Posted on: 26th Apr, 2007 04:00 pm
8 yrs ago I had taken a loan of $6000, I was quite young that time and didn't go through all the details of the loan, on it they had a interest rate of 22%! I continued making payments on it for about a yr. of $300 a month but the loan amount kept growing bigger on me. I was really confused and stopped making payments on it. About 3 yrs. ago it appeared on my CR, I contacted the CA that was listed and attempted to go for a settlement and made an offer to pay $4300 which was not accepted, but they asked me to start making the payments to them which I did not do. Couple of weeks ago I received a notice that the debt got sold to another CA and the amount balance was now almost $11000. I need to pay this amount? and how long it is going to stay on my report as its been already 8 yrs. I had taken the debt?
Hi Marilyn,
From the date of your first default the debt is supposed to drop off your credit report in 7 1/2 yrs. time.
But as you tried to go for a settlement 3 years ago for the balance debt, the Statute of Limitations was renewed, which is the reason the debt is still appearing even after so many years have passed from the date of your first default.
Miller
From the date of your first default the debt is supposed to drop off your credit report in 7 1/2 yrs. time.
But as you tried to go for a settlement 3 years ago for the balance debt, the Statute of Limitations was renewed, which is the reason the debt is still appearing even after so many years have passed from the date of your first default.
Miller
"and how long it is going to stay on my report as its been already 8 yrs. I had taken the debt?
"
Marilyn, you can dispute the debt as being out of the SOL period and if they cannot prove that Statute of Limitations got renewed then it will have to be removed from your report. SOL can only get renewed if you send a settlement offer in writing, you make a payment, if there is a voice recording of your offer for a settlement or you state that it is your debt. But as you did not make the payment and if they cannot provide sufficient proof that you did offer them to settle the debt then it has crossed the SOL period by now.
"
Marilyn, you can dispute the debt as being out of the SOL period and if they cannot prove that Statute of Limitations got renewed then it will have to be removed from your report. SOL can only get renewed if you send a settlement offer in writing, you make a payment, if there is a voice recording of your offer for a settlement or you state that it is your debt. But as you did not make the payment and if they cannot provide sufficient proof that you did offer them to settle the debt then it has crossed the SOL period by now.
"Couple of weeks ago I received a notice that the debt got sold to another CA and the amount balance was now almost $11000."
Ask the CA to validate the debt i.e. you actually owe the amount to them. If they are not able to validate it then you are not liable to make any payment to them.
Ask the CA to validate the debt i.e. you actually owe the amount to them. If they are not able to validate it then you are not liable to make any payment to them.