Hi Publius
If you find a outstanding debt listed in your credit report, you can ask for debt validation by sending a DV letter by certified mail with return receipt. Asking for debt validation do not reset the 7 year listing period in your credit report. In fact even if the debt is sold by the original creditor to the collection agency and you ask for DV to the CA, it will stay in your report for 7 years and six months from the date of your last missed payment.
Yes, Justin is right. The listing period does not rewind if you ask for debt validation. However, the Statute of Limitation may rewind if you make any payment towards the debt. So before making any payment towards the debt, one should always check whether the SOL of the state has expired or not. If the SOL has expired, then you should not make any payment towards the debt because if you make even a small payment, the SOL rewinds and you need to repay the entire debt, even if the 7 year listing period on the debt has expired.
Quick correction... The SOL is not impacted unless the obsolescence period is. (7 years from the date of the first delinquency)
In the event that a payment is made on an account tat HAS been charged off, unless the STATUS of the account changes to "open", there is no change on the obsolescence period, defined in the FCRA.
If, however, they simply suspend charging privileges, and you make a payment before the account is charged off completely, the obsolescence IS affected. That WOULD in fact, impact the SOL.
Cease and desist letter is generally send to the creditor or the collection agency after you have send a DV letter. If the creditor did not validate the debt, and still harass you for the debt, you need to send a cease and desist letter to the creditor. C and D letter not only stops the creditor from harassing you, but moves your credit file to legal status and there is a chance that the creditor will sue you to the court to bring judgment against you to recover the debt. So you should send this letter only if you are sure that you do not owe the debt.
The cease and desist is already on the account. What I want to do is send a debt validation letter. Can I do this when a cease and desist is presently on the account?
No, you need not send any debt validation letter after sending cease and desist letter. Cease and desist letter will stop them from disturbing you if you do not owe them the debt. However, if they sue you to the court, you can call them up and settle the matter outside the court itself. Now, just wait and see whether they call you up or send you a summon. If they do not respond in anyway, be sure that you do not owe the debt.
Yes, if the creditor or the collection agency do not try to collect the outstanding debt from you before the SOL expiry, he loses his right over the debt. The SOL starts after six months from the date of your last delinquency and its run out date depends on the state you have filed the loan agreement. Now, if your SOL has expired, you need not worry about the debt, but the negative listing will not go out of your credit report before seven years.
Hi Publius
If you find a outstanding debt listed in your credit report, you can ask for debt validation by sending a DV letter by certified mail with return receipt. Asking for debt validation do not reset the 7 year listing period in your credit report. In fact even if the debt is sold by the original creditor to the collection agency and you ask for DV to the CA, it will stay in your report for 7 years and six months from the date of your last missed payment.
Yes, Justin is right. The listing period does not rewind if you ask for debt validation. However, the Statute of Limitation may rewind if you make any payment towards the debt. So before making any payment towards the debt, one should always check whether the SOL of the state has expired or not. If the SOL has expired, then you should not make any payment towards the debt because if you make even a small payment, the SOL rewinds and you need to repay the entire debt, even if the 7 year listing period on the debt has expired.
Quick correction... The SOL is not impacted unless the obsolescence period is. (7 years from the date of the first delinquency)
In the event that a payment is made on an account tat HAS been charged off, unless the STATUS of the account changes to "open", there is no change on the obsolescence period, defined in the FCRA.
If, however, they simply suspend charging privileges, and you make a payment before the account is charged off completely, the obsolescence IS affected. That WOULD in fact, impact the SOL.
there is a "cease and Desist" on this account. Do I still just send in the debt validation letter? will this start the calling to collect again.
Cease and desist letter is generally send to the creditor or the collection agency after you have send a DV letter. If the creditor did not validate the debt, and still harass you for the debt, you need to send a cease and desist letter to the creditor. C and D letter not only stops the creditor from harassing you, but moves your credit file to legal status and there is a chance that the creditor will sue you to the court to bring judgment against you to recover the debt. So you should send this letter only if you are sure that you do not owe the debt.
The cease and desist is already on the account. What I want to do is send a debt validation letter. Can I do this when a cease and desist is presently on the account?
No, you need not send any debt validation letter after sending cease and desist letter. Cease and desist letter will stop them from disturbing you if you do not owe them the debt. However, if they sue you to the court, you can call them up and settle the matter outside the court itself. Now, just wait and see whether they call you up or send you a summon. If they do not respond in anyway, be sure that you do not owe the debt.
But if they do not contact me before the SOL runs out I'm fine, correct?
Yes, if the creditor or the collection agency do not try to collect the outstanding debt from you before the SOL expiry, he loses his right over the debt. The SOL starts after six months from the date of your last delinquency and its run out date depends on the state you have filed the loan agreement. Now, if your SOL has expired, you need not worry about the debt, but the negative listing will not go out of your credit report before seven years.
auqhuuAqyv
tfXAXk Muchos Gracias for your article post. Fantastic.
cMvaKGDelnYWP
vGNlYn I loved your blog.Much thanks again. Fantastic.