SOL for NC

[kimjerpixie]

What is the name of your state? North Carolina

What is the SOL of credit card debt in NC?

Three years ago, I lost my job for six months. When I was employed again, it was at half my previous income. From the beginning, Citibank has refused to work with me on a payment plan and has turned my account over to collections. Since then they are making my life miserable. I WANT to pay off the debt, but no one wants to take my money unless I pay in full! I have no savings and no assets. What is my best couse of action?

 

[bigun]

A credit card is considered an open account. According to the following site, the SOL for NC is 3 years.

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

When did you last pay the OC? That'll determine the when the SOL clock begins.

 

[kimjerpixie]

I believe the last payment made was in 2001. What can happen next?

 

[bigun]

I'd strongly suggest you find out when in 01 you last paid.
Who knows what can happen? They may sue you or, they may keep calling and calling.
You've the right to demand they validate the debt and you can send a letter saying no more contact except by mail but, that does carry some risk since you're inside the SOL.

 

[kimjerpixie]

I'm pretty sure last payment was beginning in 2001, maybe even late 2000, so I'll check. If I ask them to send validation, will that information be there?

I've offered numerous times to make payments, but they won't accept any money (which I think is strange) unless it's the full amount or the settlement amount- so I haven't sent them anything.

At what point can they take me to court? I don't have any assets that I can sell. And the interest is out of control - almost twice the original debt.

 

[bigun]

If I were you, I wouldn't give any hint that the SOL may be close.
Does your credit reports show a chargeoff date? If so, you defaulted about 180 days prior to chargeoff. DO you have any old dunning letters from the OC with a date or, any old statements that show a late fee?
I'm just not a real fan of validation inside the SOL. Others will certainly have a better idea .

 

[kimjerpixie]

Chargeoff date is November 2001, but the CA claims my last payment was July 2002. Does that mean my SOL would now run out in July 2005?

Also, the chargeoff amount was for $5800 but CA is asking for $11,700. Can they tack on this much interest? I only get yelled at when I question the amount.

 

[bigun]

SOL begins with a cause of action. In other words, when you first went into continious default. FDIC regs require chargeoffs at 180 days so, if the Nov. 01 date is correct you went into default sometime in the April-May timeframe of 2001.
Get your Experian report. It should show a "comeoff date" that is 7 years {roughly from chargeoff}. See what that report says before you go any further.

 

[Ladynred]

If the date of last activity has been changed to 7/02 by the CA, then it sounds like its been illegally re-aged to 'run the statute' on you.

SOL runs from about 6/01 should expire in 6/04.

Yes, they can tack on that much interest as long is its in the credit agreement .. and it usually is. The interest rate post charge-off is usually WAY higher than anything you may have been paying when the account was still good.

 

[kimjerpixie]

I went to the Equifax website and pulled up my credit report. It shows the account as being charged off and last activity in February 2001. Date reported was April 2003. Does this means they have run out of the SOL and are trying to bully me into payment?

 

[bigun]

It's close. Remember, you went into default 180 days PRIOR to chargeoff so, the last time you paid would be in Aug or July of 2000.
Pull Experian and see what that one says.
You have no records? No check registers, no canceled checks? I'd suggest you're darn close to the SOL running. I'd feel more comfortable if you had something to really nail down a month. Here's the portion from the FDIC regs that says 180 days.
I'll post a link to the entire regulation as well.

The quality of retail credit is best indicated by the repayment performance of individual borrowers. Therefore, in general, retail credit should be classified based on the following criteria:
• Open- and closed-end retail loans past due 90 cumulative days from the contractual due date should be classified Substandard.
• Closed-end retail loans that become past due 120 cumulative days and open-end retail loans that become past due 180 cumulative days from the contractual due date should be classified Loss and charged off.{2}

{2 For operational purposes, whenever a charge-off is necessary under this policy, it should be taken no later than the end of the month in which the applicable time period elapses. Any full payment received after the 120- or 180-day charge-off threshold, but before month-end charge-off, may be considered in determining whether the charge-off remains appropriate.


http://www.fdic.gov/regulations/laws/rules/5000-1000.html

 

[kam2051]

If the chargeoff date is 2/01, then the last payment made would be, as bigun said, July or August 2000. This would make the SOL expire in July or August 2003.

I'd try to fish for any statements that you can, especially during this timeframe. For example, if you have the last few statements that show non-payment?

 

[bigun]

Yes, any old statements that show a late fee assessed or, any old dunning letters that say you're 60 or 90 days late or whatever that are dated? ANYTHING!!!!!

 

[kimjerpixie]

I'll see what I can dig up.

 

[kevinss]

Remember, CAs lie. Don't talk to them on the phone - they'll only try to scare you, bully you, and confuse you. Just a ward of warning