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SOL? Settle? Any advice appreciated.


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Situation: Capital Management Services collecting for Citibank.

 

Opened 2013 or earlier in Louisiana.

DOFD : August 2016.

 

Balance showing: just under $6,000.

 

Showing as CO and reporting monthly.

 

Original credit limit $5,000, was never maxed out.

 

Moved to Florida June 2017.

 

CMS offering to settle for under $1200.

 

Questions:

Does the Louisiana SOL of 3 years still apply?

Does CMS pay for delete?

Should I settle? Looking to purchase. home in about a year.

 

Thanks for any and all advice.

 

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Settling will HURT your credit, not help it as it will be reported as a "paid" collection settled for less than the balance.Because it will still be a derogatory BUT NEWER it will sink your credit scores.

 

https://whychat.me/States/state-fl.html

 

Florida has a 4 year SOL, however it also has a rule that says;

95.10 Cause of action arising in another state.
--When the cause of action arose in another state or territory of the United States, or in a foreign country, and its laws forbid the maintenance of the action because of lapse of time, no action shall be maintained in this state.

 

So you are still beyond the 3 year SOL from La.

 

Try this;

https://whychat.me/GUIDEBOOK.html

https://whychat.me/SOL PROGRAM GUIDE.html

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You will need to review Florida statutes to see when you acquired protections under Florida law.  In MANY locales, you are a 'resident' after twelve months, and since that would be less than three years from the default, you likely have no protections under Louisiana law EXCEPT and UNLESS the Agreement expressly stated that Louisiana law was controlling. 

 

Any settlement should be conditioned upon a deletion by the reporting entity.  You are looking to purchase a home, so you ARE going to have to resolve this in some form or fashion...OR put the purchase off until after 2023 and hope the mortgage underwriter does not pull a full-factual.  

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21 hours ago, Why Chat said:

Settling will HURT your credit, not help it as it will be reported as a "paid" collection settled for less than the balance.Because it will still be a derogatory BUT NEWER it will sink your credit scores.

 

https://whychat.me/States/state-fl.html

 

Florida has a 4 year SOL, however it also has a rule that says;

95.10 Cause of action arising in another state.
--When the cause of action arose in another state or territory of the United States, or in a foreign country, and its laws forbid the maintenance of the action because of lapse of time, no action shall be maintained in this state.

 

So you are still beyond the 3 year SOL from La.

 

Try this;

https://whychat.me/GUIDEBOOK.html

https://whychat.me/SOL PROGRAM GUIDE.html

+1,000.

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