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View Full Version : Old CC debt, believed to be past SOL, interested in settling.


CRT1998
Mar 17, 2009, 05:33 PM
I married my wife a few years back, and as the time goes by, I discover that instead of a dowery, I'm getting debt. I've already settled a few of her credit card debts, but those were a while back, before I did any research, and as such totally freaked out and probably got milked for more than I should have been. It looks like she still has another two or three credit cards haunting her from her past, and I'm hoping to get them gone.

Here's the SitRep: My wife is currently unemployed, has been since before our marriage and probably will be for a while longer still. Her mom handled her finances (poorly, it seems) before she became my wife, and essentially stopped making payments on her credit cards once her financial aid ran out, presumably hoping they'd just vanish into thin air and never resurface. Now they've tracked down my wife and we're getting "The Call" from collectors. The main one I see pop up on my caller ID is Asset Acceptance, and I see from the credit report that they purchased the debt, which I can only assume means they paid a pittance for it.

I am not a home owner (apartment renter), and I do not make a significant amount of money. On a monthly basis, my entire take-home-pay goes to rent, utilities, student loans and basic living expenses. As such, I really have nothing to use to pay the entire "balance", which I know is overly inflated from late fees, interest, etc... As an example typical of the cards in question, one had a credit limit of $300. The "Date Closed" for this entry in the credit report was June of '05. As of the credit report date (Jan '09), the balance is just past $1300.

So...

My wife obviously never charged anything beyond that $300 limit.
With the date the account was closed being 06/05, I can guarantee no payments were made after, so even being conservative I can say (from my understanding) that the Statute of Limitations expired no later than 06/08 (I live in Arizona, where the SoL on open accounts is 3 years. This is also where my wife has always lived and where the account was first created).


Let me state clearly that I do not want to simply say "tough luck, you missed your chance", trying to take advantage of the SoL and not pay a thing. I am well aware that at some point in the past, my wife did in fact receive goods or services for which these credit cards were used and as a result I am inclined to repay her debt within reason. My problem is that all the interest and late charges have blown the debt way out of proportion and I am unsure if these debt collection companies are inclined to be reasonable in return.

As tax time has rolled around, I find myself with a very small chunk of change, roughly on par with the original credit limit ($300) for the card used in the example. I am interested in trying to reach a settlement with the company, but I am truly afraid that if I so much as look in their direction the SoL will start all over again, they'll try to bleed me dry for money I simply do not have, and that I will be, simply and crudely put, screwed.

If anyone has any serious and (ideally) professional advice on how to approach this, it would be sincerely appreciated. I'm getting tired of having my stomach turn into knots every time the home phone rings, and I have to look to see if it's the collection company again, so I am considering sending a letter requesting them to stop calling. I would ideally like to propose a settlement in that same letter, but that is where my concerns come into play. Thank you in advance for any help.

ScottGem
Mar 17, 2009, 05:45 PM
The SOL expiring, if it did, just prevents the creditor from suing over the debt. It doesn't mean they can't still try to collect.

I would send them a letter stating that they are not to contact accept by mail. Tell them, if they can prove the validity of the debt and their right to collect, you MAY be interested in settling for the original maximum amount.

CRT1998
Mar 17, 2009, 07:08 PM
The SOL expiring, if it did, just prevents the creditor from suing over the debt. It doesn't mean they can't still try to collect.

I would send them a letter stating that they are not to contact accept by mail. Tell them, if they can prove the validity of the debt and their right to collect, you MAY be interested in settling for the original maximum amount.

I appreciate the response. That's pretty much where I stand, at the moment, actually. I'm fully aware that regardless of when the SoL expired, they can continue to ask for repayment of the debt until I'm six feet under.

As far as the letter goes, it is my intention to send one essentially along the lines of what you mentioned. My main concern is avoiding "resetting" the SoL, so that they can't suddenly decide that they don't want to settle for a partial payment, and that they want to sue my wife for the full current amount including fees and interest over the last bajillion years.

ScottGem
Mar 17, 2009, 07:17 PM
As long as you don't admit to the validity of the debt, you should be OK

CRT1998
Mar 18, 2009, 07:39 PM
as long as you don't admit to the validity of the debt, you should be OK

And there you have my concern... how to send a letter attempting to settle without validating the debt and having them decide to go for it all.

this8384
Mar 25, 2009, 11:49 AM
Send them a letter saying that you dispute the debt as being yours and want them to provide you with documentation showing otherwise.

Make sure you it in writing; Asset Acceptance is a really crap-tastic company.