04/27/2008What happens if you send a scavenger debt collector money?
- I know it's a huge mistake, but my boyfriend... in a not-so-smart move, sent a scavenger debt person $200 because he got scared when he read the word "sue" in the stupid letter. Instead of consulting anyone about it, he sent the money and they cashed the check. He's talking to a lawyer next week, but what happens if you send them money? Does it reactivate anything? Do these firms have the ability to report to credit bureaus? This was regarding a debt he owed back in 1997 in California. We live in Iowa now.
Remember this is not a collections agency. It is a law firm that buys debt from CAs.
- Best Answer:The Statutes for Iowa are as follows:
Open account: 5 years from last charge, payment, or admission of debt in writing.
So in effect, he has restarted the time clock on this debt. He could have just thrown it away as they had no legal recourse and could not have sued him.
Was this payment a settlement payment or just a single payment to hold them off. No matter what, they can now take civil action in court to collect the full amount including legal fees.
HOWEVER, this will not reset the SOL for reporting on his credit report as per:
Running of Reporting Period - Section 605 [15 U.S.C. § 1681c]
As of December 29, 1997 the reporting period runs 7 ½ years (7 years plus 180 days) from the date (month and year) of the last delinquency (known as "last missed payment:).
So, regardless of how long a creditor waits to charge off, sell or transfer a debt, they must report the true and correct "delinquent or last missed payment" date (month and year) that preceded the creditor's action.
Use the following link to see if the so called Law Firm is truly legit, many debt collectors use bogus letterheads or pay a lawyer for the use of his letterhead. If it is a bogus letter, then you have rights under the FDCPA regarding misleading collection attempts.
http://www.budhibbs.com/drowning_in_debt...
At least he got smart enough to consult a lawyer on this one.
Hope this answers your question.
- Answer:What your boyfriend did was reopen the statue of limitations on this debt. IN CA the statue of limitations is 4 years, and this debt has now even fallen off his credit report. At this point, not sure what you can do. They can very well sue him at this point, AND WIN, or your bf might want to make an arrangement with him. Rule of thumb, when the statue of limitations is up on a debt, never... I MEAN NEVER talk to or make any arrangements to pay or give them one single cent! Good luck and maybe there is hope.
- Answer:Yes check with a lawyer, this new payment will probably go on his report, but if he checks with a lawyer, he will be able to give you a better knowledge of what he can and cannot do, or should I say, what he should or should not do.
- Answer:It is a Common situation many people have met,therefor,calm down,and check the resource i found useful.http://debt-relief.expertips4u.info/unse...
- Answer:don't send them anymore more, send them a letter telling them to NOT CALL you anymore and to end all contact with you,, they can threaten till the cows come home but they can't do anything to you..
- Answer:He basically agreed that he owed the debt and now that they have activity on the account they can not only report to the credit bureaus , but the time limit for reporting bad credit has restarted. he should have the debt "validated" by asking the company to provide proof that they purchased the debt and that he now owes them. If they cannot prove that they purchased the debt and that the debt is valid, they cannot report anything on his credit. Validation of a debt means they have to provide all paperwork of the debt and that he owes, since this was in '97 chances of them having all the necessary paperwork is slim. The "validation" process can be initiated at the credit bureaus if it is on his credit or by a written request sent to the company. However, they now have his banking info and may pursue the debt even harder by trying to get a judgment against him.
- Answer:Basically the debt can remain on your credit report for 7 years (some longer) from the date it is first reported.
The payment may have reactivated the debt; what happens a lot is that companies try to "re-age" accounts. I believe that if you have anything that shows this was first reported delinquent in 1997, and that this was the first date of delinquency, that it may be removed; but I am not sure how the payment affects it. Rule of thumb is - if it is over 7 years for the debt (or 10 for some) - it can no longer be reported on your credit report and the statute of limitations expired on it.