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Report: #297544

Complaint Review: Law Offices Of Harris & Zide On Behalf Of Midland Credit Management - Pasadena California

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  • Reported By: San Jose California
  • Author Confirmed What's this?
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  • Law Offices Of Harris & Zide On Behalf Of Midland Credit Management 1445 Huntington Drive, Suite 300 Pasadena, California U.S.A.

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I was reading an article on your website that stated if an old debt is no longer on your credit report, you should absolutely NOT pay it.

Back in 2005, when trying to refinance my condo, this debt was on report from the original debtor, The Associates. It stated the following:

"Charged off as bad debt. Profit and Loss Write Off.

Washington Mutual sent me a check made out to The Associates for $1,730.00 and told me I had to contact them and get a mailing address to send the check to.

I contacted The Associates, and they informed me that I did not owe them any money. I then had the debt removed from my credit report and Washington Mutual re-issued the check in my name.

I am now being sued for this old debt that is no longer on my report. I reside in California and my understanding is that after 4 years, you are no longer responsible for this debt.

I remember back in 2005, being contacted by a company that threatened to attach my wages if I didn't make a payment on a debt.

They scared me, so I paid them $1,000.00 to get them off my back. But I'm not sure if it was this same debt or not.

If I made a payment on this debt within the last 4 years, does that "re initiate" the debt? Am I now responsible for paying this debt?

The original debt of $1,730 has now become more than $6,000 with interest.

I tried to settle with the law firm for the original debt amount, but they are telling me they won't settle for anything less than 60% of the $6,000.00

Should I seek legal advice or take my chances in court?

I would appreciate any light you can shed on this matter.

Tmac
San Jose, California
U.S.A.

This report was posted on Ripoff Report on 01/06/2008 02:02 PM and is a permanent record located here: https://www.ripoffreport.com/reports/law-offices-of-harris-zide-on-behalf-of-midland-credit-management/pasadena-california-91030/law-offices-of-harris-zide-on-behalf-of-midland-credit-management-being-sued-for-old-deb-297544. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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REBUTTALS & REPLIES:
0Author
6Consumer
0Employee/Owner

#6 UPDATE EX-employee responds

bill

AUTHOR: Camil - (U.S.A.)

POSTED: Sunday, March 16, 2008

people you should just pay your bills and this wouldnt happen yes your responsible for the debt and let me clear up a charged off issue this means that the company has wrote it off and actually if you get audited by the irs you are suppose to be filing that as income to you and nd to fill out a form becausse the company has written it off but you still owe

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#5 Consumer Comment

Payment can reset SOL

AUTHOR: Denise - (U.S.A.)

POSTED: Wednesday, February 06, 2008

Each state is different on what action resets the SOL. But more than likely, you're $1000 payment did it. But the good thing is, it won't be back on your credit report.
Resetting the SOL now gives the creditor/collection agency more time to seek legal remedy.
Julie, you're confusing the SOL date with the reporting period.
Debts that have been charged-off or are sent to collections will remain on your credit report for 7 years.

The 7 yr. reporting period cannot be reset by making a payment or by reselling the debt to another collection agency.
A collection agency can pursue this debt forever. However, if they're over the SOL they just can't sue you for it. That doesn't mean they can't try but if they do, you'll have a solid defense.

And garnishments can only happen with judgment. A collection agency cannot threaten to take your wages unless they have the legal right to do so.
An agency cannot threaten you with action they never intend to take or are legally capable. That is a violation of the Fair Debt Collection Practices law.

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#4 Consumer Suggestion

SOL for lawsuit

AUTHOR: Julie - (U.S.A.)

POSTED: Wednesday, February 06, 2008

Sounds like your best defense would be to be able to prove that your DATE OF DELINQUENCY was ON OR BEFORE October 5, 2003. Check your bank records.

This would be critical. The sol is absolute.

It is very easy, after this length of time, for the date of delinquency being reported is actually inaccurate.

If you owed the money and you're not outside the sol, they're going to get a judgment against you. However, if you can substantiate any FDCPA or FCRA violations you can also get a judgment against them. This could give you some ammunition to make a settlement that you can live with.

By the way, for anybody else reading the previous post - making a payment after delinquency (e.g.) to a collection company DOES NOT RESET THE SOL.

Julie

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#3 Author of original report

Resetting the Statute of Limitations

AUTHOR: Tmac - (U.S.A.)

POSTED: Sunday, January 06, 2008

I have already filed a "response" to their summons and have now been sent a Form Interrogatory - Limited Civil Case which is asking for all kinds of information regarding the debt.

It then goes on and asks me to admit to several items, one of which states the following:

That you have not made a payment on the account since 10/31/03.

This may be referring to the payment I made but wasn't sure if it was in regards to this debt.

The original summons was "endorsed" on 10/05/07, which happens to be just before the statute of limitations would run out if that payment was in fact on this debt.

It is sounding like they have all the documentation that they need to win this lawsuit.

I was reading up on "Affirmative Defenses" and came across the following:

What about something called "Laches" - The law requires people to act promptly to enforce their rights. If the plaintiff waited a long time to file a lawsuit, without having good reason for the delay, and the delay has made it harder for you to defend the case, this defense may apply to you.

Any thoughts or advice or comments on this?

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#2 Consumer Suggestion

You are probably responsible.

AUTHOR: Robert - (U.S.A.)

POSTED: Sunday, January 06, 2008

When a debt is "Charged-Off" the original creditor wrote your debt off, so The Associates were correct you did not owe them anymore. However, the debt does not go away. The Associates sold the debt to another Collection Agency, from your title I would imagine that company was Midland Credit Management. They are now the ones who you would owe the debt to.

Now it comes down to the Statute of Limitations. You are correct that in CA the SOL is 4 years from the date of the delinquency. However, once you made the payment in 2005 you reset the SOL. Once they filed suit they will no longer settle for the original amount, and have added on Court costs and their legal fees which probably account for at least several hundred dollars.

Your one chance might be when you said you were not sure if this was the same debt that you paid. Read the documents of the suit and find out if you are required to send in a response. If so do not admit to the debt, but require that they provide proof that they filed while the SOL still applied. If they can't find a payment the judge will have to throw it out. This is something you can write on your own, but it might be worth getting an attorney to write it up for you. They should be able to do that for you for a couple hundred dollars. They would also probably give you other specific advise for your case.

If you do end up doing a settlement with them be sure to get it in writing, and still show up on your court date even if they say you don't. This is because if they show up you will then get a default judgement against you.

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#1 Author of original report

UPDATE

AUTHOR: Tmac - (U.S.A.)

POSTED: Sunday, January 06, 2008

I was reading an article on your website that stated if an old debt is no longer on your credit report, you should absolutely NOT pay it. Back in 2005, when trying to refinance my condo, this debt was on my report from the original debtor, The Associates. It stated the following: "Charged off as bad debt. Profit and Loss Write Off. Washington Mutual sent me a check made out to The Associates for $1,730.00 and told me I had to contact them and get a mailing address to send the check to. I contacted The Associates, and they informed me that I did not owe them any money. I then had the debt removed from my credit report and Washington Mutual re-issued the check in my name.

I am now being sued for this old debt that is no longer on my report. I reside in California and my understanding is that after 4 years, you are no longer responsible for this debt. I remember back in 2005, being contacted by a company that threatened to attach my wages if I didn't make a payment on a debt. They scared me, so I paid them $1,000.00 to get them off my back. But I'm not sure if it was this same debt or not. If I made a payment on this debt within the last 4 years, does that "re initiate" the debt? Am I now responsible for paying this debt? The original debt of $1,730 has now become more than $6,000 with interest. I tried to settle with the law firm for the original debt amount, but they are telling me they won't settle for anything less than 60% of the $6,000.00 Should I seek legal advice or take my chances in court? I would appreciate any light you can shed on this matter. Tmac San Jose, California
U.S.A.

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