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Posted in Credit Cards
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Question By
DS1985

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1 Person Helped
Question about Settling Credit Card Debt
I have been able to sock away a decent amount of money in order to pay off a credit card bill. The balance currently sits at just about $10,000 and I have about $6,000 to negotiate with. I think that I will be able to come to some sort of agreement but I worry about restarting the clock on the debt during the negotiations. My credit is already in the weeds, and this is a long overdue account. I just don't want this negative information lingering on my credit report any longer than it has to be there. How should I go about negotiating without doing further damage to my credit report. In an ideal world, I would like to negotiate a pay for delete, but I don't see that happening.

Any suggestions?

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Top Contributor
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SOL Has Run

Helpful to 4 out of 5 people

I too am in Florida, and I can tell you that the SOL has alrady run on this collection account. There is no fear of being sued at this point. The SOL you go by is where you reside....in this case, Florida. IF you pay or even call them and ACKNOWLEDGE this debt as being yours, you will restart the "clock". About the only thing you can do is what the 7 year period from the last day you made a payment on this account, for it to be removed from your credit file. This or try challenging their "record keeping skills" by snail mail credit bureau challenging it as NOT your account. Ill try to answer any other qustions you may have, but the SOL has passed on this. 

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Reply by
zevus

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153 People Helped
Helpful to 1 out of 1 people

Could you give source on info about Florida being the state that matters, rather than New York?  Assuming that the default occurred in New York, then the statute of limitations should be based on New York law -- not Florida.   Though, can't say I'm 100% sure on that, maybe more like 90-95%.

Also, calling them and acknowledging some debt, doesn't reset the clock.  It would need to involve some promise to pay it, in addition to acknowledging it.  If some debt collector called me and said I had a $10,000 debt, it wouldn't matter if I said 'sure', or w/e else.  If the next question was whether or not I had plans on paying it, then a 'sure' answer there, would have the potential to cause problems.  OFC, it'd be possible to defend against this, but you'd likely not have enough money for a decent attorney if you're awash in old unpaid debts (and didn't declare bankruptcy).  

Given that the guy seems to have some decent income now, it's not something I'd push by trying to claim the debt isn't mine.  I stopped bothering with that once I stopped getting notices every few months from some new collection agency that had bought my debt.  I was able to get one credit card out of 5 removed, though.  The 'investigation' revealed that I was correct and it wasn't my debt (well, so it was said, anyway, but I actually did have some $9,000 overdue on that card). Mostly I just sent these out so they'd stop bothering me for a month (though some of the seedier ones I got towards the end -- didn't even matter for them) & it'd give me enough time to get a certified letter out telling them to stfu.

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Most Helpful Response

Helpful to 3 out of 3 people

First, read the articles on this site since 'pay for delete' is covered.  You willdo the negotiations via 'snailmail' and you will be keeping copies of all mail from both sides.  The only re-starting the tim clock might come once a payment is made but, if you negotiate a 'pay for delete' that is what will happen when you make the payment.....it will be deleted.

By the way, did you check the statute of limitations for collections that applies to your state?  That is important information to know.

Reply by
DS1985

3 Contributions
1 Person Helped

I am familiar with the pay for delete method.  I intend to attempt to do that first.  I don't anticipate them accepting that offer and I am trying to figure out how to handle this in the event that they do not accept a pay for delete.  The account is not actually in collections with a 3rd party.  The account is still with the original creditor, perhaps in an in house collection file?  I want to settle this account and wipe the slate clean without the threat of being sued, but at the same time, I don't want to restart any clocks on this account for both the time on my CR or to mess with the SOL.  I would like to explore my options without doing anything detrimental.  Also, I did check the SOL.  I currently reside in Florida, which has a SOL of 4 years, but the card was opened in NY (SOL of 6 years).  I am still not sure which would apply here.  Thank you so much for your reply!

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SOL's

What is the SOL in the state of Alabama? It is all medical bills. 

Top Contributor
65 Contributions
153 People Helped

Helpful to 0 out of 1 people

'Long overdue'?  If it's more than 3 years overdue, you're already past the statute of limitations for lawsuits in most states.  Making a payment will just extend the 7 year period that this derogatory information appears on your credit report.  Wouldn't advise throwing money into the wind, here ..

Reply by
DS1985

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1 Person Helped
Helpful to 1 out of 1 people

I reside in Florida, but opened the card in NY and the card issuer is based in South Dakota.  Which would apply here?  Thank you Zevus!

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Reply by
pennstate04

227 Contributions
88 People Helped
Helpful to 2 out of 3 people

this information is not correct. the seasoning period for derogatory information on a credit report is taken from the original deliquency date, not the date of last acitivity. making a payment on a derog account will not reset any seven year seasoning period. 

2 Contributions
1 Person Helped

Know your Collections Tacticts

Helpful to 0 out of 1 people

You have a point, but obviously have no compassion for someone that may have gone through hard times, or was screwed as a co-signer or some uther unwilling circumstance...  Also, what about the outrageous interest and fees that the credit card companies levy on their customers in need....

Finally, take into consideration that the credit card issuers are insured... they do not lose money... And, they will sell your bad debt to collection agencies.... They buy your debt at 10 cents on the dollar.... That is, if you owe $1,000, they buy your debt for $100... then they hound you to death, threaten you, etc. and offer you to pay "only" 80%... That is, pay them $800 for something they only paid $100....  Such a deal!    And, they wilfully and ilegally reset the clock of your debt to the date they purchased it... nnot leaving it when you defaulted...

So, I have no pity for these low-lifes....  Be smart and do your homework...

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Reply by
Nomadre

241 Contributions
85 People Helped

I do beg to differ. The insurance companies do not insure for free.  The more claims they pay the more fees they charge.  Guess who has to pay those fees?  The customers in good standing, generally in the form of higher interest rates. Now getting a rduction in the interest and late fees, I can sort of agree to for those who hit hard times and are trying to do the right thing and pay off their loans.  The argument of the high interest rates, I also do not feel is valid.  The person who agrees to take the money, should know the interest and late fees, and if they are not willing to pay them, they should not enter into the financial agreement.

2 Contributions
1 Person Helped

Know your Collection Agency Tacticts

Helpful to 1 out of 3 people

You have a point, but obviously have no compassion for someone that may have gone through hard times, or was screwed as a co-signer or some uther unwilling circumstance...  Also, what about the outrageous interest and fees that the credit card companies levy on their customers in need....

Finally, take into consideration that the credit card issuers are insured... they do not lose money... And, they will sell your bad debt to collection agencies.... They buy your debt at 10 cents on the dollar.... That is, if you owe $1,000, they buy your debt for $100... then they hound you to death, threaten you, etc. and offer you to pay "only" 80%... That is, pay them $800 for something they only paid $100....  Such a deal!    And, they wilfully and ilegally reset the clock of your debt to the date they purchased it... nnot leaving it when you defaulted...

So, I have no pity for these low-lifes....  Be smart and do your homework...

1 Contribution
1 Person Helped

pay what is owed

Helpful to 1 out of 9 people

what is with you people. you ran up the debt. now pay it.  does your conscience say anything to you.  or is it only about screwing the company that trusted you in the first place.  I am real tired of reading your clever schemes to mastery of your dead-beats status.

Admit you made some mistakes and pay what you owe.

Reply by
LACME1965

1 Contribution
5 People Helped
Helpful to 5 out of 5 people

While I respect your opinion, not everyone who has cc debt is trying to screw the companies or beat the system. Everyone has their own situation. In my case, my debt is the result of a divorce. I ended up with a lot of cc debt due to my ex's reckless spending and the fact that I had to pay my lawyer. My years of EXCELLENT credit has gone down and I am struggling to catch up - not screw the system! I'm sure the address many other legit reasons out there, so please don't judge before you know the whole story.

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