Crazy Situation...

[wasmith3]

What is the name of your state? Kansas

Ok, this is complicated...sorta.

I was married from 1993 to 1997 and during that time, my wife and I, like most young married folks, decided we needed alot of new and neat stuff. So, we put things on credit.

Since I was in the military and had a good job, I was the only one with credit. So, most things were in my name alone.

When we divorced, we kept the process simple. Non contested and all that....we verbally split the bills (all in my name).

Out of the 5 credit accounts we had, I took 3 and left her with 2.

The 2 she took, were the 2 that she kept the "merchandise" that was financed.

Well, all was good for the last 7 years. I bought a house, she did too. I live in Kansas, she lives in Florida.

Recently, I decided to refinance my mortgage. When running my credit report, they noticed some "discrepencies". Those 2 accounts that she was to pay off, were on my report.

I called, the number on the credit report to contact the finance companies, and they said nothing has been paid on these accounts in 7 years and an interest rate of 18% has been building since. They are both now handled by a collection agency.
The total amount has risen from $2500 to $3800.

I called my ex-wife to "discuss" the matter, she basically blew me off. She says, it's not in her name and she's not paying for it. Even though, she still has the merchandise that was financed.

These collection agencies are now calling me at home, work and on my cell phone wanting their money. They're calling her as well, since I asked them to. But, they said they will come after me if they get no response from her.

Is there anything I can do to make her pay for this? Small claims?
Or do I even have a case? Or has the SOL expired?

 

[bigun]

The SOL in Ks. and Fl. ran long ago.

http://www.edebtnetwork.com/content/collection_laws.asp

You need to look at the credit reports for a chargeoff date. The accounts defaulted about 180 days prior to chargeoff and that begins the SOL. If nothing has been paid in 7 years, the accounts should fall off your report in about 6 months.

A snippet from and FTC opinion letter on reporting guidelines and I'l post a link to the letter.

The Committee bill specifies that the seven-year period with respect to information concerning a delinquent account charged to profit and loss . . . may begin no more than 180 days after the commencement of the delinquency immediately preceding the ... action.

http://www.ftc.gov/os/statutes/fcra/johnson.htm

Here is a site with some good SOL info.

http://community-2.webtv.net/Y-chat/WhyChatsCredit/

I'd suggest writing a letter to the ca's saying the alleged debt is timebarred and never contact you about the matter again. Concentrate on finding out when this stuff rolls of your report and make sure it goes off.
A little hint. ON Why Chat's site, there is a number to call to OPTOUT. Call it and it'll keep the CRA's from notifying scavanger collection agencies that you're looking for credit and they don't crawl out of the woodwork.

 

[wasmith3]

Thanks for the reply!

Is there a process of having this removed from my credit report?
And does an expired SOL remove my responsibility from this debt?
After sending the C&D to the agencies, what do they typically do with the account?

This is one of the best forums on the web...very helpful and informative!

 

[Ladynred]

In all but 2 states, the SOL has EXPIRED if the creditor has not been paid in 7 years.

SOL for credit cards in KS is 3 years - LONG EXPIRED !

Not only that, if its truly been 7 years since the accounts went delinquent, they should be dropping off of your credit report, 7 years is all they can stay for derogatory entries.

Send the CA's a cease and desist letter. Tell them never to contact you again as the debt is time-barred.

Here's an excellent letter to use to get rid of them. The state statute you need for the letter is on the same site:

http://community-2.webtv.net/YCHANGE/STORAGE/page13.html

I'm a bit late.. my internet access went down in the middle of writing this. Anyway.. at the bottom of the page with that letter is a 2nd letter you can use for the CRA's to get the entries removed.

 

[Accntman]

Look at the sol for the state that the credit card company is chartered in. We get stuff like this all the time but we follow since we are registered in the state of delaware there laws

 

[bigun]

Acctnman,

Your advice is incorrect. Read the FDCPA. You may be sued only in the county that you signed the application or, your current residence.

 

[JETX]

"Is there a process of having this removed from my credit report?"
*** Yes. When the full 7 years from the last activity has passed, you can contact the CRA (Credit Reporting Agency) and ask them to validate the debt and to remove it if the 7 year reporting period has expired.

"And does an expired SOL remove my responsibility from this debt?"
*** Sort of. The debt itself can remain unpaid forever, but the expiration of the SOL makes the debt unenforcable. Simply, if any debtor were to try to file a lawsuit against you to collect the debt, that lawsuit can be stopped simply by answering that it has expired.

"After sending the C&D to the agencies, what do they typically do with the account?"
*** As provided in the FDCPA, if a 3rd party debt collector receives a Cease and Desist letter from a debtor:
"(c) CEASING COMMUNICATION. If a consumer notifies a debt collector in writing that the consumer refuses to pay a debt or that the consumer wishes the debt collector to cease further communication with the consumer, the debt collector shall not communicate further with the consumer with respect to such debt, except --
(1) to advise the consumer that the debt collector's further efforts are being terminated;
(2) to notify the consumer that the debt collector or creditor may invoke specified remedies which are ordinarily invoked by such debt collector or creditor; or
(3) where applicable, to notify the consumer that the debt collector or creditor intends to invoke a specified remedy.
If such notice from the consumer is made by mail, notification shall be complete upon receipt."

 

[wasmith3]

Thanks JETX for your reply.

I've sent out validation letters to the collection agencies CRRR. And once I get my reciept, I'll be sending my SOL letter.

I've had luck with having one of these charge lines removed from my CR. But, Trans-Union didn't send me the information they used to validate alot of the very old debts that are still showing up. I did request that they send that information to me. Can I make them send it to me?

Thanks for all your help! You guys are fantastic!
-Wasmith

 

[bigun]

You've every right to demand a procedure request from the CRA's.
If this is a large scale cleanup, you really need to read the FCRA.

http://www.ftc.gov/os/statutes/fcra.htm

 

[wasmith3]

Ok, I got a second letter from Trans Union today.

In response to my request for investigation procedures and validation, this is what I got:

"We store information in our records as it is supplied to us by creditors. When information is disputed, we are required to investigate and record the current status of the information. We do no provide dispute verification responses recieved from creditors. If you need to obtain documentation or written verification concerning your accounts, then please contact your creditors directly."

Trans Union, in this letter, provided me with the name, phone number and address of each reporting creditor.

I was under the impression, they were required to updated all information on my accounts according to current information from all creditors. To this date, they have not. Many of these accounts show "date of last activity" as a recent date when these debts have been charged off for over 3-4 years.

What am I doing wrong here?

 

[JETX]

Your action will largely depend on what you have done so far..... and how you have done it.

You first need to ask the creditor to validate the debt. This can't be just a broad 'fix it' demand, but must request specific information. A good sample letter detailing the information you need can be found at:
http://www.creditinfocenter.com/forms/sampleletter9.shtml

Then you have to wait the 30 days allowed for them to respond.

Once the 30 days has passed, then you should contact the CRA's (Credit Reporting Agencies) wtih your request to clear up the report using the debt collector provided information (or lack of) to support your demand.

Good sample letters for this process can be found at:
http://www.creditinfocenter.com/forms/

Finally, a good 'how-to' on this entire process of validation can be found at:
http://www.creditinfocenter.com/rebuild/debt_validation.shtml

So, have you done ALL the above??

 

[bigun]

Welcome to the incestous world of creditors and, CRA's.

http://www.naca.net/BennettFCRATestimony.pdf

You'd better get seriously comfortable with the FCRA .
A great place to discuss this is www.creditboards.com

 

[wasmith3]

"You first need to ask the creditor to validate the debt."
***I have done this by sending them a validation letter sent CRRR.

"Then you have to wait the 30 days allowed for them to respond."
***It's been 2 weeks so far. I've recieved one reciept and no response so far.

My next step was to send both of these CA's a time-barred letter. Considering these accounts are past thier SOL.

Now, once I get these "responses" or lack thereof from the CA's, I should forward that to the CRA's with a request to have these items removed or updated with correct info?

Thanks for your help JETX.

 

[Ladynred]

Did you request a procedural report from the CRA's ? Per the FCRA, it is your right to request a full report on HOW they 'verified'. That testimony link Bigun provided is an eye-opener !!

 

[wasmith3]

I did request it. I did not recieve it. Just a list of of creditor names and addresses.