credit card question

tupacboy · 01-28-2008, 03:54 PM

Hello,

I had a credit card in college that my dumbass forgot about and it went into collection.

Its my fault, about 4k. Now here's my question. Statue of limitation on Credit cards in CA is only 4 years. Its been about 6.

Should I call and try to settle it? Or someone told me I could write to the 3 bureau's and get it removed...

what do you guys think I should do?

Layla · 01-28-2008, 04:28 PM

If it's been six years, it is only one more year before it falls off of your report. If you make contact with the collection agency, your 7 years starts over and it will remain on your report. My advice: don't touch it. Do nothing. It falls off in 1 year and they can no longer collect (unless you contact them) because the statute of limitations on collecting it has passed.

YellowCoffee · 01-28-2008, 05:39 PM

Just make sure that you have not paid any payments on it since the past 6 years (otherwise, this could compromise the statute of limitations). Also, make sure they haven't already tried to take legal action against you.

If not, then you fall under the California statute of limitations for open-ended accounts of 4 years and you have an absolute legal defense against this (meaning you do not have to pay). This is all assuming that this delinquency has already been on your credit report for the past 6 years.

zippyjuan · 01-29-2008, 10:08 AM

I am amazed that you could have a $4000 credit card debt which you have not paid and the bank has not tried to collect on. I found a couple of articles:
http://articles.moneycentral.msn.com...bt.aspx?page=2

Quote:

Debts can still exist even if the creditor can't sue. Some people erroneously believe that debts are erased after the statute of limitations has run out. Although the creditor's ability to sue you has been curtailed, it can still try other methods to persuade you to pay, including calls and letters. The debt can also be sold to another collector that can renew efforts to get you to pay. A legitimate debt is truly erased only when it's paid or erased in bankruptcy court.

It looks like California has a four year limitation- starting from when the account was 90 days overdue- or the last date of activity on the account. If your debt was in one state and you live in another, your bank can decide to use whichever one gives them the longest time.
http://www.bcsalliance.com/y_debt_sol.html

Quote:

If a debt collector contacts you regarding an old debt, do not admit that you owe the debt and do not agree to make any payments. Simply tell them that the "statute of limitations has run on this debt and do not contact me again". If they continue contacting you, send them a certified letter, return receipt requested, telling them not to contact you about the debt again. Remember -- DO NOT ADMIT THAT YOU OWE THE DEBT, DO NOT AGREE TO PAY THE DEBT, AND DO NOT AGREE TO SEND ANY MONEY TO THEM. If you do, then the statute of limitations might start running all over again, giving them the legal right to sue you.

It can still be on your credit report for seven years.
http://www.credit.com/slp/chapter9/S...imitations.jsp

Quote:

The State of Limitations only covers lawsuits and does not cover other types of collection activities -- Creditors or collection agencies may still continue to try to collect on your debt but are subject to the provisions of the Fair Debt Collection Practices Act. In reality most creditors will put less effort into collecting debts that are out of statute. But creditors may still report your delinquency to the credit reporting agencies for the time limits specified in the Fair Credit Reporting Act, or seven years for the credit card debt.

Prngr44 · 01-29-2008, 11:02 AM

I'm just curious what it's done to your credit over the past 6 years? Have you suffered because of it?

tupacboy · 01-29-2008, 11:20 AM

thanks for the advice... maybe i'll just wait another year...

i don't think it really affected me much... i purchased my new car in april from acura. A tl-type S. I qualified for 1.9% financing, and it was actually my first car I financed. Car was 32500 before Tax and Licensce. I put 7k + trade in = about 10k down.

Cubsfan · 01-29-2008, 11:32 AM

Well, in one sense if you can afford a $32,500 car, you probably should pay back $4k you rightfully owe.

If it was me I'd probably wait the year though.

ShawnLee · 01-29-2008, 09:56 PM

Quote:

Originally Posted by Cubsfan

Well, in one sense if you can afford a $32,500 car, you probably should pay back $4k you rightfully owe.

If it was me I'd probably wait the year though.

My exact thoughts. What's right vs. what you can get away with.

renovation · 01-29-2008, 10:58 PM

Quote:

I had a 4k credit card in college that my dumbass forgot

i want to know how that just slips one's mind ?

InfiniteNothing · 01-29-2008, 11:13 PM

Quote:

Originally Posted by ShawnLee

My exact thoughts. What's right vs. what you can get away with.

The finance companies would not extend him the same courtesy. If this were a personal loan or something I'd agree.

01-28-2008, 03:54 PM	#1
tupacboy Rear Admiral Lower Half Join Date: May 2000 Location: border of oc and la Posts: 2,382	credit card question Hello, I had a credit card in college that my dumbass forgot about and it went into collection. Its my fault, about 4k. Now here's my question. Statue of limitation on Credit cards in CA is only 4 years. Its been about 6. Should I call and try to settle it? Or someone told me I could write to the 3 bureau's and get it removed... what do you guys think I should do?

01-28-2008, 04:28 PM	#2
Layla Lieutenant Junior Grade Join Date: Jul 2007 Location: Chula Vista Posts: 97	If it's been six years, it is only one more year before it falls off of your report. If you make contact with the collection agency, your 7 years starts over and it will remain on your report. My advice: don't touch it. Do nothing. It falls off in 1 year and they can no longer collect (unless you contact them) because the statute of limitations on collecting it has passed. __________________ *2008 3-Day Walker!* *DC #45*

01-29-2008, 11:02 AM	#5
Prngr44 Rear Admiral Lower Half Join Date: Feb 2003 Location: St. Louis Posts: 2,620	I'm just curious what it's done to your credit over the past 6 years? Have you suffered because of it? __________________ http://otthouse.blogspot.com

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01-28-2008, 05:39 PM	#3
YellowCoffee Lieutenant Join Date: Jul 2006 Posts: 411	Just make sure that you have not paid any payments on it since the past 6 years (otherwise, this could compromise the statute of limitations). Also, make sure they haven't already tried to take legal action against you. If not, then you fall under the California statute of limitations for open-ended accounts of 4 years and you have an absolute legal defense against this (meaning you do not have to pay). This is all assuming that this delinquency has already been on your credit report for the past 6 years.

01-29-2008, 11:20 AM	#6
tupacboy Rear Admiral Lower Half Join Date: May 2000 Location: border of oc and la Posts: 2,382	thanks for the advice... maybe i'll just wait another year... i don't think it really affected me much... i purchased my new car in april from acura. A tl-type S. I qualified for 1.9% financing, and it was actually my first car I financed. Car was 32500 before Tax and Licensce. I put 7k + trade in = about 10k down.

01-29-2008, 11:32 AM	#7
Cubsfan Rear Admiral Lower Half Join Date: Jul 2001 Location: Colorado Posts: 2,743	Well, in one sense if you can afford a $32,500 car, you probably should pay back $4k you rightfully owe. If it was me I'd probably wait the year though.

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