Topic: Debt with OC

[bewhoyouare]

Hello,

I just received a letter from the original creditor for credit card debt owed to a major bank. I live in the State of New York.

I originally defaulted on the debt in 2003. Since then, I have made monthly payments. At first they were small amounts. I was informed that the bank did not accept these payments. They have cashed each of the checks. Over time the amount has grown.

In 2003, I received notice that it had gone into collections, and I received a few calls from a collector. It’s not clear from the records whether the debt was sold to the collector, or whether the collector was working for the bank. After I sent a request not to be contacted by telephone, the calls stopped. The bank instructed me not to contact them, and when I called they wouldn’t talk to me. I kept sending checks every month and they kept cashing them. I also kept them informed of my current address.

In August of 2010, I received a statement from them indicating that I should pay a certain amount within 30 days. I promptly sent them a verification of debt letter, certified mail, return receipt to sender. I have kept making monthly payments. I checked my credit report, and this debt is not listed on the report.

Last week, I received a letter from them asking to be able to contact me by telephone.

I’m not sure what to do. I have the following questions:

1) Is this debt past the NY State 6-year statute of limitations? Or have my monthly payments reset the statute of limitations?
2) Is the bank obligated to verify the debt?
3) Is there a way to find out if they sold the debt?

I am considering stopping the monthly payments or proposing a settlement. I would appreciate any and all feedback.
Very grateful for these boards. They are very empowering. Keep up the great work.
Best Regards,
B

[KFMAN]

Who is them and have you looked at your Credit reports?

[bewhoyouare]

Thanks for the quick reply.

The debt is with Citibank.

I just got my credit report. It's not on there.

Thank you!

B

[arnanda]

Hi B!  If the date of first delinquency was in 2003, then it's beyond the 7.5 years for credit reporting.

Who are you sending your checks to?  OC?  If so, then they still own it or they wouldn't be still cashing your checks. 

They're only required to follow the FDCPA if your NY state law requires it. 

Making partial payments could extend your state SOL, if allowed in NY. 

What do you want to get out of it?  Pay it off?  Dispute it? 

[kevinmanheim]

Chance are, your payments aren't enough to cover the interest on the debt. The debt is probably larger now than it was when you defaulted.

The payments have likely reset the SOL.

If it were me, I would take all the paperwork to a local attorney and see if they can sort it out.

I would not communicate with or make payments to anyone until an attorney has looked at it.

[bewhoyouare]

OK. So it seems either way, the next best step is to stop paying them, as I have no idea whether they actually own this debt, or sold it sometime in 2002. Also, the payment tolls the statute of limitations. I’ve been sending them a letter each month with a payment, saying I would pay the next month. Do I send them another letter saying I will not pay until they can validate the debt? Or just stop?
Also, I am not sure under which law the OC falls under. I live in NYC, which has strict laws for “debt collection agencies”. This does not cover OCs. Not sure if they fall under the FDCPA, OCC, the Administrative Code.

It appears that, because I live in NYC, that the FDCPA applies:
5-21. CONSUMER CREDIT AND COMPLIANCE WITH THE LAW
Any person or business extending consumer credit must comply with all applicable federal, state, and local laws, including the Fair Debt Collection Practices Act; Fair Reporting Act; Equal Credit Opportunity Act; and NYC Consumer Protection Law Rule #5-77.
Because they did not “verify” the debt as requested in 2009, does this mean that they can’t collect on it?

[KFMAN]

OK. So it seems either way, the next best step is to stop paying them, as I have no idea whether they actually own this debt, or sold it sometime in 2002. Also, the payment tolls the statute of limitations. I’ve been sending them a letter each month with a payment, saying I would pay the next month. Do I send them another letter saying I will not pay until they can validate the debt? Or just stop?
Also, I am not sure under which law the OC falls under. I live in NYC, which has strict laws for “debt collection agencies”. This does not cover OCs. Not sure if they fall under the FDCPA, OCC, the Administrative Code.

It appears that, because I live in NYC, that the FDCPA applies:
5-21. CONSUMER CREDIT AND COMPLIANCE WITH THE LAW
Any person or business extending consumer credit must comply with all applicable federal, state, and local laws, including the Fair Debt Collection Practices Act; Fair Reporting Act; Equal Credit Opportunity Act; and NYC Consumer Protection Law Rule #5-77.
Because they did not “verify” the debt as requested in 2009, does this mean that they can’t collect on it?

I would pull my CRAs and see what they state about the alleged debts.

[Fighting Irish]

Look at your state law, and see what it says about SOL.

In some states, payments that do not bring the debt current do NOT reset it.

If that's the case, your debt is out of SOL, as you never brought it current.

Just out of curiosity, why did you continue to make payments that did nothing to lower the principal? Were you planning to keep making token payments till you die?