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The 30 Day Rule?

Date: Sun, 07/09/2006 - 10:23

Submitted by anonymous
on Sun, 07/09/2006 - 10:23

Posts: 202330 Credits: [Donate]

Total Replies: 6


Hi. I have a question. I sent out letters to the creditors on my credit report stating that I wished to pay the debt. I haven't heard from any of them. So now what? The debts are pretty old, going on 5 years. I sent everything certified mail, so I have proof that they recieved the letters. Any suggestions on how to get these negative hits off of my credit report. I also asked them not to contact me by phone. Only to use mail or e-mail. MCM still keeps calling. Any advice? Thanks!


The perceived "thirty Day Rule" only applies to consumers to dispute or request validation of a debt. the Collector can take as long as they want to provide the information, but they must cease communication while they are obtaining the requested information.

I am more concerned that you may have restarted the Statute of limitation on these debts. Please let us know what state you are in and what type of accounts your are talking about. it is honorable that you want to pay these debts, however they may be beyond the Statute of limitations, and payment for these debt s could actually damage your credit report more a t this point. While you are trying to make payment arrangements, I would offer a "settlement" of Payment in full for deletion of any negative information which was reported, especially if your are dealing with collection agencies. By acknowledging the debts and stating you wanted to pay them, this could have restarted the SOL, and weakened your negotiating position. In addition if they were out of the SOL, but it has been renewed, Collector can now take measure to force you to pay legally (i.e judgments or even garnishment).


lrhall41

Submitted by LCW on Sun, 07/09/2006 - 10:40

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That stinks! Here I thought I was doing something good. I live in Missouri. What should I do now, wait to hear from them, or should I contact the credit agencies (Experian, TransUnion) and let them know I contacted the credit agencies. Most are collection agencies for credit card debt. The payoffs range from $800.00 not exceeding $1000.00 Thanks for your help, and advice would be great!


lrhall41

Submitted by on Sun, 07/09/2006 - 11:59

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The SOL in Missouri is 5 years for open ended accounts. Credit cards are generally considered open ended accounts. Whether your letter has restarted the SOL under Missouri Law, I unfortunately do not know for sure.

I think I should clarify a few points.

Statute of Limitation for debt repayment should not be confused with the Statutory reporting period outlined in the Fair Credit Reporting Act. under the FCRA , negative information on your credit report remains for 7 years unless removed by the reporting party (XYZ Credit Card reported you as 90 days past due, that remains for 7 years. XYZ Credit Card can however, change or delete information they report to the credit reporting agencies). The seven year reporting period is determined from the date of last activity ( the date you went into default, or the account was charged off. the date cannot legally be changed by a collection agency , though many do this illegally on a regular basis. This is why it is very important to know the dates you paid off or defaulted on accounts.

Once the statute of Limitation expires, you are not legally obligated to pay a debt and they they can still attempt to collect a debt (call, write letters, even threaten legal proceedings) however it falls on the consumer to respond to collection attempts, and if necessary show up in court to raise the issue of the debt being outside the statute of limitations. Normally once this is brought to the attention of the court the case (and debt) will be dismissed.

It is extremely honorable that you want to take responsibility for your debts. "Paid Collection" or "paid Charge Off" are better on your credit reports than "open Collection" or "charge Off" ,but will still have a negative impact on your credit score. In your dealings with your creditors, you should have a goal or a reporting of "paid" or deleting any negative reports all together. To this end you may want to offer a "settlement" of sorts where you agree to pay the account in full, in exchange for the desired reporting or deletion of negative reports with the Credit Reporting Agencies.


lrhall41

Submitted by LCW on Sun, 07/09/2006 - 13:15

( Posts: 1151 | Credits: )


Quote:

The perceived "thirty Day Rule" only applies to consumers to dispute or request validation of a debt. the Collector can take as long as they want to provide the information, but they must cease communication while they are obtaining the requested information.


I wasn't too clear on this. Once a consumer disputes a debt or requests validation within the 30 days as outlined in the fdcpa, the collection agency must cease COLLECTION ACTIVITIES until they are able to provide the requested validation.


lrhall41

Submitted by LCW on Sun, 07/09/2006 - 15:05

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clay, thank you so much for your help! One more question. I asked for the agencies to only contact me via e-mail or via mail. I asked that they do not call my home. One collector is still calling, I even worked out a "settlement" with them. They said I could only pay over the phone. I don't feel comfortable giving out my info to a stranger on the phone, I would rather send a check, or even cashiers check so that I have proof of payment. What are your thoughts on that? Thanks again, you were a great help!


lrhall41

Submitted by on Sun, 07/09/2006 - 16:20

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As for the collector who continued to call even after being told to stop. Answer all calls, and advise them they are violating the fdcpa. Each time they call its a violation for which you can sue them for $1000 per occurance.

I never recommend giving payment by any account you rely on (checking, credit cards, etc) over the phone. You are giving them access to take money at anytime they feel like it. Most above board companies will take what they are authorized and that should be the end of it. Unfortunately there are increasingly instances of collection agencies going back again and again debiting accounts and causing problems.

If the terms of the settlement you negotiated required a credit card by phone I would find a local bank that sells visa gift cards and go by one of those with enough loaded on it to cover your payment. That way if they go back they couldn't get anything.

If you can mail in a payment, then I highly recommend sending a Cashiers/Certified Check or Money order. Send it either by Certified Mail Return Receipt or Priority mail with delivery confirmation. Keep all documentation that you sent the payment and it was received for at least 10 years. this will cost you a little more, and be a little more hassle, but it is worth it in the long run to be able to show proof you honored your commitment if it ever comes into question.


lrhall41

Submitted by LCW on Sun, 07/09/2006 - 17:46

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