Author Topic: Is it true? Partial payment does not necessarily reset DOLA in certain states?  (Read 1385 times)

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CutieMaddie

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Is this really true??????

http://www.creditinfocenter.com/rebuild/statuteLimitations.shtml

Does a Partial Payment Restart the SOL?

Depending on what state you live in, if you make a partial payment, you could be postponing the Statute of Limitations' taking effect on your collection account or charge-off. A collector might call you one day and say you waived your rights when you made a deal with the collection agency. Do not take anything a collector tells you for granted. Make them prove it to you, in or out of court. For about half the population, the Statute of Limitations started ticking the day they made the last payment for their account.

Some states have laws which specify that a partial payment does not restart the clock on the SOL, unless there is a new written promise to pay. What that means is that you actually write out a new agreement with the orginal creditor and/or collection agency. If you live in one of these states, simply sending in a check doesn't restart the clock. The statute of limitations is only extended by new written promise to pay in these states:

Arizona, California, Florida, Iowa, Kansas, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nevada, New York, Texas, Virginia, West Virgina, Wisconsin.

Please review the exact state statutes and the fine print associated with them before relying on this website's info. Your situation may not apply.

cprems

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Depending on your State of residence.

Texas is one such State.

Tex. Civ. Prac. & Rem. Code 16.065. [HN7] An
acknowledgment under Texas law must: (1) be in writing
and signed by the party to be charged; (2) contain an
unequivocal acknowledgment of the justness or the
existence of the particular obligation; and (3) refer to the
obligation and express a willingness to honor that
obligation. Stine v. Stewart, 80 S.W.3d 586, 591, 45 Tex.
Sup. Ct. J. 966 (Tex. 2002). Under Texas law, an
acknowledgment operates as a new obligation rather than
merely as a revival of prior debt. In re Vineyard, 132 F.3d
at 271.


C_W_Asset_Acquisition_LLC_v._Knox__104_Fed._Appx._936__5th_Cir._2004_

Thanks to MR E for this!

ALL my postings have NO legal value.

 I AM the "village idiot" please hold my posts to this standard.

 If you need legal Counsel - contact an Attorney.

CutieMaddie

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According to that website, the following states are:
Arizona, California, Florida, Iowa, Kansas, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nevada, New York, Texas, Virginia, West Virgina, Wisconsin.

Now, does this apply if you "settle in full" to a collection agency, or a collection agency that purchased the debt?

cprems

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Depending on how your State law reads.

I gave you an example.

If you paid already, there really is not much you can do.

What State are you in?


According to that website, the following states are:
Arizona, California, Florida, Iowa, Kansas, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nevada, New York, Texas, Virginia, West Virgina, Wisconsin.

Now, does this apply if you "settle in full" to a collection agency, or a collection agency that purchased the debt?
ALL my postings have NO legal value.

 I AM the "village idiot" please hold my posts to this standard.

 If you need legal Counsel - contact an Attorney.

CutieMaddie

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I'm in Michigan. Here's an example: repossession in 2007. Made payments to a collection agency in 2009 and 2010. So, does the SOL begin in 2007 or 2010?

E. Normis Debtor

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Some states have laws which specify that a partial payment does not restart the clock on the SOL, unless there is a new written promise to pay. What that means is that you actually write out a new agreement with the orginal creditor and/or collection agency. If you live in one of these states, simply sending in a check doesn't restart the clock. The statute of limitations is only extended by new written promise to pay in these states:

Arizona, California, Florida, Iowa, Kansas, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nevada, New York, Texas, Virginia, West Virgina, Wisconsin.
Be wary of such "general" lists as Kansas should not be included.

Kansas courts, including its Supreme Court, have consistantly held that under Kansas statute K.S.A. 60-520(a) partial payment speaks for itself, and revives the obligation.

However, the payment can be conditional, and serve to ratify the amount due on the original agreement, once the SOL for the original agreement has run.  Provided such conditions accompany the payment. 
I don't respond to PM's or emails for advice on specific circumstances.  My participation in this forum is general in nature, and not intended to create an attorney/client relationship.

cprems

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Read your State RCP's specifically the statute of limitations and tolling. A partial payment may reset the SOL.


I'm in Michigan. Here's an example: repossession in 2007. Made payments to a collection agency in 2009 and 2010. So, does the SOL begin in 2007 or 2010?
ALL my postings have NO legal value.

 I AM the "village idiot" please hold my posts to this standard.

 If you need legal Counsel - contact an Attorney.