Repayment plan and SOL

[BethsMom]

What is the name of your state?What is the name of your state? PA
I recently got a nice raise and now have money to make significant payments on old credit card debts. Last payment on this debt was 12/98. A few months ago, I received a letter from Wolpoff and Abramson, LLP stating they were collecting the credit card debt. I wrote a letter proposing a payment plan and asked that the account be reaged by the bank. About the same time, I received another letter from the same law firm that was a notice of intent to sue. I called the number listed on the letter and spoke with a paralegal who said that payment plans would not be accepted and that I had to pay the entire amount (approx $5K) immediately to avoid a judgement. I told her that I am unable to make that sizeable of a payment. The paralegal said that I had to make a good faith payment that day. It was probably stupid, but I made a check by phone payment in the amount of my proposed monthly repayment plan ($200). When I hung up, I did some further reading and realized that the SOL is over, but that a payment restarts the clock. I immediately contacted my bank and put a stop payment order on the check. I am willing to repay the debt, but I do not want a judgement against me. Please advise as to next steps. Thank you.

[Ladynred]

I called the number listed on the letter and spoke with a paralegal who said that payment plans would not be accepted and that I had to pay the entire amount (approx $5K) immediately to avoid a judgement.

What a LIE ! This is a pressure tactic, nothing more, do NOT let them push your buttons ! W&A are complete SCUM, nasty and they break the law. Read the Fair Debt Collection Practices Act (FDCPA) and get REAL cozy with it. Learn your rights and their limitations.

Fortunately, just agreeing to pay them does NOT reset the SOL and since you stopped the payment, and they won't get any money, you should be ok.

Since this debt is WELL past the PA 4 year SOL, you can safely send W&A and any of their minions a cease and desist letter telling them to get lost, the debt is time-barred. I suggest you use this letter:
[url]http://whychat.5u.com/nottoca.html[/url]

Send the letter certified, RRR and keep copies of everything. If W&A contact you after you get the delivery receipt back, then you have them on even more violations of the FDCPA and you CAN sue them.

It's up to you whether or not you pay these scumbags, current wisdom is that you shouldn't do it at all, not on a time-barred debt. A 1998 debt is mostly like not even on your credit reports any more or is very close to coming off. You have an affirmative defense against any attempt to sue you for the debts (the expired SOL), and they cannot legally put these debts back on your credit reports once they fall off. Other than a warm fuzzy for you personally, there's no reason for throwing your money to the dogs. The junk debt buyer that bought your debt paid pennies (or less) on the dollar for it -- but they want it ALL plus years of interest and fees. They won't be out 5K if you don't pay them.. they'll probably be out less than $250 !