Does SOL reset when debt is sold off to CA?

Submitted by IhateChase on Tue, 02/03/2009 - 23:43
Forums
Credit repair

I have been reading the site, but can't seem to find an answer regarding this question. I have a $356 charge off by Chase dated 12/2003. My last activity on the account was a payment made in 05/2003.

In 12/2008, a collection agency called Genesis Financial reported this collection account to Experian. Now that it's past my state's SOL (Calif 4 years), can they still make a claim on this amount? Will Experian consider removal of the Collections entry based on SOL? (I understand that the charge off from OC Chase will remain in my report for 7 years.)

Thanks!

fireyone

Hi Chase hater, No if you have not made any payments on the dewbt since may of 2003 then you are prtected bye the SOL. They can however continue to try and collect this debt for as long as they want. They just can not sue you in court and legally win...some will try but as long as you have proof showing the last payment (credit report comes in handy here) then you will be fine. This mark will however remain on your credit report until 2010. They will not remove it before then.
Now you can send the debt collector a debt validation letter (certified mail) and if they do not validate the debt with in 30 days you can dispute it and get it removed but the original creditors mark will stay.

Wed, 02/04/2009 - 01:54 Permalink
scott

Hi Chase
Since you have made the last payment in May 03, the SOL on the debt has expired and no are no longer liable to pay the debt. Even if the creditor sue you to the court they cannot bring judgment against you to recover it. However, the creditor may convince you to make a small payment towards the debt which you should not. This is because if you make any payment, the SOL clock will restart and the creditor will again get the advantage to sue you to recover the entire debt.
Since the SOL has already expired, there is no need to ask for debt validation.

Wed, 02/04/2009 - 10:48 Permalink
Mary

Since after charging off the account the OC has sold off the debt to the CA, the CA can report the debt to the collection agency and you cannot get it removed if the CA has bought the debt. To verify it, you can send a debt validation letter by certified mail to the CA and if the CA cannot send you the proof that they have purchased the debt, you can send a dispute letter to the bureaus and the bureaus will get the name of the CA removed from your report.

Wed, 02/04/2009 - 10:53 Permalink
sdchargers_63

MARY:: If you ask the CA to verify it and they CAN'T verify it, how do you prove to the CB's that you INDEED did ask the CA for validation and they din't send you one? I'm assuming that the CB's would need some kind of proof other than just word of mouth.

Fri, 02/06/2009 - 03:32 Permalink
Justin

This is the main reason why one should send a debt validation letter by certified mail with return receipt. You can send the return receipt along with the dispute letter to the bureaus. On getting your dispute letter, the bureaus will first verify it with your creditor and get it removed from your report. If they do not remove it, you can file a complaint with the FTC.

Fri, 02/06/2009 - 07:16 Permalink
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