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Open credit card debt - over 6 years old

Date: Fri, 08/04/2006 - 00:16

Submitted by anonymous
on Fri, 08/04/2006 - 00:16

Posts: 202330 Credits: [Donate]

Total Replies: 9


Hi All,
I have taken a look at a number of posts and topics on this site and I think this might be the place where I can get some compentent answers.
In 1998-2000 I ran up some credit card debt on two seperate cards (B of A, Citibank). Both accounts were closed in the fall of 2000 and some payments were made until then. Last open balance was:
Bank of America - approx. 4,400.00
Citibank - approx. 1,900.00
At that time I had moved to Austria - where I am still living. Now it has been over 6 years and I went through a lot of personal problems and was unable to continue payments. I am planning to move back to the states sometime in the summer or fall of 2008.
That will make a total of nearly 8 years of no payments or actions on my part.
Recently a letter was sent to my parents (still living in California) from midland credit management with a settlement offer for the Citibank account - offer was for a settlement of 2,400.00.
My questions are plentiful :-)
1. How long will these debts remain outstanding?
2. Is there something like a statute of limitations where the credit card and/or collection companies will give up?
3. Do I have any chance of ever having a decent credit rating (although I have to admit that I don't really deserve one)
4. What should my next steps be?

I have sorted out my life quite a bit in the last years and could pay the 2,400.00 now and perhaps begin payments on the B of A open balance. I have doubts that it will make much of a difference to my credit history if after 7 years my debtors report the debts as met. I realize it was all my fault and that it would be the right thing to do to pay it all back, no matter the amount of time that has passed - however I do not have great amounts of sympathy with credit card companies in general and I believe I could live with myself if it turned out that it would not make much of a difference if I paid back the debt or not (after this long period).
Mainly I am worried about what might be awaiting me if I return to the states in 2008.
Any ideas?
Thanks in advance to anyone who made it through my confusing post and has any advice.


1. The debts can only remain outstanding if the SOL has not expired.
2. They will not give up. They want you to make a payment to them because that will restart the SOL. If that happens they will continue to hound you.
3. By all means YES.
4. Get all 3 of your credit reports. Go through them with a fine tooth comb. Make sure that they are completely accurate.
Quote:

California Statutes of Limitation

Written agreements: 4 years, calculated from the date of breach.

Oral agreements: 2 years.

The statute of limitation is stopped only if the debtor makes a payment on the account after the expiration of the applicable limitations period.


lrhall41

Submitted by dcashwell3 on Fri, 08/04/2006 - 05:40

( Posts: 379 | Credits: )


Hi dcashwell3

Thanks for your reply - don't you sleep? :-)

Just to make sure I understand what you mean.

I should not make the payment because that would "restart" the SOL? Does this mean that as the last activity in this issue from my side over 6 years old is that the SOL has run out and they have no legal hold on me anymore? That seems kind of too easy.... I mean that I am just off the hook on this :?:

ad. 4. how do I get all 3 of my credit reports? I will take a look on this site if I can find out where to get these but maybe you know a quicker way or can point me in the right direction.

Basically my thoughts are running on these lines - I really screwed up on this in the past and I would like to right as much as I can before moving back to the states. On the other hand I am not in a position now to lightly pay six thousand plus dollars if I dont really have to....

Thanks again for the advice.


lrhall41

Submitted by on Fri, 08/04/2006 - 06:25

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I disagree that making a payment would necessarily restart the SOL, although the laws of the different states do differ on this point. The SOL generally begins on the date a contract is breached, and is not affected by subsequent payments. (You should check to make sure they didn't get a default judgment somewhere along the line. You'd be amazed how many people don't even know that they had been sued once. The SOL for a judgment can be 20 years or more.)

What often causes the confusion is credit reporting. Under the Fair Credit Reporting Act, the time inwhich data can be reported is seven years from the date of the last "activity" on the account. So for credit reporting purposes a new payment can restart the clock.

FYI - Collectors can try to contact you even after the SOL passes, but if they threaten a lawsuit they are violating the fdcpa.

Finally, there is no point to paying the debt so late in the game. You get no benefit, since you can't be sued. And it can hurt your - hopefully rebuilding - credit score. I'd only pay them anything if you felt some sort of moral obligation.


lrhall41

Submitted by on Fri, 08/04/2006 - 12:13

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Hi,
well I have tried to get a little more information since the last time and still have a few hundred un-answered questions :-)
to clarify what i wrote before:
I have been living in Austria for the last 6+ years. It will be another 2 years or so before I move back to the states. The last activity on my part in these matters must be from early 2001 or so.
Questions:
1. what should be my first actions? Credit report?
2. How can I find out (im still in austria) if I have been sued in this matter? if there has been a default judgement?
3. what does "default judgement" mean exactly - what are the consequences?

the previous post confused me because in one sentence she is talking about default judgements and being sued and then at the end she states that it would make no sense to pay the debt at this late date...???

If a default judgement has been made against me then I have been ordered by a court of law (sometime in the past, in absentia) to pay this debt. does this mean i am a "fugitive" in any way? is there possible a warrant out on me somewhere in California? - damn scary thoughts.

last question for now. I am not able to reach the annual credit report from over here - tried at work and at home with different browsers and cookies and all that stuff. i think for some reason it checks to see if it is a local "IP" address. what dangers migtht i be exposing myself too by asking for my credit report in writing? then my address in Austria would be known... would the credit card companies be able to find out about this? as far as they no I am dead or fell off the planet and until i figure out what I am going to do I would like to keep it that way...

hope someone can take the time to fight through my confusing post...
thanks.


lrhall41

Submitted by on Fri, 08/18/2006 - 10:33

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ex-patriot

When a legal case is filed in the court by the credit company, the clerk serves summons to the defaulter at his home or work place. The defaulter must go to court to show his/her presence. If you don't appear in the court, the judge assumes it to be the contempt of the court and issues a default judgment giving credit company the chance to win the case by default.

If a judgment has been filed against you since you were out of the states, check your credit report online and see if this has been recorded there. You should also check with the local county website if the judgment is in their records. If yes, you will have to make the payments through court orders.


lrhall41

Submitted by IncredibleHelp on Fri, 08/18/2006 - 16:16

( Posts: 492 | Credits: )