Tick-tock goes the clock on old debts

September 10, 2015

by Cristina Miranda 

Consumer Education Specialist, FTC

ARTICLE LINK (CLICK HERE)

Here’s a fun way to think about a tricky topic. You know the scene in Lewis Caroll’s Alice in Wonderland when the white rabbit hops off saying “I’m late! I’m late! For a very important date!”? Imagine the rabbit is a debt collector. The important date? It’s his last chance to legally make you pay money you owe. Why he’s late? The debt collector has run out of time to sue you for an old and unpaid, or time-barred, debt. For more, follow me down the rabbit hole...

What is a time-barred debt?
It’s a debt that’s too old for a debt collector to sue you to make you pay. Debt collectors have a limited number of years – called the statute of limitations – to sue you to collect on money you owe. Statutes of limitations vary by state, and by type of debt.

What can I do if a debt collector calls about an old debt?
Debt collectors can contact you about time-barred debts at any time. If you get a call from a debt collector, they might come right out and say they can’t take you to court to make you pay a time-barred debt. If a debt collector doesn’t tell you this, ask for the date when you made your most recent payment. Then, ask for a validation notice – a legally required letter detailing the amount owed, and the creditor name. Once you receive the notice, send a letter back within 30 days explaining that you are 'disputing' the debt and that you want to 'verify' it. Debt collectors must stop trying to collect until they give you verification.

What if I’m sued for an old debt?
Don’t ignore it. Defend your debt collection rights. Consider talking to an attorney in order to prove that the debt is time-barred, and have the lawsuit dismissed. To do this, you may be asked to provide a copy of the verification from the collector, or any information you have that shows the date of your last payment.

Do I have to pay a time-barred debt?
It’s up to you. Here’s what can happen:

• Pay nothing. Not paying a debt may lower your credit rating. So check your free credit report first to see if a time-barred debt has been reported. If the debt appears on your credit report, this could make it harder and more expensive for you to get credit, insurance, or loans. Debts stay on your credit report for seven years after you stop paying. Although debt collectors can no longer sue you for a time-barred debt, it won’t make it go away. Debt collectors can keep contacting you to pay because you still owe the money. If you want them to stop, send a cease communications letter.
• Partially pay. If you make, or promise to make, a debt payment, the statutes of limitations clock may reset and your debt will no longer be considered time-barred. A debt collector can then sue you for the full debt amount, plus interest and fees.
• Pay it off. Before making a full payment, get a signed letter from the debt collector saying that your entire debt is being settled to release you from further obligations.

Debt or debt collection issues on your mind? Talk to us! Write your questions in the comments section below, and we will pick a few to answer. To report a scam, visit ftc.gov/complaint.

Tagged with: credit report, debt, debt collection

Blog Topics: 

Money & Credit

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Please contact us if you need help or resources as we are here and happy to help!

Respectfully,

Dana Shafman

Managing Member

END Consulting

(888) 234-7006 Ext 101

Dana@ConsultingEND.com

www.TheDailyComplaint.com

SELENE FINANCE

SELENE COMPLAINT:

Submitted:      Mar 2015

Reported By:     derrith in Saucier, Mississippi

Report Link:   CLICK HERE

UNFAIR DECEPTIVE ABUSIVE ACTS & PRACTICES

Bank of America sold our mortgage to Selene in September of 2014. This was around the same time I was transitioning from a government job that had laid of hundred of people into another job. I called Selene in November, before my payment was due, just to ask what the grace period was because I knew I would be a few days late due to my new job having a delay on my first check. I did not say I could not make my payment, and I have never been late before or never had I not been able to pay. The representative told me that as a service to their customers they had a repayment plan that I could do. She said I could skip November's payment to help me get ahead and the payment would be divided into three installments added to the next three normal monthly payments. She offered this service to me, I did not ask for any assistance. On the final month of my repayment they pulled my final payment then they pulled $2300 extra dollars out of my account for which I am not sure why. I called them and they were adamant that they did not even though my bank verified this. They would not give me back the money. My bank gave it back to me and they filed it with Selene to get their money back. Two days later my bank informed me Selene was trying to take another $1150 out of my account. I had to pay my bank to stop them from being able to take ANYTHING out of my account ever again. When I called Selene to ask why they were trying to take all this money from me, the individual i spoke to was extrememly rude and huffed in aggravation, and even mumbled bitch at one point. By this point I had had enough of Selene and we went to my bank to refinance. Upon doing this, we find out that Selene had been reporting us to the credit bureau as delinquent for November's payment. They reported us every month after. This destroyed both out credit and since we had been reported we were unable to refinance. Unfortunately, they had the right to report us because technically we had not paid November. I felt that they should have informed us this would happen if we did this repayment plan because I never would have agreed to it especially since I didn't really need to. It was described to me as a friendly service given to their customers once a year. Also, this repayment plan was never done in writing. It was verbal. I do not know that if I had gotten it in writing if it would have disclosed this information, but I was never told I would receive paperwork about this agreement nor did I receive anything. I feel that they deceived us and this is NOT how you do business. SELENE DOES NOT CARE ABOUT THEIR CUSTOMERS. WE ARE JUST OBJECTS. THEY WANT OUR PROPERTY. THEY WILL GET WHAT IS COMING TO THEM. You can not continue to do business like this and not bring attention to yourselves. Reading everyone else's experiences, it is clear to me that this has to end.

END CONSULTING ADVICE:

Hello derrith,

It is absolutely disgraceful not to mention abhorrent and egregious how Selene has treated you as a customer. With that said, you do have rights and by simply understanding them and knowing how to exercise them, you can hold Selene Finance accountable for their actions.

I would first suggest that you visit the CFPB's website at ConsumerFinance.gov to learn more about your consumer rights and you will also want to visit the FTC’s website at ftc.gov to learn more about the Fair Debt Collection Practices Act (FDCPA) as that dictates what debt collectors can and can’t do when collecting your debt…Selene Finance is acting as a debt collector in these instances.

We have battled Selene Finance and won with a forbearance agreement issues as well as other debt restructuring issues so just keep fighting until you get the solution that you are seeking.

In fact, we covered your Selene complaint today on our radio show The Daily Complaint and provided a pathway for success to include how to contact the CFPB - thank you all for posting your complaint online so that others will have the opportunity to learn from your experiences in dealing with Selene Finance. There are firm rules in place with regard to mortgage servicing and debt collection but you must know your rights in order to exercise your rights.

In addition to submitting complaints to the CFPB and FTC, I would always suggest preparing a QWR or Request for information for Selene Finance that you can submit via fax or email – you can learn how through the CFPB by typing in QWR in their search bar. Selene is required to acknowledge the QWR or Request for information per RESPA in 5 business days and answer it in 30 business days or you do have recourse, so listen to us address the Selene issues on The Daily Complaint today and contact us if you need further information on how to not only attack your problem but to get the solutions that you are seeking.

You can absolutely hold Selene Finance accountable for their actions while obtaining the mortgage solutions that you are seeking without a legal battle but there is always small claims court if you must battle legally (a minimal outlay of cash versus an attorney and doesn’t require an attorney).

Good luck!

Respectfully,

Dana Shafman

Managing Member

END Consulting

(888) 234-7006 Ext 101

Dana@ConsultingEND.com

www.TheDailyComplaint.com

SPECIALIZED LOAN SERVICING

SLS COMPLAINT:

Submitted:      June 2015

Reported By:     SLS Victim Clare in Milwaukee, WI

Report Link:   CLICK HERE

False Delinquency Notice

Our mortgage was bought by Specialized Loan Servicing from our original mortgage holder about 18 months ago.

We had no problem until recently when we received a delinquent payment notice from a COLLECTION AGENCY. SLS claimed that we had not made our June payment. We had made the June payment early as we were going to be out of the country after May 25, 2015.

I attempted to call SLS as soon as I saw the delinquency notice. After a 10 minute wait - accompanied by loud music - I was connected with "Erika". She informed me that the May 20th early payment was viewed as an addition to the original May payment. She asked for a phone contact number, which I supplied. She said the situation would be rectified the next morning (June 30). She announced she needed to put me on hold. I requested no music. She said she would put me on "mute". In the process we were disconnected. Since I had just given her my phone number, I assumed that she would use it to call me back. Nothing.

I do not wish to be subjected to another annoying 10 minute episode of music. I therefore await a return call - preferably from FREDERICK KORB or DOLORES GILDEN to settle this matter immediately.

END CONSULTING ADVICE:

Hi SLS Victim Clare,

You are so right to be upset about the delinquency notice you received from a collection agency and about the actions of SLS with regard to posting your payment as I can completely validate your complaints after many dealings with SLS. I commend you for voicing your concerns as it is an important step in asserting your consumer rights.

You have so many consumer rights and consumer protections under the FDCPA and the CFPB and the FTC and RESPA with regard to your complaint and it only takes a few minutes to submit the complaints online to the CFPB and FTC for an immediate response and action.

In fact, we covered your complaint today on our radio show The Daily Complaint and provided a pathway for success to include how to contact the CFPB and the FTC - thank you for posting your complaint online via Complaints Board so that others will have the opportunity to learn from your experiences in dealing with SLS. There are firm rules in place with regard to the posting of your payments and correcting errors made by the servicer in a timely manner, you must know your rights in order to exercise your rights.

In addition to submitting complaints to the CFPB, I would suggest preparing a QWR or Notice of Error for SLS – you can learn how through the CFPB by typing in QWR in their search bar and you never have to speak with them or listen to that awful hold music again. They are required to acknowledge the QWR or Notice of Error per RESPA in 5 business days and answer it in 30 business days or you do have recourse, so listen to us address your complaint on The Daily Complaint today and contact us if you need further information on how to not only attack your problem but to get the solutions that you are seeking. You can hold SLS accountable for their actions!

Good luck!

Respectfully,

Dana Shafman

Managing Member

END Consulting

(888) 234-7006 Ext 101

Dana@ConsultingEND.com

www.TheDailyComplaint.com

NATIONSTAR MORTGAGE

NATIONSTAR COMPLAINT:

Submitted:      June 2015

Reported By:     pattiv in Deltona, Florida

Report Link:   CLICK HERE

They [Nationstar Mortgage] are horrible!

Nationstar has made my life a living hell. In Feb. I made 3 months of payments because I fell behind and at tax time got caught up. This time, I made the payments and continued to make payments. Then in April, my payment was returned. I couldn’t understand why so I called and they told me the payment I made in Feb. was returned NSF. I knew it didn’t and called my bank that agreed it was paid. We sent statements and letters from the bank and I call them on a weekly basis. They kept insisting it was returned but couldn’t tell us where it was returned to. I made another payment in May, which they are just holding. Now in June, they tell me it was not returned it was applied to the account but I’m like no it didn’t, look at the balance. They want me to repay a huge amount that I don’t owe so now I’m going to lose my house. They are so frustrating and clueless about what is going on. I need help I’m at my wits end.

END CONSULTING ADVICE:

Hi pattiv,

Nationstar Mortgage is known for violating the rights of their clients and consumers in general but you do not have to sit back and take it! You have so many consumer rights and consumer protections under the FDCPA and the CFPB and the FTC and RESPA with regard to your complaint and it only takes a few minutes to submit the complaints online to the CFPB and FTC.

In fact, we covered your complaint today on our radio show The Daily Complaint and provided a pathway for success to include how to contact the CFPB and FTC - thank you for posting your complaint online so that others will have the opportunity to learn from the wrongdoing that you have experienced at the hands of Nationstar Mortgage and other debt collectors responsible for servicing your mortgage. There are firm rules in place with regard to the posting of your payments and also to threatening foreclosure when not warranted or in error but again, you must know your rights in order to assert your rights.

In addition to submitting complaint to the CFPB and FTC, I would suggest preparing a QWR for Nationstar Mortgage – you can learn how through the CFPB by typing in QWR in their search bar. They are required to acknowledge the QWR per RESPA in 5 business days and answer it in 30 business days or you do have recourse, so listen to us address your complaint on The Daily Complaint today and contact us if you need further information on how to not only attack your problem but to get the solutions that you are seeking. You can hold Nationstar accountable for their actions!!!

Also, DO NOT listen to any idiot that tells you that you are wrong and do not have consumer rights because they are wrong, period.

Good luck!

Respectfully,

Dana Shafman

Managing Member

END Consulting

(888) 234-7006 Ext 101

Dana@ConsultingEND.com

www.TheDailyComplaint.com