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homebuyer08 · Jan 4, 2009, 02:16 AM

I opened an account in 2001 with a loan shark. I had a job loss which resulted in a unpaid debts. One particular debt they located me after 4 years and I began making payments just to be honest. It has now been 7 years since this debt became delinquent. When I agreed to began making payments did that restart my statute of limitations? Can they sue me

stevetcg · Jan 4, 2009, 06:21 AM

Disregard my previous answer.

SOL begins at the time of your last payment. If you gave them money 4 years ago that's when the clock started.

homebuyer08 · Jan 4, 2009, 09:56 AM

I also noticed an exorbitant increase in the amount and I have made payments on this account. The account was sold to them from the original creditor and I've noticed it has tripled. Can I stop making payments now or do they have grounds to sue me? We are trying to buy a house now.

stevetcg · Jan 4, 2009, 10:28 AM

Late fees and interest add up quick. They can, and probably will, sue you for all of it.

homebuyer08 · Jan 4, 2009, 10:47 AM

Ok. Let me clarify this so that I have complete understanding... Sounds like I may need to speak with an attorney.
I am presently looking at my credit report. Equifax states acct opened 08/2001, date of last payment 09/2003, date of deliquency 11/2002. They contacted me and I began making payments in 06/2005.
1. The St. of Limi. Began in 2005
2. They can sue me
3. This report can stay on my credit report an additional 7 years because I began the statute of limitations over again by making a payment?

stevetcg · Jan 4, 2009, 01:47 PM

Yes, except the SOL begins when you END making payments, so if you made a payment yesterday, the SOL begins today.

homebuyer08 · Jan 4, 2009, 01:52 PM

I've been researching the flsenate.gov and it looks as if it stated that there must be a written agreement to pay. I haven't completed any written payment. I only took their word about the debt. Is this a clause or do I not have any defense except to proceed in court?

stevetcg · Jan 4, 2009, 02:22 PM

You are getting out of where I have any knowledge and you are best to consult a local lawyer who is more familiar with the laws.

But bottom line... if the debt is legit, its probably not going to go away.

homebuyer08 · Jan 4, 2009, 02:24 PM

I don't mind paying the debt, however, I want to be treated fairly in doing so. I do not want to pay for exorbitant fees that are added because of an acct being sold. Thanks for your assistance

ScottGem · Jan 4, 2009, 02:29 PM

Steve is correct The SOL starts from the last activity on the account. If you have made payments it goes from the date of last payment.

Another point a "loan shark" is an illegal lender. An illegal lender is not going to take you to court (maybe the hospital, but not court).

So your next step is to see if you have a real defense against them.

Most will negotiate a settlement, but if you can't pay a lump sum they will not be that willing to cut the amount.

homebuyer08 · Jan 4, 2009, 02:34 PM

Thanks for your assistance stevetcg and scottgem.
I will proceed to speak to consumer advocate first then an attorney.

stevetcg · Jan 4, 2009, 03:09 PM

Originally Posted by homebuyer08

I don't mind paying the debt, however, I want to be treated fairly in doing so. I do not want to pay for exorbitant fees that are added because of an acct being sold. Thanks for your assistance

Those fees and interest are fair. You agreed to it when you took out the original loan. Interest accrues even if you don't pay. This is money that they lent you at a certain interest rate and they could not use that money for other things while you had it. I'd like to take your side on this, but they have a right to their money too. Sorry.

Best plan would be to work with them, asking them to help you out in the process by reporting to a credit agency a non-negative item. They might, if it helps them get paid.