have the responsibility of Filtering out old accounts, that the collection agency reports what debts it has.
I told him that at this point I don't even know if that debt was mine in the first place. However, reading in to his doubletalk, I was certain that they would be placing entries on my credit report. (It's happened to me before - although I did not mention that). I told him that rather than dispute the item, I would be willing to settle the amount - If he sent me a signed document stating that they had not verified the debt to be mine, and that they would not place any negative information from my credit report. He said that he could not "Legally" do that... (of course) He said that what he could do is sign an agreement that they would "Delete" any negative items they have on my credit report.
I told him to fax the agreement to me for review, and that I would sign it, if it was indeed acceptable. Payment arrangements would at that time be made. I asked him for his last name. He refused. I asked him for a unique identification number that would prove I was talking to an actual employee of the company. He refused. He stated that the faxed agreement would be on letterhead, and serve as proof that I was in fact dealing with Capital One and that they were bound to that agreement.
I will post the full text of the letter here, when I get it. I will also be asking for advice on whether or not to sign it.
I am considering asking them to sign a document before I agree stating that 1) they have not verified that this debt does belong to me. and 2) That the debt being settled is a charge-off dated in 1992 - and not a new account.
What do you think? Comments are appreciated.
Thanks,
Steve |
| Senator (Senator) | Thursday, June 08, 2000 - 08:42 am
Run, don't walk, to a nasty SOB lawyer. |
| Christine Baker (Admin) | Thursday, June 08, 2000 - 06:46 pm
Wow! I can't believe these collection agencies!
I would NOT pay a penny. Just last week I have also been threatened with neg. credit if I don't pay a debt I don't owe. I'm looking for a lawyer to deal with this.
I do recommend you file a complaint about Capital One with the State, I think I they have an online complaint form. |
| Deborah Jones (Deborah) | Monday, June 12, 2000 - 03:15 pm
It is my understanding that the collection agency can report this on your credit report, but they must use the date that the original creditor put as the 'last date of activity.' The original debt is binding to any and all successors and assigns. |
| Christine Baker (Admin) | Monday, June 12, 2000 - 08:41 pm
To the best of my knowledge, you are correct. |
| Steven Kallestad (Steve) | Tuesday, June 13, 2000 - 08:55 am
Deborah, Christine,
I don't understand the comment about reporting this to the credit agencies. Since the debt was charged off in 1992, it should never be on a credit report again, right?
I sent four letters to this collection company - two certified, two regular mail, and a fax telling them to stop communication with me, and that I refuse to pay the debt until they prove to me that the debt is indeed mine and that I am legally obligated to pay it.
If I hear from them again, I shall retain a lawyer to deal with it - but I'm not willing to pay for the lawyer at this point.
If the original debt is binding to any and all successors and assigns, and the SOL has run out - am I still legally bound to pay the debt?
Thanks,
Steve |
| Christine Baker (Admin) | Tuesday, June 13, 2000 - 03:19 pm
No Steve, what we meant was that it is a valid debt until the SOL expires. And just because a collection company purchased a debt doesn't restart the clock.
It's the ORIGINAL date we go by, so you're ok.
Many times collection companies CHANGE the date and then it shows on the credit longer, unless you dispute. |
| Steven Kallestad (Steve) | Wednesday, June 14, 2000 - 08:20 am
Thanks Christine - I really appreciate your help. Surprisingly enough, There aren't many resources on the net that give Real Advice, for free. This is the only site I've found without some alterior motive (i.e. high interest loans for sale, credit reports for sale, etc.) What you have done here is great, we all thank you. |
