did we "reset" the statute of limitations?

Submitted by Anonymous (not verified) on Thu, 08/13/2009 - 07:21
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Credit repair

Please help. My husband and I did debt consolidation in December 2004. We managed to settle all but two accounts. One account was charged off and we never heard from them again. It is scheduled to "fall off" our credit in 2011.
The other one was sold, and then sold again to different collection agencies. We finally broke down and tried to settle with the third company. We agreed to and paid $200 per month for the past 12 months.(total of $2400.00) They were supposed to stop charging any more interest or other charges as long as the payments were made as agreed - which we did. The bad debt amount was originally $16,000.00 wth the original creditor. A year ago they said the amount was $21000.00. Now they say it's $19900.00. We asked them why there was almost a $400 difference between the amount, and they replied that it was interest & fees.
My question is this : Did we "reset the statute of limitations" clock on this account by making a payment, and if so, did the collections agency void that by not honoring our agreement? We live in Arizona.

carol

Hi buggyhawk

Did we "reset the statute of limitations" clock on this account by making a payment,

So it seems. The SOL gets reset automatically from the day you make the last payment on any account.

buggy if you are in doubt about the value they are giving you for what you owe them, then maybe you could still seek validation. By making payments on the account you have assumed responsibility of the debt, but nevertheless you could ask for validation.

Thu, 08/13/2009 - 09:19 Permalink
buggyhawk (not verified)

Thanks for the info....

I did some checking and the sol had passed prior to us taking any action on the account. Do you think it still resets the sol "clock" if you try to settle up at that point? We are trying to do the right thing, but our research has shown that the company that we were trying to work with has a long history of taking payments and not settling anything. We are trying to get a validation, or a statement that shows all activities on this "account".

Also, we pulled our credit, and it this shows up twice....The original account, and then again for a second company. Apparently they put it on our credit after they bought our debt. Can they do this? How can I get one of them removed?

Thu, 08/13/2009 - 15:39 Permalink