I live in CA, have CA after me for a credit card that Trans Union states closed as of 11/2005. I believe SOL in CA is 4 years. But also has Date paid: 12/2007. Don't know what the date paid means, I never paid after 2005.
Hmmm- not sure what to tell you here. "Date Paid" should mean the last time you made payment on the account.
I'm also not sure why Date paid is showing 2007 - but if the OC closed the account on 11/2005 I would assume that the account probably was delinquent for several months before that point (unless it was closed by user). The SOL is based on the time since the account first became delinquent and since hasn't been brought current. Unless you got a bill 2 years later stating that you have a Credit Card balance of $X,XXX with a past due amount of $YYY - and then you paid the amount (which you admit you hadn't made any payments) - then you should be safe in terms of SOL. The only thing the SOL protects you from is a lawsuit by the creditor. They are still legally allowed to try and collect from you, send it to collections, and call you up to try and get you to agree to a payment. The older the account is, the bigger the amount of $$ that a CA will get as a percentage of collecting amounts, so expect more questionable activities.
The CA's seem to pass my credit card debts, all of which are at least 4 years old and older, to each other. Does this go forever? Can they just keep passing it to the next CA and renewing the debt.
Yep- if no one is ever able to collect, they'll just keep selling it over and over again to someone new.
They continue to pass the debt but they can't renew the date. The date of first delinquency before charge off will always start the date that starts the statue of limitations.
I have heard stories of debts that have been delinquent for 10+ years still being pursued (typically a CA that bought a large set of very old debts for a fraction of a penny each). Even thou the debt is past the SOL, and is no longer on your credit report, the only way they can't continue legally to try and collect from you (including continuing to sell the debt to other CAs) is if the debt was discharged through bankruptcy. The thing is, with no recourse, no possible lawsuits, and it not even being on your credit report, the old debts are just a slight annoyance. And since the odds of getting any money are very slim, don't expect the aggressive collection techniques that they do on the newer accounts. A simple letter stating they have a debt - you owe $$$$$$ on it, and they will do you a favor and settle for 5-10%. Heck, if they bought it for 1/5 of a cent, spend 20 cents on the bulk mail and get you to send them even $20 as a settlement, they win.
LA Times had a story today (Feb 1, 2010 Business section) by David Lazarus, wherein they confirm that after 4 yrs, CA's can't sue, they can continue to call, etc, but suing is out. Which means my 3 cards are well past the 4 yrs and also 2 have been charged off since 2004.
Bear in mind that this is only in California and a smattering of other states. If you live anywhere else, this doesn't apply. A CA can still sue you, and it's up to you go to court and raise the expired SOL as a defense.
