Business on Personal Credit

[Driller]

I have two accounts on my personal credit that are from business accounts that I defaulted on. One was a bank loan that I personally guaranteed and one is from a business credit card. The Bank sold both to a debt buyer. I had the debt buyer recently verify the accounts the Bank loan is only 4 years old so they sent a signed contract but the credit card is 20 yrs old and I don’t think they have anything signed as they returned a blank credit card application. I have 12 months before the SOL runs out. They are aware they have a year to sue and since we’re looking at 50K I expect it. The credit card I don’t think should be on my personal credit but the loan since I personally guaranteed I am probably stuck with it.

So if I press they will probably will go to court. If they do not have a signed credit card contract can they collect? I offered to settle both but they are being a little difficult. How Can I use the fact that they do not have any signed agreement to negotiate a pay to delete? Plus they are putting business accounts on my personal credit


Can a Bank call back a loan that they have sold to a debt buyer? I would rather work with the Bank.

Any help would be appreciated

[Lian]

When you use the FCRA to obtain verification of a debt, such as with the CC, they do NOT have to provide documentary evidence in order to verify its accuracy. The FCRA only requires that they investigate its accuracy and issue a finding. So while a dispute item is undergoing administrative dispute under the FCRA, you don't have recourse to their supporting documentation.

However, the whole game changes should you end up on court. Under the discovery rules of civil procedure, you would then be entitled to request any relevant information pertinent to your defense, and they would be under compulsion of the court to meet your discovery requests (unless the court denied your discovery request as not being material). Then, if you discover that their "verification" during the administrative FCRA dispute process was knowingly false or without basis, you would have an additional action against them. That is when and where the facts must be put on the table.

In your case, with a 20-year old debt, it has probably passed the statute of limitations on your legal obligation, and would thus be a time-barred debt. In many cases, if a debt collector brings legal action on a debt where they know that the SOL has expired, that can constitute a violation of the FDCPA.