Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Cards
Profile Image

Question By
OldDebtsStink

0 Contributions
0 People Helped
Can a debt consolidation service with POA reset my old debts?
I was using a debt consolidation service to settle all my overdue credit cards.(4 years ago) They required my spouse and I to sign a power of attorney form to get certain creditors to cooperate with their mediation process. One of my last payments made to the debt consolidation service overdrew my bank account. I tried to cancel the payment but I was too late. A couple weeks later I decided I could no longer afford to continue paying them for their services. So, the creditor that was prepared to settle only received a partial payment. Does this type of activity constitute a payment on a debt made by me personally which thereby resets the date pertaining to the statute of limitations? Or - are the debt collectors who have recently filed a suit against me at my local magistrates office 'mistaken' about the actual date of the last payment made by me 'personally'?

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.