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    paying of a old debt

    Hello everyone,

    Hope all is well. Its been a long time since i've logged in.

    my question.

    My mother in law is trying to get a new auto loan. We ran her credit and 1 past due loan of $303 that was reported to collection.

    The rep that I was talking to stated that her last payment was on 2/2011. She stated thats she couldn't take payment becuase it was past the statue of limitation and if we wanted to make a VOLUNTARY payment that we had to MAIL a check or money order. NO PHONE PAYMENT. Then the credit bureau will update it as "PAID"

    In this situation, what should or next step be?

    me personally, I would just pay it off so when she does get an autoloan, it won't haunt her. But I don't know all the rules regarding statue of limitaion.

    The lady Rep said she legally can't send any info or paid reciept because it's past the SOL.

    Hope i all this made sense.

    #2
    If your mother-in-law wants to pay off her old debt, she can do so. Acknowledging the debt on either a recorded call or in written communications resets the statute of limitations (as far as I know). I could be wrong, but I am pretty sure that is how it works.

    As far as the debt collector only wanting check or money order - that is very strange. You would think that they would accept payment regardless of the form. At any rate, here is what you should do...

    Contact the collector and get WRITTEN communication from them stating that $X will be considered "payment-in-full." Once you have received that written communication, then send a MONEY ORDER for the payment-in-full amount to the address that they provide for payment. DO NOT send a check!

    Once they receive the payment, they can and should update your bureau report to state that the account was paid.

    Please note that they will not (and cannot) remove any remark stating that the account went to collections. That is factual and accurate, so it will stay on the credit report. However, the update stating that the account is paid in full will back her credit history look better.
    Check out my new website at www.payczech.com !

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      #3
      Originally posted by dczech09 View Post
      If your mother-in-law wants to pay off her old debt, she can do so. Acknowledging the debt on either a recorded call or in written communications resets the statute of limitations (as far as I know). I could be wrong, but I am pretty sure that is how it works.

      As far as the debt collector only wanting check or money order - that is very strange. You would think that they would accept payment regardless of the form. At any rate, here is what you should do...

      Contact the collector and get WRITTEN communication from them stating that $X will be considered "payment-in-full." Once you have received that written communication, then send a MONEY ORDER for the payment-in-full amount to the address that they provide for payment. DO NOT send a check!

      Once they receive the payment, they can and should update your bureau report to state that the account was paid.

      Please note that they will not (and cannot) remove any remark stating that the account went to collections. That is factual and accurate, so it will stay on the credit report. However, the update stating that the account is paid in full will back her credit history look better.


      Thank you for replying.

      The telephone number that i got from her credit report lead me to citibank. So i'm not sure if the past due account is even with a collection agency anymore.
      They said that it was past the SOL so she legally couldn't accept payment but only if we mailed it in and that would be consider a voluntary payment.(not sure if thats a bank policy)

      The lady rep that i spoke to also stated that she can't email or mail me a letter regarding any information regarding the account due to it being past SOL (even after receiving payment). I thought that was weird. But she stands by what she said.

      Her exact words " If you decide to make a voluntary payment, please send it this address attn citibank and about 1-2 weeks, the credit bureau will update as "paid" but it will still remain on the report, but can not send a email confirmation regarding payment."
      Last edited by thomasdan; 02-03-2016, 12:27 PM.

      Comment


        #4
        That is very strange. You would think that the debt collector/creditor would gladly accept re-opening the statute of limitations. If that happened, then none of this would be an issue.

        Bottom line is this...

        They need to send written communication as to how much is owed, and how much will be considered "payment-in-full." If they do not do this, then no deal. If they do provide that information, then send them the money order for the payment-in-full amount. No check!

        It sounds like this collector is being extra precautious and may not exactly know the ins and outs of debt collection and how it relates to the statute of limitations. What state is your mother-in-law in?

        Once the debt has reached 7 years from the date of last activity, it SHOULD fall off of your mother-in-law's credit history. So she could always wait until then if the collector won't take the payment.

        I just find this whole situation to be rather strange. You would think that they would gladly accept payment on this since you're offering.
        Check out my new website at www.payczech.com !

        Comment


          #5
          I called back again today and spoke with another rep from citibank.

          She stated the same thing about SOL. That they can't send any letters because its past the SOL. She stated that the call was recorded, So I went ahead and got the employee name and employee ID # just incase. She did say all we owe was $303.66 and to mail it. Once they recieve it, they'll update the credit bureau.

          My mom lives in CA. I believe it will fall of her report in 2018. But she is needing a car now. Thats the reason why we want to clear all this up now before we meet with a dealership.

          Comment


            #6
            Originally posted by thomasdan View Post
            I believe it will fall of her report in 2018. But she is needing a car now. Thats the reason why we want to clear all this up now before we meet with a dealership.
            This is actually a moot point. Regardless if the debt is paid off, the remark will remain on her credit report. The only difference is that if the debt is paid off, it will be updated to say that it was paid. This will make her credit look a little better, but there will still be the black mark.

            Never do anything with credit just because you want to take out a new loan.

            The reason why they are not sending communication is because that could be construed as them pursuing an expired debt, which would be illegal. And California is (supposedly) extra harsh when it comes to this.

            Since this is Citibank, which is a pretty reputable firm, as opposed to some boiler-room debt collector, I would say that it would be okay to send the payment. Send a money order for the $303.66 and call it done. They will take the money, update the account, and update your mother-in-law's credit report.

            After that, she can try applying for a car loan again. However, do not be surprised is resistance is met. Her credit report will still have a black market due to the account going to collections. However, with it being paid off, it may help.
            Check out my new website at www.payczech.com !

            Comment


              #7
              Has your mother spoken to them? I'm surprised they spoke with you because the debt isn't yours! Have your mother send a letter to the collection agency asking about the validity of the debt. This won't reset the SOL because she is not acknowledging the debt and the CA will respond to her in writing; doubtless they will ask for a payment!
              Phil Danley
              100% Debt Free since 2014
              http://www.ConsumerDebtCoach.com

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                #8
                I think you can clear her debts but a written statement is must to keep a record of the paid loan.

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