Author Topic: Why don't junk debt buyers make a payment on each account to restart S.O.L. ?  (Read 500 times)

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HeadsUp

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I am curious about this.

Junk debt buyers often buy debts which are beyond the S.O.L. for pennies on the dollar and then attempt to collect the balance plus fees and interest. 

Since any payment on a debt seems to automatically reset S.O.L. and it doesn't seem to matter who makes the payment on the debt, why don't they just make a small token payment on each debt, and thus, revive the zombie debt so they could then turn around and sue the debtor without having to worry about their lawsuit being time-barred?

If they really wanted to be really clever about it, they could buy money orders anonymously, and then send them in the mail to themselves, apply the money orders as payments toward the debts, and then turn around and claim the debtor made a payment, and thus, reset the S.O.L.

Does this ever happen, and if not, why not?
Finally a collector admits it...

"The reality is that there are people who can't pay and the job of an agency in my opinion is to separate those who can and those who cant and to not waste resources and efforts on those who cant." -- Dr. Evil.

All this nonsense about aggressive judgment enforcement against someone with no assets is just that-- utter nonsense.

http://www.debtorboards.com/index.php?topic=13309.msg100303#msg100303

maggie22

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Well, years in a prison cell for fraud comes to mind...Just ask the former mayor of Detroit, or a former Michigan Supreme Court Judge or fill in the blank....

trueq

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Its also an FDCPA violation.

JDB's that want to stay in business, will avoid doing that.
My free speech is not legal advice.  If you need legal advice, you need to talk to a lawyer.

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Arbitration record:   9 wins * 0 loses
Court Record:         2 wins * 2 judgments (1 of the 2 judgments has been vacated, other judgment upheld on appeal, marked "satisfied", because I wrote a check.)

The one bank that beat me in court, I now have a $2200 limit credit card from them again.
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TomNTex

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For one, it has been tried, but usually shot down. Ever now and then you see where the account has been reaged because some fool tried it. Also, not all states allow just one or two payments to restart the SOL. It depends on each states laws.

Clydesmom66

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I just had a debt removed from all 3 credit reports because of a JDB that did just that:  fraudulently stated I had made a significant -payment last year, re-aged the debt, and listed the account as open for starters.  Once I sent a DV and they ignored it I filed a complaint with the BBB in their state and they agreed to remove it and drop the collection activities which I am sure upset the law firm they had allegedly retained to pursue it.

I am certain they wished to avoid my suing them in Federal Court for several thousand dollars for FDCPA violations.
Be VERY careful following advice from the internet! What worked for someone with thousands of posts on a message board may not work for YOU in your state.  Consult a lawyer when ever possible.

kevinmanheim

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In 90% of JDB court cases, it doesn't matter when the last payment was made because the defendant doesn't show up in court.


Flyingifr

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I am curious about this.

Junk debt buyers often buy debts which are beyond the S.O.L. for pennies on the dollar and then attempt to collect the balance plus fees and interest. 

Since any payment on a debt seems to automatically reset S.O.L. and it doesn't seem to matter who makes the payment on the debt, why don't they just make a small token payment on each debt, and thus, revive the zombie debt so they could then turn around and sue the debtor without having to worry about their lawsuit being time-barred?

If they really wanted to be really clever about it, they could buy money orders anonymously, and then send them in the mail to themselves, apply the money orders as payments toward the debts, and then turn around and claim the debtor made a payment, and thus, reset the S.O.L.

Does this ever happen, and if not, why not?

Judges are not idiots. You be the Judge in this case:

XYZ Company is suing Joe Debtor for Breach of Contract. Joe asserts a Statute of Limitations defense. In your State SOL is 6 years. XYZ produces a posting history on the account showing the following:

Date of Sale January 1 1996

Payments made monthly until September 1996 when payments stopped

Interest accrued and was posted monthly until March 2013 when all of a sudden a $5.00 payment is posted to the account.

The lawsuit was filed in April 2013 and the summons was served almost immediately. Both the plaintiff and the defendant are in the Courtroom awaiting your decision.

OK, Your Honor - do you believe the plaintiff's assertion that after almost 17 years of non-payment the defendant suddenly sent the plaintioff a $5.00 payment as the plaintiff claims? Or do you believe the defendant's assertion that he did not make that payment and the debt is, in fact, barred by the Statute of Limitations?

The entire Courtroom is awaiting your decision.
« Last Edit: March 23, 2013 02:11:59 AM by Flyingifr »
BTW-the Flyingifr Method does work. (quoted from Hannah on Infinite Credit, September 19, 2006)

I think of a telephone as a Debt Collector's crowbar. With such a device it is possible to pry one's mouth open wide enough to allow the insertion of a foot or two.

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flacorps

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In one case the defendant was able to show the court that the money order in question had been purchased at the convenience store next to the collector's offices. Dismissed!
"History has taught us that weakness is provocative. To the extent that people see an area of weakness, they will take advantage of it..." - Donald Rumsfeld

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