Held hostage for 6 years by debt collection

[steve_dallas]

What is the name of your state? Arkansas

In Feburary 1999 I agreed to participate in a MLM to get a friend to stop bugging me. I signed the credit app NOLY because I was 100% positive I would be deined a $750 a month payment for those products. I was worng. They approved me even with many late payments and a reposession on my report.

I immediately attempted to obtain a refund and the company denied me a refund. I have refused to pay to this day. There is the stalemate. Now their debt collection agency reages the account and adds fees monthly. The amount showing to be owed is now double the original amount. It shows on my credit report to be currently delinquent when it is in fact 6 and a half years old.

Outside of this I have no negative credit. Even with this I have a FICO in excess of 700. Does anyone have any realistic suggestions? Thank you.

[Veronica1228]

What is MLM and NOLY?

[steve_dallas]

Originally Posted by Veronica1228

What is MLM and NOLY?

MLM = Multilevel Company NOLY = only mispelled - is it any wonder the finance company was in house financing?

[Veronica1228]

If it has been 6 1/2 years since the last activity then it is probably past the SOL. I'm not sure what kind of debt this would be but SOL for the state of Arkansas is as follows:

Oral Agreements - 3 years
Written Contracts - 5 years
Promissory Notes - 6 years
Open Accounts - 3 years

If this is the case you can send them a C&D letter by CRRRM. Below is a link to a website that has sample letters that may help.

[url]http://www.creditinfocenter.com/[/url]

Good luck.

[steve_dallas]

[quote=Veronica1228]If it has been 6 1/2 years since the last activity then it is probably past the SOL. I'm not sure what kind of debt this would be but SOL for the state of Arkansas is as follows:

Oral Agreements - 3 years
Written Contracts - 5 years
Promissory Notes - 6 years
Open Accounts - 3 years

What impact does the SOL in my state have on the 7 years to report credit to my name. I disputed this once and they removed it, then reinstated it as a new debt with a new accoutn number. That made me think I'd just keep going through that cycle, so I've waited it out.

[Veronica1228]

[quote=steve_dallas]

Originally Posted by Veronica1228

If it has been 6 1/2 years since the last activity then it is probably past the SOL. I'm not sure what kind of debt this would be but SOL for the state of Arkansas is as follows:

Oral Agreements - 3 years
Written Contracts - 5 years
Promissory Notes - 6 years
Open Accounts - 3 years

What impact does the SOL in my state have on the 7 years to report credit to my name. I disputed this once and they removed it, then reinstated it as a new debt with a new accoutn number. That made me think I'd just keep going through that cycle, so I've waited it out.

The SOL of the debt does not effect the 7 year duration that an item stays on your credit report. However, this item should fall off of your report 7 years after it was initially placed. Ladynred will know for sure, but what they did with placing the item on your report again with a new account number (and possibly a new default date) is against the FCRA. I was just scanning that Act right now, but I couldn't find what I was looking for. If you want to look at it yourself, you can find it at the link I gave you before. Otherwise, check back tomorrow and someone else can answer that part for you.

[steve_dallas]

Thanks. I am ready to push them to take this off with only a few months left. In the least report the correct dates and amounts. Thanks for your help.

[Veronica1228]

Originally Posted by steve_dallas

Thanks. I am ready to push them to take this off with only a few months left. In the least report the correct dates and amounts. Thanks for your help.

You're welcome, but still check back. I will look into it further tomorrow or someone else may know for sure. Because if it is a violation of the FCRA (and I think that it is) you can get them into a lot of trouble.

[Ladynred]

Did they re-insert for the same amount under the same company name ??

If you were not notified, in writing, within 5 days of the reinsertion of the tradeline, then the CRA is indeed in violation of the FCRA. The MLM company is in violation for illegally re-aging and attempting to run the statute to keep this debt on your reports.

The reporting period is 7-1/2 years, calculated from the date of first delinquency that immediately preceeded placement for collections. Since you NEVER paid on this, then the first 30-day late would be the start of that 7-1/2 years.

The new FACT Act (amendment to the FCRA) allows us to dispute DIRECTLY with the furnisher of the information, so I would make it a 2-pronged attack. Dispute the reinsertion and illegal re-aging with the bureaus (include PROOF via old reports showing the old data) and also dispute with the MLM company directly.

For more information on the hardball tactics you're likely to need, head over to [url]www.creditboards.com[/url], they can help with ways to attack this.

[steve_dallas]

What they did was remove the original reoprting of delinquency when I disputed it. Their excuse is they changed internal accounting software so they removed the incorrect information reported about me and replaced it with "their correct" account number. They add fees each month and the date reported remains current to reflect my having very recently defaulted.
Thanks for your help.
Steve