Dear Michael: “My daughter has medical bills from 2008 when an emergency situation arose and she was not covered under insurance. She recently checked her credit report and contacted the collection sites to see if they were really hers. If you contact the collection agency, does this restart the ‘7.5’ years on your credit report? Would it make any difference to see when the last contact or mail was sent to her? What if she didn’t live there anymore and the mail was returned to sender?”
That 7 and one half year credit reporting time frame is never really restarted unless an account is brought completely current. When a debt stops being paid, or perhaps in the case of a medical bill that never saw a payment, that then appears as a derogatory on your credit reports, is when the credit reporting clock starts ticking. Calling debt collection agencies and lenders about a debt does not change anything about credit reporting.
I do see people confuse restarting credit reporting limits with how calling or sending letters to debt collectors might restart the time limit to be legitimately sued for collection. I am going to post more than you were potentially asking about, because I do not think I have a dedicated post about how verbal or written acknowledgment of a debt can restart the time collectors must follow in order to file legitimate lawsuits.
Acknowledging or Reconfirming a Debt Passed State Time Limits to Sue
There are state specific laws that govern when your debt can be “reset” for the purposes of suing you in court in order to get a judgment and expand their options to force payment. This is commonly referred to as acknowledging your debt, or reconfirming it. More often than not this happens with a debt collection agency or debt buyer.
Most state laws speak only to reconfirming your debts and resetting the SOL to sue when you submit a written acknowledgment of the debt, or remit a partial payment (no matter how small). When in doubt about this issue, you will want to speak to someone with experience in consumer law and how your state courts have ruled on this issue in the past.
There are places online you can read about only negotiating with debt collectors in writing. And I think, over time, people have blurred the line of what debt collectors can legitimately do to sue, with credit reporting limitations.
Sending debt collectors only written offers to pay a reduced lump sum to settle debts has long been bad advice, as those written offers to pay can mistakenly restart the SOL to be sued. Negotiating over the phone is preferred, followed by any written agreement being sent by the debt collector, and not you. Are there exceptions to this? Absolutely there are, but this is enough of a concern to suggest phone calls over written communication with collection agencies.
Now… your daughter was only calling to verify the debt on her credit report was hers. That’s great because:
1. She did this over the phone.
2. She was trying to validate the debt as hers, not admit to the debt.
There are stark differences, and consumer rights you avail yourself, when disputing or requesting validation of a debt from a collection agency compared to what can be considered a creditors rights when you reconfirm or re-acknowledge a debt. You also have the right to dispute off of your credit reports any incorrect and out of date information .
Should you be concerned about restarting your debts?
There are different camps people fall into when it comes to communicating with debt collectors. Some folks preach how you should never communicate with debt collectors; others say only communicate in writing; and never admit the debt. Because most of my debt and credit career has consisted of helping people understand their options for resolving debt, and often with a collection agency, I have a different take.
I believe people should communicate with debt collectors when there is a goal to achieve. Here are some different goals I know people want to achieve when it comes to collection agencies.
- You want to stay under the radar until the debt passes the SOL to be sued in your state.
- You want to communicate, or not, if it serves the purpose of limiting your risks of being sued.
- You want to resolve a collection agency debt so that your credit reports can be updated to show a paid collection.
- You want phone calls and letter form collectors to stop.
- You want to make sure a debt is yours, or that the amount owed is correct.
- You want to be certain you would be dealing with the right debt collector.
If you do not have a purpose to communicate with a debt collector, you are often better off just biding your time until you can either no longer be sued, or the derogatory item is removed from your credit reports.
It is helpful that some states have passed laws that require debt collectors to clearly disclose that your states limitation on whether they can sue you has passed. And some larger debt collection agencies have settled with regulators to disclose expired lawsuit limits to all consumers they try to collect from, regardless of state of residence. I do hope that national law changes currently being contemplated include, at the least, the disclosure about your debt being time barred from being sued.
Lastly, I should point out that while derogatory credit reporting from unpaid credit cards and medical bills may not be reset from phone calls or letters you send, if you can still be sued for a debt, a judgment will create a new negative entry about the same debt, and that will cause fresh damage, and generally for a whole new 7 year period.
Based on the 2008 dates for when the medical debts were created, they should be deleted off of her credit reports soon. Post the dates you see the collection agencies are reporting for these accounts in the comments below. I may have more feedback based on what you share.
Anyone with questions or concerns about what collection agencies can do to mess with your credit reports, or how collectors view you as a potential lawsuit target, is welcome to post in the comments below for feedback.
I received a letter in the mail for a debit that is almost 7 years old. I contacted them and made arrangements to start making payments later in the month.
Did I just restart the whole ” they can sue me” if I don’t pay time frame over again.
What state do you live in?
Who was the collector or creditor you did this with?
I am trying to clear up some credit issues. I have poor payment history and derogatory marks that are the biggest impact in my credit. I am
I’m the process of making a plan to reduce debt to income ratio and want to pay off my collections. I saw that you posted Portfolio Recovery Ass removes credit reporting when paid, do Calvary Portfolio Services do the same? I recently joined SELF to help with the payment history, is that a good move or not?
Cavalry does delete from your credit reports after you resolve a debt with them.
I do not know much about SELF in practice, but the concept is on point. But you can do just as well for yourself, or better, with rebuilding credit after the negatives are resolved.
I called a credit agency and asked How much I could pay to settle a debt. When they told me they don’t settle I told them the debt isn’t mine I’ve disputed it twice and I need it off of my credit so someone suggest I try to settle it. Will this reset the debt?
Are you asking whether it will reset the SOL to sue you?
What state are you in?
Who is the collection agency you called and spoke to?
Who are they collecting for?
When did you stop paying the original creditor?
Hi Michael,
I have about 7 credit cards in collections from a time when I went through my divorce in 2016. I live in California and they are already out of the SOL. Normally, I would be okay with waiting the 7.5 years until they drop off but I have remarried and my husband and and I would like to purchase a home together. Purchasing in just his name isn’t an option since he immigrated from the UK 3 years ago and his work and credit history are relatively new. I’m curious to know if there is any way to bring up my score quickly or get the collections deleted and what the best way to go about it might be. I don’t have any other loans with the exception of a student loan which has never defaulted. I don’t have any credit cards in my name and am just an authorized user on two of my husbands cards. Is there anything I can do or do I have to wait it out until they fall off? Desperately wanting to own a home.
Who are the creditors, and if you know who is collecting on the account, or who may have bought it, list that as well.
There are instances with debt buyers that you can get deletions these days, and creditors have to update the paid status, so you may be closer to your goals than you think.
The creditors and collectors are:
Capital One
Portfolio Recovery Assoc. — collector for capital one and synchrony bank
Synchrony Bank
Citibank
Midland Funding LLC – collector for Citibank
Would it make sense to negotiate and pay these? And if I do, would the settlement be on my credit profile for 7.5 years from the date I pay?
You will likely have to settle them to get the mortgage.
Both Portfolio Recovery Associates and Midland Funding have a policy of removing the credit reporting when you resolve a debt with them, whether you pay in full or settle for less.
Hi Michael
A lawyer from my divorce is trying to recover debt for a payment from may 2013 which I disputed with them as they acknowledged mistakes made in court documents making these documents invalid for me to use post proceedings. I already paid them 60k for services.
I refused to pay and then have been harassed and bullied me last year by phone. I told the woman this and she hung up. They want 2.5 times the money with interest. I live in another country now so had no idea of legal proceedings vs me until last year. I didn’t know about the 7 year rule. I argued the bill is not valid and the original lawyer even acknowledged this but I’m now being chased for 25k usd and worry if I pay anything they’ll come back. They say terms and conditions allow them to do this. But don’t they have to file information correctly or act in my interests. The debt they see is for falta documents that I need to go back to courts to correct.
I would, unfortunately, talk to another attorney about this, and one with debt collection law experience in the state this occurred.
How can you find out when a collection’s debt was orginally opened? And does the time start over if the debt its bought by another company?
Most will consider a debt in collection when you first miss a payment. This is for the SOL in order to sue, and for credit reporting.
The debt being sold does not legitimately change this date.
In what states is a phone call to the debt collector enough to restart the SOL? I’m in WA state, just checked my credit karma and saw a new mark on my credit from an old medical debt from an ER visit. Messed up and called them, and directly afterward researched and found that the SOL had already expired (BTW the mark that I saw on credit karma was added just days before it became time barred). Gave them no payment nor information, only confirmed my identity and admitted to being the patient. Nonetheless it was a recorded call and I’m nervous that I gave them enough evidence to restart the SOL. Am I clear here in WA state still, since I only made a phone call? A list of states where a phone call is enough to screw yourself might be worth updating into the article.
A friend of mine has a well researched post on that available here: https://www.avoidbk.com/acknowledgement-debt-statute-limitations/
Hi Michael, great read! Thank you. My question is .. a credit card company sent me a letter saying that I own a house and they will take legal action. I do not own a house. Is there any legal action I can take against them for false threats?
Who is the company?
Hey Michael, great article. I just received a notice from PRA, a decrease collector. At this point in my life I’m doing much better with my finances so I was ok, I will settle this debt. I I initially made a payment over the phone then did done more research and immediately canceled the payment. This debts last date was 4/2005.
My question is did I restart the debt clock? I live in ct.
Thanks for your insight,
Just to add the payment was never processed. It was canceled about 1 hr after it was made along with a conversation stating that I need to research said debt.
Talk with an experienced debt collection defense attorney in Connecticut that deals with your courts on this type of concern. I can email you a list if you like?
That would be great.
Thank you
I’m trying to clean up my credit report so I contacted the ones that were on there and made payment for the medical bill without any problems. There was also a $200 amount for a collection agency that when I refinanced a truck they said I still owed this amount. That was Nov 2012. I contacted the collection agency and they were rude. So I sent a letter to see if they owned the debt, I just wanted it off my credit report so I was just going to pay it. I sent them a check for the full amt and said it wasn’t an acknowledgement of the debt, but i would like it to be removed from my credit report. They sent it back and said they couldn’t accept the payment with the restricted terms. Did this start the clock over? Since I paid off all the other bad debt, wondering if I should just wait the two years left to be dropped off credit report. since they apparently don’t want the money. Thanks
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Most places that legitimately collect debt will turn back payments with restricted endorsements or attempts at novation.
Who is it that is reporting this on your credit? What state are you in (SOL reset varies by state, but most allow reset with a written acknowledgment and payment sent)?
Depending on who you are dealing with, I don’t see them suing over $200. But depending on what your goals are, like buying a home in the 2 years, you may want to pay this anyway.
Hi I am trying to clean up my credit report. There are 5 collections accounts on my report. They are from 2010, two from 2011,2014 and 2016. I finally am in a financial situation to negotiate. But I need them off of my report as soon as I pay them otherwise I would just let them fall off. I want to avoid restarting the SOL or the 7.5 year clock. I am in South Carolina. What is the best way for me to proceed? Should I call them to negotiate and have them send me a letter in writing that they will remove the collection from my credit report? Or will calling them restart any clocks? They no longer call me or send letters, so I would have to find their contact information and call them. Thank you for your time and advice! !
Calling the debt collectors when you live in South Carolina will not restart the sol. Sending a written promise to pay, or an actual payment would. Be sure you only send money after you negotiate verbally and get them to send you a written agreement first.
List all 5 accounts you are trying to settle, and include the original creditor, and who is collecting on each account now. There is likely no way you will be able to settle and get the collections removed from your credit reports, but you often do not need to. You can still accomplish major financial goals with paid collections on your credit.
Hi, maybe you can help me with this. Kind of a tricky situation here, Got a letter from a debt collector about a debt that is now time-barred. however, in the letter it states that if i don’t respond in 30 days, that they will consider the debt valid. Is this legit? Will it restart the SOL even though it’s already expired?
I was thinking of sending them a cease and desist letter, but i don’t want to restart the SOL.
What state are you in?
Generally speaking, sending a cease communication letter or validation request would not reset the SOL to sue.
thanks for the response.
california.
but is that a tactic you’ve seen used before by debt collectors? Don’t respond to letter and they will consider the debt valid? seems really scummy
basically i don’t know if i should respond at all. Normally I wouldn’t since the SOL is expired, but the ‘if you don’t respond within 30 days we will consider the debt valid’ has me worried
If you have no intention to pay, and are not overly concerned about it being on your credit reports for 7 and one half years (if it is still on there), there is little that would stop me from sending a cease communication letter (certified mail) if it were me.
That “we will consider the debt valid” just means they assume your lack of dispute or questioning means the debt is real. It is very common language in collection notices. Kind of a compliance CYA thing on the debt collectors side of things.
I live in New York State I have private student loans originally from Sallie Mae . I have been disabled since I graduated and have had all of my federal student loans discharged b/c of my disability. Sallie Maes private loan denied my disability application and my SSD as only income and has since sent it to collections. I have not paid the loans since 2014. I want to contact the collection agency to let them know I am unable to pay due to my disability . I am concerned about the SOL restarting if I contact them back?
What state are you in?
I live in New York State.
Talk to an attorney, but there are only a handful of states you have to worry about restarting the SOL by making a phone call, and New York is not one of them.
If it has been 6 years since the accounts were in default, they cannot sue. And after up to 7 and one half years they will drop from your credit.
What do you hope to accomplish from writing them? Are collectors still trying to reach you on these debts?
Yes, collectors are calling daily about the loans. I just was concerned about speaking with them and explaining my situation and restarting SOL.
Thanks
I have a question about determining SOL.. A private student loan was taken out while living in RI, but she was still technically a resident of MA, which SOL would apply to that loan? Her license and taxes have all been MA all her life but was in RI for school and the loan was sent to an RI address. Also, an agency contacted my daughter and the SOL per MA will expire in a year, they have offered a settlement but no arrangements have been made but she did speak to them on the phone about it and seemed to be “considering” it but again no agreements were made or payments or promise for payments, could that phone contact restart the SOL clock?
Generally speaking, a phone call discussing the debt does not reset the SOL to sue. Ideally you want to speak with an experienced debt collection defense attorney in your state of residence to get help answering that question with certainty.
The state SOL that will apply may not even be RI or MA. If there is a borrowing statute in your state, the SOL that applies could be the lenders incorporation home state.
Generally though, collection attorneys look to sue in the county where you reside.
Question, I have been seeing some stuff written lately about written/oral contracts restarting a debt, and there being a new end date for the SOL. If I wrote a letter to the company stating that due to my financial situation, I can not pay the debt, does this fall under that? The last payments I actually were able to make were in 2013, and Massachusetts has a 6 year SOL. Is my debt still halfway to that mark? Thank you.
Massachusetts SOL is not reset or renewed from verbal acknowledgment, but can be in writing. Why do you want to write to a company to state the obvious if you have no other goal in mind? What is it you are trying to accomplish?
I am worried because the debt collection agency says they need written documentation of your financial situation every three months so they can send the debt to their hardship department for assessment on if you can pay the debt or not. I am also contesting a second debt they are trying to say I owe that I believe I paid off in 2009, and I wrote to them disputing it. They refuse to send me any paperwork on their ownership of the debt unless I write another letter acknowledging I owe them the money, which I refused to do since I told them it’s all been paid off. There was a mix up with the original creditor and their employee had put the wrong bank account information in, so the money wasn’t getting deducted, even though I kept getting bills saying “Thank you for your payment, amount owed $0.00.” Once this mistake was discovered they contacted me and we set up the correct information. This debt also no longer shows up on my credit reports. Basically what wording needs to be on a letter for the debt to be acknowledged?
I would stick to your guns about the paid debt. There is nothing to write about. If they try to pursue collection on it further I would file a complaint with the CFPB about it.
What is the balance on the account that you stopped paying in 2013? Who is the collection agency involved? It is odd to request an update of your financials every three months.
The balance on the account from 2013 is a little over $800.00. I had made a payment online for $10.00 and then the company sent me a letter telling me that was insufficient and payments online were no longer available for me. Then I started receiving stuff from Lustig Glaser and Wilson, about the debts. I questioned the legitimacy of this company when they told me the only ways to pay them are either by money order or through personal check, and everything has to be mailed in. There are no online options available for anything. They have an attorney who shows up at court, who I had to meet with per order of the sheriff, who expressed his dislike of this company as well. The attorney I met with told me based on my financial situation that I can not pay the debt at this time. Then a few months later I got another letter from the company and when I called them back they told me that every three months they need a financial statement from me, and if I don’t send one in, they contact the sheriff again.
I also demanded proof that I even owed these debts, and that’s when they told me that I need to acknowledge the paid off one before they will send me anything, and the only stuff they mailed me for the other debt were copies of monthly statements. This is why I am concerned about the SOL, because the only way they don’t contact the sheriff and the court about it is if I keep sending them updated financial statements, which don’t change, But they have shown me no proof that I even owe them this debt. The original company does not even contact me, and when I do a credit score check on Credit Karma, it does not show this company owning the debt either.
Thanks for the additional detail. This appears to be the collector enforcing a judgment. That changes things. Your asking for proof of a debt on an account that has a judgment will not yield the same results as non judgment debt.
Your inability to pay is something they will continue to want proof of, or they try to enforce the judgment. Be sure to watch this video about avoiding garnishment and bank levy.
Your concern about confirming a debt or resetting the SOL is not the same when there is already a judgment. It doesn’t matter any more.
What information do you have about getting out of a judgement if you can’t pay for it? Especially if you spoke with someone in the office originally about the court order, gave them your financial information, and they said you were all set and did not need to show up in court. Initially I tried to get them to switch the day of the court meeting but they told me having to work and not being able to get out of it was not an acceptable reason to not go. (I work for a somewhat low hourly wage, with no paid vacation or personal time.) Then I spoke with someone at the courthouse who told me to call them back and speak to their office via the solution line because they should have switched the day/time for that reason. So I did and that was when I found out I needed to submit my financial statement and I would be all set, which I did. Then a few months later, I get notification from the sheriff I need to go to the courthouse again. So the sheriff made arrangements for me to go earlier, and be the first person they spoke with, and the debt company’s representative asked me why I didn’t show up the last time, and I explained what happened. That’s when they told me I needed to submit my information every three months to the hardship department, and double check with the clerks office a day before the court proceeding to make sure I had been taken off the list. (Nice of them to let me know this all once it had already happened.) I was told that I don’t make enough money for the wage garnishment, I believe in Massachusetts you need to make $400 – $500 a week in order for them to do that. And for the time being collection action has been placed on hold for a few months. At which point I will then have to submit my financial information again, and possibly have to show up in court again. So long story short, is there a way out of this, other than to continue submitting the information to the hardship department, and hope that eventually my financial situation gets better? Is there a SOL on this type of account?
I would look to raise roughly half the amount owed and then negotiate a settlement with them to pay it off for less.
Check out this page about negotiating judgments.
Hi Micheal,
I have a situation I am dealing with In the state of Kansas and hopefully you are good with Kansas Law. I have a private student loan that was defaulted on 2/5/2010. It got sold to credit world services in 2013. Me and the the original creditor had contact, but i told them I didn’t have the funds to pays. In 2016 I contacted the creditor because I kept getting calls. She wanted to know what Payment I could make and i told her I can only afford $75 a month. However I wanted the agreement in writing and the interest fees and late fees taken off. The creditor said that she would have to speak to the collection agency to see if that is acceptable. I speak to the collection agency and they told me there was no such agreement and they are not committing to anything until they speak to the creditor. I never hear from the creditor nor the collection agency. Then on 9/12/16 I get a summons to court saying that I am being sued. As I am looking at Kansas law, the statue of limitations have past 5 years. I was also looking at quite a few court cases and it seems that everything needs to be in writing in Kansas based off the original promisary note. I did file for bankruptcy in on 11/5/2014 and it discharge on 2/2/2015. Does the statue of limitations apply to me? Have I restarted the statute of limitations clock based on Kansas law? Do you know of any court cases that could help me with this defense? Does the bankruptcy trustee restart the statue of limitations when he pays all the creditors based off law? Please help
Talk over your situation with an experienced debt collection defense attorney in Kansas. I can email you a list of some that I know have the experience you need if you like?
Student loans are written and appear to have a 6 year statute in Kansas. You do not reset the SOL to sue with a verbal acknowledgement, only a written one. You can toll the SOL when you file bankruptcy. But that 3 months still does not get you there if your loan defaulted in 2/2010. Look to see when the action was filed in the court. It can sometimes take a few months to get served.
I’m trying to figure out where it says 6. According to Kansas law 60-511 and 60-520, it says any private loans which included student loans has a statue of 5 years. Can you please show me where it says 6? I know Federal student loans has a statute of 25 but that’s all I see.
Apologies Christopher. I used a cheat sheet I have had for a longtime. It looks like I need to update it. The SOL on written contracts in Kansas is 5 years.
It is even more advisable that you talk over your situation with an experienced Kansas debt collection defense attorney.
Thank you micheal. So it seems like the statue of limitations has passed then. I remember you saying that you have some attorneys that you know in Kansas. Can you please shoot me their information so that I can set up a meeting with them.
I sent you an email with a list of three that I know do collection defense. Suing passed the SOL is a slam dunk defense usually, and you may what to talk to the attorney about whether there is an FDCPA violation worth pursing in that.
Thank you a lot man. You have been a very big help!!! I would recommend your advice to anyone.
Also one last question. I have got mixed reviews on a bankruptcy trustee paying old creditors. I read that bankruptcy trustee’s don’t restart the statue of limitations when they make payments to creditors and then others say that they do. What is the actual policy on that because under Kansas law, it doesn’t seem like a bankruptcy trustee has the power to restart the statute of limitations. It seems that they till the statute until the bankruptcy is completed but that’s it. Is there any law documents I can read about that?
Talk to an experienced bankruptcy attorney in your area. One of the attorneys I sent you contact info for will know the answer too.
I have a novel/sob story and am looking for guidance and clarification. My husband was just given a stack of collection letters by his father for debt in my husband’s name (originally a credit card debt) which he was told by his father was resolved back in 2004. He had paid to his father (in ’04) the amount in full he owed on the card and his father told him that he wrote a check to the cc company and that they were now paid in full, bringing his balance to zero. He was young and believed his father without ever seeing confirmation of a zero balance on the card, and he never heard about the debt again. Until now, of course. In the past year we have purchased both a home and a vehicle, and we were able to do so without ever once coming across said unpaid debt on his credit report (although his experian report was locked both times, so we elected not to pay to unlock it and just worked with the 2 scores he had and my own). We did see that his score had tanked (for what appeared to be no reason) between buying our home in April 15 and getting financing for our vehicle in August 15, but we simply used my much healthier credit to secure the loan instead. I even asked his father in private on multiple occasions if there were any outstanding debts in his name that I needed to know about before we attempted to move forward securing our mortgage, as his family has a history of abusing their son’s credit in order to hide debt from each other. He of course told me no, and no again when I explained that my husband’s score had tanked and we were unsure why. Unsurprisingly, his father had been hiding the notices all these years, which was easy since they were only going to my husband’s childhood home. They had continued to come, and the debt had subsequently (in 2013) been sold to a collections agency. The only information his father gave him was that he had spoken to the collections agency over the phone multiple times (in 2016) and he claimed they would not settle with him. To my knowledge, his father was not an authorized user on nor was he joint owner of the origonal card.
My question is this: will his father’s having spoken to them, possibly admitting the debt and attempting to pay them the current outstanding amount reset the SOL in terms of them being able to sue? Or, because he is not my husband, are we still able to fall into the ‘let it fall off our credit report and not acknowledge the collections agency’ category? Does the SOL restart when the debt was sold to collections in 2013?
His father is not willing to pay and has passed the debt onto my husband, claiming it is not his problem. We did not expect to be handed this large, undeserved (to a point, although my husband’s naive mistake to trust his father is technically his fault) bill. I would like to know my options, as I absolutely do not want to pay or contact them if there is no benefit or danger to us, or if the SOL has passed. We also do not know if these charges are from his father continuing to illegally use the card after he claimed to my husband that it was closed, or if those charges that make up the debt are my husband’s own original charges, as the only statements I have are from the collections agency, not the original bank which the credit card came from. My husband has an unsurprisingly shaky knowledge of financial matters and we are not at all confident in his ability to effectively and appropriately communicate with the collections agency in the best way to protect himself, as finances are usually my department. Any suggestions for us moving forward?
The SOL does not reset when the debt collector buys a debt. Any debt from 2004 should not be on the credit reports. Pull copies of all credit reports and tell me what you see on them after trying to match up the accounts with anything from way back then.
I am concerned that a family member may have created new debt collection issues not related to the really old accounts.
Who is the collection agency involved?
What state is this happening in?
Michael,
I am currently trying to buy a home and the only thing holding me back is a collection from 06/2009 for an apartment I lived in. The collection is for $5208 and is under my name and my roommates name. I do not have any contact with my old roommate to try and get this resolved. I contacted National Credit Systems, who hold the loan, to see about setting up a payment plan to pay the debt off. I updated my address and phone number with the collector and verified my social #. The collector explained they only did 6, 12, and 18 month payment plans making my payment $289 a month for 18 months. I explained that I could only afford $100 a month and inquired if an email could be sent to me confirming this payment amount. The collector explained that they could only send me a letter when the collection was paid in full and that I could send any amount I wanted for payment but would only get a letter once the debt was paid in full. I urged numerous times to have an email sent to me confirming the amount I could pay. The collector continued to tell me no they could not do that. I did not agree to set up a payment plan with them but am curious to know if I just reset the time for my collection to fall off my credit.
You did not reset the time for the collection account to stay on your credit reports.
There are some limited states where you have to be concerned about resetting the SOL to sue you. What state are you in?
I have a judgement against me from Midland Funding and a freeze on my bank account. The credit card was originally from JC Penney, the last payment I made on this account was September 2009. Midland filed this with the courts in 2011. What advice can you give me for the next step. I was served the papers however, my husband did not give it to me because my mother was very sick and I was taking care of her, she later passed away. I live in PA can you explain the Statute of Limitations I did read something that it is 4 years since the last payment was made. Thank you so much!
Read through the above article to understand more about the statute of limitations for your situation (I moved your comment to this page that focuses on the issue).
If your last payments on the JC Penney account were in 2009, and you were sued in Pennsylvania by Midland Funding in 2011, that would be within the SOL for PA. This SOL issue is about how long a creditor or collector has to file a legitimate lawsuit to collect.
The SOL for judgments relates to state law too. Once a judgment is in place, the SOL to collect in PA is 5 years, with the ability to renew the judgment. If Midland Funding did not renew the judgment they would lose the ability to collect on it. But judgment renewal is simple and inexpensive. Renewals are not missed often. You will want to come up with a strategy to resolve the debt. I am a fan of negotiating the best settlement for less than the balance owed, especially in judgment situations.
Michael,
I just realized that I never provided you with the outcome of my immediate dilemma I posted back in May. I contacted the collection agency and we worked out a deal that basically eliminated all the penalties & I pretty much paid the amt I originally owed when I stopped making payments. I was surprised how nice & accommodating the rep was – very understanding & put me on hold twice to “talk to her Supv” as I attempted to negotiate. I paid the agreed amount in one lump sum – about $2300. I don’t know if that was a good or bad choice. They offered multiple payment plans, but I was concerned that one minor mix-up could create huge problems again. The whole process went smoothly, but did I do the right thing by providing my bank info (name, routing #)? I just wanted to pay by debit card or check/money order, but they pushed for bank info? Anyway, other than my fears about providing my bank info, they followed thru with everything they said would happen. They debited the correct $$ from my acct on the date agreed. They sent me confirming paperwork BEFORE processing the debit, & as directed, I called back approx 2 weeks after debit & they sent me a FINAL resolution stating “Paid In Full” to keep for my records. I wasn’t able to find any wiggle room to have this debt removed from my credit report. The collection agency indicated they would report to all 3 credit bureaus that debt was “paid in full”. They said it could take up to two months to appear on my credit report. The transaction took place June 1, so I am going to purchase the ongoing 3 reports from FICO.com shortly. I think I may still have one credit card debt left hanging over my head. I see diff SOL for Delaware depending on diff websites – can u confirm SOL for Delaware? Thanks for your advice & encouragement to pick up the phone & negotiate BEFORE a judgement was rendered against me!
Nicely done Sharon!
It is no longer troublesome to pay a legitimate debt collector with a check by phone. But I completely understand it when people tell me they maintain high sensitivity to doing so. And just as you did, you want documentation of the deal before remitting payment.
SOL for credit cards in Delaware is 3 years.
Hi Michael – I’m back again! You helped me with a previous problem & now I have a follow-up question. I just tried to purchase my credit reports (quarterly) from all 3 Bureaus through MY FICO.com. The order couldn’t be processed & I was told their was a “credit freeze” put on my accounts. I did not make this request, but my research indicates I am the only one that can make this request?? I’ve never had this problem in the past – successfully pulled my reports earlier this year. I’m concerned & very confused – have you heard of this before? WORRIED!!
Sounds like an error of some sort. You will want to call the credit bureau(s) that have the freeze code on and jump through the hoops required to get this mess sorted out.
Thanks for your quick reply. I’ll start calling each credit bureau one at a time. I’m really curious how this happened. I lost my debit card a couple months ago – starting to wonder if my bank had anything to do with “freezing” my accounts. Doesn’t seem likely, and besides, it appears that only “I” would be allowed to put a “freeze” on my accounts. The plot thickens . . .
I was married for 23 years. I’ve only had 3 credits throughout my lifetime. My husband became sick with paranoid schizophrenia & divorced me in 2006. We spent most of 2007 hashing out items between lawyers. My ex-husband never held full time work – we had 3 children & he had multiple part time evening jobs over the years. I was the “breadwinner” working in the corp world. Due to my husbands illness, he filed MANY frivolous suits throughout the divorce process. He lost on all of them, but I still had to pay my lawyer to address. His illness was confirmed thru deposition & presented to the judge. He was asked if he was aware of the extent of his illness & he just mumbled derogatory things about me. As it turned out, we were forced to sell our home as I was less than $1,000 shy of a full buyout amt & he would not budge. It also turned out that I must have been real excited to add him to my credit cards once we were married & didn’t understand the diff between joint & authorized user. He even bought a used car that I thought was in his name only, but later found I was a co-signer. Long story short, I “won” the divorce (he was suing for alimony, custody & child support) & our house was sold on short sale, but all other debts were assigned to me. He was only assigned his car payment — which he failed to pay & hit my credit. After sale of the home & attorney fees, I was not left with much to pay off credit cards or purchase a new home. I ended up in an apartment with two of our three kids. Our oldest son went to live with his grandparents. I kept up payments as long as I could, but I finally couldn’t do it anymore – my apartment rent was quite a bit more than my mortgage. As time went on, his illness worsened. He stopped paying on a 20 yr term life insurance policy (I was unaware) & he became unable to take care of himself. He committed suicide Nov 2012. I was trying to wait off the 7 year statute on our 3 credit cards – but I’m finally being officially sued for the card with the least amt owed (J C Penneys) & it now appears it WAS a joint card with my ex husband. I was served with 20 days to respond. I cannot find anyone willing to help me unless I declare bankruptcy. Apparently my pension & disability I receive each month is too high to qualify for any assistance – and it’s not that much! I applied for S/S with an attorney back in mid 2013 (after my own two failed attempts). I have been beat down with mental & physical issues. I should have a S/S hearing within next couple months, but I was served for J C Penney debt about a week ago (same day I had movers hauling all my furniture to a storage unit). I was unable to have my lease renewed due to a drug addiction problem with one of my kids (tried every program, but he couldn’t beat it). I cannot find ANYONE to counsel me – every place I call is income restricted? Or others are bankruptcy attorneys. In hindsight, I should have declared bankruptcy from the beginning. I visited two bankruptcy attorneys, a couple years apart — I just couldn’t follow thru with it. I have never opened another credit card, but after I paid my car loan off (successfully), my scores began to drop. I literally had no credit to be evaluated. I never missed rent, utilities, cell phone, life insurance, car insurance, etc., but non of these items are apparently reportable to the credit bureaus? I only have about $7000 left, besides my monthly pension & disability income from former employer. I’m located in Delaware. We had a debt of approx $20,000 (ex ran that up at the end) with one credit card, but it appears I reached the 7 year mark & it’s no longer showing. We had another debt of approx $8,000 that still has a couple years on the clock – trying to wait it out. The debt I’m being sued for is the most current (I stopped paying about 1-1/2 years ago & it’s for the least amount – $3,000+ (that figure includes a lot of penalties). I can’t find anyone to help me sort this out or provide guidance. I always paid my bills & my credit score was in 700’s until my husband got sick. I would have used his life insurance to get me out of this mess, but he was very sick & HIPPA laws prevented me from gaining any info about anything. Let me know if you can make any sense of this crazy situation. I have to file some kind of answer VERY soon, or I lose by default. Currently I am suffering from anxiety, depression, etc. I have been thru multiple mental health programs. I have been seeing psychiatrist & mental health counselor on a regular basis for years, but the madness just won’t end. I surely didn’t need this to pop up now – I am not well mentally or physically. Let me know ASAP if you can make heads or tails out of my predicament – thanks
It was nice to speak with you today Sharon. Please update this comment thread with the progress you make with Jeremy.
As I mentioned during our call today, with the SOL for debt collectors to legitimately sue being up in your state, bankruptcy does not make much mathematical sense.
Hi! I am the daughter. There are two different collect agencies handling two different claims that took place on the same day in 2008. I called both collection companies to see if the accounts were open and to iinquire about the delinquency date as well as my options if I found it was my responsibility to pay. I also requested statements from them so I could follow up with the original charger to see if they had been paid. Capital collections were really rude. First guaranteeing they would remove the account from my credit if paid in full. When faced with my question the man because very aggressive refusing to give me NY information since I was ‘looking for a way to get out of paying’ he then said he could no longer guarantee it would be removed even if I paid it then told me he was not going to go out of his way for me. . He also could not give me a delinquency date but it was handed over to them 12/10. Then I spoke to are. The woman was very nice to me. Explained my delinquency date was in 2009 and confirmed it was past the date they could sue and agreed it would probably fall off my credit score after 7 years or so. She also said if I paid 65% of my bill she would have it removed completely from my credit report within 30 days. At this point I don’t think it’s hurting my credit that much since the dates are so old but I’m not sure. Thank you so much for your advise and your time!
Thanks for posting the follow up details Emily. Can you confirm the name of the second debt collection agency? The one with the helpful debt collector?
If you are not being held back from achieving any financial goals by the medical collections on your credit reports, it may be best to let things lay until they drop off your credit. If you do have financing goals, post more about that and lets go from there.
What was the month for the date of service back in 2008?
Michael,
The date was 10/29/08. The name of the Second company is ARS collection Services out of Florida. At this moment in time it is not holding me back. However I am interested in building my credit to get it up enough to be able to purchase a house in the coming year or two. It is unclear to me how much these old medical debts are truly effecting my credit negatively because there is also a Capital one card on my Report which Capital one could not verify as mine when I contacted them ( I have never had a credit card, with anyone). Capital one opened up a dispute to the credit agencies about this and I am waiting to receive mail from them with information about how to proceed. I also do not have much on my Report to really boost my score. I am going to be adding myself onto my boyfriend’s Kohl’s card once we’ve paid it half way off (I have been told using more than half of your allowed amount also reflects poorly on credit. I feel like I have given you a ton of information I am sorry if I gave you more than you needed. I am just trying to get a start on securing my future. Thank you again for your time and knowledge!
Thanks for sharing Emily. That is what this site is for.
If the medical bills are deleted from your credit as early as November of this year, and the bogus Capital One trade line are deleted, you will be in good shape come home loan time after that.
It does sound like you have a thin credit profile. Being added as an authorized user on healthy accounts can help. But you should also look to establish your own credit, and starting with a credit building card. I like the credit matching tools available through credit.com.
Less than 30% credit utilization on the Kohl’s credit card would be better. In fact, under 10 percent is optimal. But that can take some time to get there too.
I had an account with ARS collectors also , it was a 2 year old medical bill . They offered me a $200 dollar discount and they offered me to delete it . So they help me write a PFD letter to them and 3 days later I received the letter . I had several collections and I had to be mean to them but these people were the nicest .