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Hello everybody's, it's been a few months since I've been here. I've got a few issues that I could use help with. Spouse has a collection with Citibank-Home Depot.

 

We live in Oklahoma. DOFD is probably around January 2010, (we are waiting on his hard copies of his credit reports). He was paying a monthly amount to a CR, CBE.

 

He started it without consulting me. And once he started it, I couldn't figure out a way to stop it without potentially facing a lawsuit. There was never a formal written agreement.

 

It was done over the phone. About a week ago, he got a letter from another CA, ARS National Servicing, stating they were assigned to collect on behalf of Citibank. The letter offered a 50% percent discount. I have researched for the last few days and this is what I have found out. I even called the state AG. In Oklahoma, all credit cards are considered to have an SOL of 5 years.

 

That issue has been a real sticky mess and even the OK consumer protection office agreed with me that it could vary between different jurisdictions. And then I found this bit of info about extending the SOL:

 

§12-101. Extension of limitation - Part payment, acknowledgment or new promise.

In any case founded on contract, when any part of the principal or interest shall have been paid, or an acknowledgment of an existing liability, debt or claim, or any promise to pay the same shall have been made, an action may be brought in such case within the period prescribed for the same, after such payment, acknowledgment or promise; but such acknowledgment or promise must be in writing, signed by the party to be charged thereby.

 

R.L. 1910, § 4663.

 

So I'm thinking that the SOL hasn't been extended since there never was a written agreement. Which would mean the SOL should be over. I sure could use some input on this.

 

The next issue I'm having is if a OC places an account in CO (loss and profit) aren't they writing that off for tax purposes? And if said CO is being paid on, is the OC double dipping? For some reason I can't wrap my brain around this one.

 

Next issue, if it is out of SOL, but being the OC still has the account, should I just send a FOAD or tread lightly and send a DV, wait for their response and then FOAD. On this initial letter from them There wasn't the sentence that this debt could be out of SOL and they couldn't sue him, and etc.

 

Any thoughts on this would be great.

 

Thanks everyone.................

 

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A charge-off is an accounting term

It does NOT mean the debt has been forgiven, or collection has to stop.

It doesn't matter about a tax write-off for the OC (except for you might get a 1099-C).

 

For a charge-off, the DOFD cannot change.

The 7-year credit reporting is based on the DOFD.

But SOL for lawsuits MAY be extended by making payments.

I'll let people above my pay grade elaborate on the specifics of that -- it depends on the nuances of state law.

You might have an argument with no written agreement - look for case law in OK to clarify.

 

 

Good luck!

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"In any case founded on contract..." First off, is a credit card a contract in your state?

 

You don't use the FOAD for anything that is still within 7 years. FOAD is telling them they can't report because it is too old. If it's not too old, there's nothing in a FOAD stopping them from reporting. Following the FCRA rules with a DV is what you need to get it off your report.

 

If payments are received on a CO account which was written off of taxes, that money is taxable for them. So it's not double-dipping.

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"In any case founded on contract..." First off, is a credit card a contract in your state?

 

You don't use the FOAD for anything that is still within 7 years. FOAD is telling them they can't report because it is too old. If it's not too old, there's nothing in a FOAD stopping them from reporting. Following the FCRA rules with a DV is what you need to get it off your report.

 

If payments are received on a CO account which was written off of taxes, that money is taxable for them. So it's not double-dipping.

 

Outside of 7 years would be an Obsolete dispute, followed by CFPB complaint and/or a lawsuit, depending on if the CRA is failing to delete or the CA/OC has re-aged.

 

FOAD are commonly used where the CA is actively trying collect on something outside of SOL, as a way of telling the CA "I know you can't sue me and I don't intend to pay. Save your breath and just go away"

Edited by JeffeVerde

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Hello everybody's, it's been a few months since I've been here. I've got a few issues that I could use help with. Spouse has a collection with Citibank-Home Depot.

 

We live in Oklahoma. DOFD is probably around January 2010, (we are waiting on his hard copies of his credit reports). He was paying a monthly amount to a CR, CBE.

 

He started it without consulting me. And once he started it, I couldn't figure out a way to stop it without potentially facing a lawsuit. There was never a formal written agreement.

 

It was done over the phone. About a week ago, he got a letter from another CA, ARS National Servicing, stating they were assigned to collect on behalf of Citibank. The letter offered a 50% percent discount. I have researched for the last few days and this is what I have found out. I even called the state AG. In Oklahoma, all credit cards are considered to have an SOL of 5 years.

 

That issue has been a real sticky mess and even the OK consumer protection office agreed with me that it could vary between different jurisdictions. And then I found this bit of info about extending the SOL:

 

§12-101. Extension of limitation - Part payment, acknowledgment or new promise.

In any case founded on contract, when any part of the principal or interest shall have been paid, or an acknowledgment of an existing liability, debt or claim, or any promise to pay the same shall have been made, an action may be brought in such case within the period prescribed for the same, after such payment, acknowledgment or promise; but such acknowledgment or promise must be in writing, signed by the party to be charged thereby.

 

R.L. 1910, § 4663.

 

So I'm thinking that the SOL hasn't been extended since there never was a written agreement. Which would mean the SOL should be over. I sure could use some input on this.

 

The next issue I'm having is if a OC places an account in CO (loss and profit) aren't they writing that off for tax purposes? And if said CO is being paid on, is the OC double dipping? For some reason I can't wrap my brain around this one.

 

Next issue, if it is out of SOL, but being the OC still has the account, should I just send a FOAD or tread lightly and send a DV, wait for their response and then FOAD. On this initial letter from them There wasn't the sentence that this debt could be out of SOL and they couldn't sue him, and etc.

 

Any thoughts on this would be great.

 

Thanks everyone.................

 

 

READ IT AGAIN

 

a payment restarts the SOL

 

a promise to pay , (without a payment made) has to be in writing.

 

an actual payment is considered an acknowledgment.

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When is the last time you paid the account? When you make a payment, it restarts the clock all over again. The first thing I'd advise you to do is maintain silence. Do not provide citi bank with any information and do not contact them for any reason. There is an Arbitration clause in your citi-bank contract. Read it. If they try to sue you, I'd invoke Arbitration. That's another can of worms. Some are for it, some are against it. I've used it to my advantage many times in Oklahoma. Arbitration costs them a fortune and the likely hood of them collecting is usually slim to none and they know this. Sometimes you will get a stubborn person who works for the company that wants to prove a point, but in the end they are going to lose money unless they get paid.

 

Is BK7 an option? It's not the end of the world. Its a whole new start.

 

The SOL in Oklahoma is 5 years as you said. Its not a sticky situation at all. I believe it is 5 years from the date you go 180 days past due.

 

I would confirm that it has indeed 5 years and allow a little bit of extra room. If they try to come after you via suit, then consider your options. Validate the debt, dispute the debt, counter suit, arbitration, or pay for delete ie a settlement.

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When is the last time you paid the account? When you make a payment, it restarts the clock all over again. The first thing I'd advise you to do is maintain silence. Do not provide citi bank with any information and do not contact them for any reason. There is an Arbitration clause in your citi-bank contract. Read it. If they try to sue you, I'd invoke Arbitration. That's another can of worms. Some are for it, some are against it. I've used it to my advantage many times in Oklahoma. Arbitration costs them a fortune and the likely hood of them collecting is usually slim to none and they know this. Sometimes you will get a stubborn person who works for the company that wants to prove a point, but in the end they are going to lose money unless they get paid.

 

Is BK7 an option? It's not the end of the world. Its a whole new start.

 

The SOL in Oklahoma is 5 years as you said. Its not a sticky situation at all. I believe it is 5 years from the date you go 180 days past due.

 

I would confirm that it has indeed 5 years and allow a little bit of extra room. If they try to come after you via suit, then consider your options. Validate the debt, dispute the debt, counter suit, arbitration, or pay for delete ie a settlement.

 

NO, Legal SOL starts on the date of default ( first missed payment ) or, as per the statute above a repayment resets the SOL. to 5 years from the last payment on the account.

 

180 days from DOFD is the requirement of a Charge off under( federal ) Office of Comptroller of the Currency ( OCC )

 

the FCRA limit for reporting is 7 years from the charge off or 7 1/2 years from the DOFD

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when any part of the principal or interest shall have been paid, OR an acknowledgment of an existing liability, debt . . .

 

The "OR" creates two independent actions that can reset the date. The written/signed clause at the end defines the action of acknowledgement the debt, but it does not constrain the independent action of making a partial payment. In effect, making a payment is an acknowledgement of the debt.

Edited by JeffeVerde

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