Where would I find information on what restarts the clock on SOL in Florida. I am concerned if talking to creditors and trying to work out payment or telling them you are considering BK would change the timeframe. I have not made a payment since 1996. Would like to pay just don't want to ruin credit for 7 more years. Thank you.
If you are going to pay off old collections make sure you get deletion for payment and negotiate the balance down. ca pays pennys on the dollar to buy collection actions. They make major $$$$$$$$$. If you do a search under "sol" or "statute of limitations" you will find some links that tells you the correct amount of years. I think it's 5 years but I could be wrong.
Early on I tried to work payment plan out with creditors, but they would not work with me and said I should file BK. I spoke with an attorney and gave the creditors his phone number to call (as he had told me to do). I was never able to file for BK. Just wanted to make sure me talking to them did not start the SOL clock all over or is it just when you actually make a payment? Thank you.
My take on it...let it slide Remember there is the reporting clock (isn't it 7.5 years from date of original delinquency) and the collection clock which depends on the state and type of debt (4 or 5 years in Florida). You cannot restart the clock for reporting by making a payment but you would restart the collecting clock. Making payments resets the collection clock and reaffirms the debt. You might even restart the collecting clock by acknowledging the debt through negotiations. The issue is how soon you want it off your reports. Wait it out (200X?) or negotiate a settlement for deletion. They will not negotiate you said, so maybe you ought to send them a cease and desist letter, and then they may only contact you once more to tell you they are taking a specific action. If you send the C&D make very sure it IS time-barred 'cause they may sue you at that point.
I live in Florida and have numerous medical collections and they are on my report for 7 years. What are you referring to with 5 years?
These are the SOL for each type of agreement: Florida - Oral Agreements 4; Written Contracts 5; Promissory Notes 5; Open Ended Accounts 4 Got this info from Some are talking about how long it can stay on the report which is controlled by the FCRA; others are speaking on how long the original creditor/CA have to try to collect on a debt which is where the SOL (which differs from state to state) comes into play.
'Time-barred' means that the statute of limitations has passed on the debt and the creditor has no legal right to make you pay. There are time limitations as to reporting AND collecting. Your absolute obligation to pay ends earlier than the period of time it can be reported by the bureaus. I think the person who started this thread ought to ask their lawyer if the debt is time-barred or not. Evidently not? Since the lawyer didn't already say so, or maybe they are stupid.
Collector a buys debt and immediately sells it to collector b. This is easy money for collector a and he didn't even have to deal with the consumer.
I have a question about this open ended accts. Is that in reference to credit cards? Also if you move to another state which SOL is currently valid? Is it the place where you stated the credit card acct? Because I had my account in Missouri, then I went to Texas, and now I am in Georgia, so which SOL is valid for me? I am so confused
Open ended accounts generally refer to credit cards, correct. Creditor can choose either the state you signed the contract in, or the current state you reside in. So if one allows 3 years on SOL and another 5, the creditor will go with the longer SOL if they decide to sue.
Just in case somebody reading this is new, I thought it would be worth jumping in and clarifying something. There are two different "clocks," and they sometimes get confused in posts here: 1) The Collection Clock. This is how long a creditor has to collect the debt, and that time period varies by state. When Creditnet members write about "SOL" they're referring to the collection clock under its formal legal "statue of limitations" moniker. After the SOL has run out, the creditor can no longer take active steps to collect the debt; they can't even sue you for it. After the SOL has expired, the debt is forgiven for all practical purposes. Now, of course, that never stopped a persuasive collection agency from trying, though. For that reason, it's important to find out what the SOL is in your particular state. If a CA happens to take you to court, simply show up, let the judge know the statute of limitations has expired on this debt, and he'll dismiss the case. 2) The Reporting Clock. This refers to how long a creditor can report something for inclusion in your credit files. That clock typically runs out at 7 years for everything except bankruptcy-related tradelines; in most areas bankruptcy tradelines can remain in credit files for up to 10 years. When you hear Creditnet members talk about accounts that have "re-aged" they're referring to a creditor re-reporting the date of last activity, which in effect restarts the clock for another 7 years. A vicious CA could, in that fashion, keep something on a credit report forever by simply re-aging the tradeline periodically. However, if they did that, you could drag them to court and win. The latest version of the FCRA now pretty much freezes the clock with the date of last activity remaining at 6 months after your most recent missed payment where no further payments were made. In other words, if you stopped paying Sears in January 1998, then the reporting clock begins at July 1998, and the tradeline will remain on your record until June 2005. Paying on the debt does restart the reporting clock. For that reason, you should negotiate these dates (and hopefully a full deletion) if you choose to negotiate payments for charged-off debt. Interestingly, if the collection clock (the SOL) is less than the reporting clock in your state, it's possible to have a debt appear on your credit file for a year or two that you no longer are technically obligated to pay. Such are the things that make real life pretty strange. Hope this little rant helps somebody out there. Doc
Creating any activity on an account can re-age the SOL in many states. DO NOT DO ANYTHING WITHOUT THERE CONSENT IN WRITING. DONT PAY ANY DEBTS that were charged off prior to 97. THIS CAN RE-age those accounts legally. Your lucky that you live in FLORIDA. Just ride it through and dont mess up again. Im sure you learned your lesson. Here in Ohio you would never live to see the end of an SOL....
I have to disagree with this one point. Paying on a debt that has been charged off or sent to collections does not restart the reporting clock. Below is an FTC opinion letter. #2 below is the part that talks about this subject. Ms. Alaina K. Amason 14155 Shire Oak San Antonio, TX 78247 Dear Ms. Amason: This responds to your letter concerning the time limitations imposed by the Fair Credit Reporting Act ("FCRA") on the reporting of chargeoff accounts by a consumer reporting agency ("CRA," usually a credit bureau). We list your inquiries on this topic below in italics, with our replies immediately following each item. 1. What reporting limits does the FCRA provide with respect to chargeoffs, and how long have they been in effect? Section 605(a)(4), which has been in effect since the FCRA became effective in April 1971, has always prohibited CRAs from reporting chargeoffs that are more than seven years old.(1) Section 623(a)(5), which became law in September 1997, requires a creditor that reports a chargeoff to a CRA to notify the agency (within 90 days of reporting the account) of "the month and year of the commencement of the delinquency that immediately preceded" the chargeoff. Section 605(c)(1) provides that the seven year period begins 180 days from that date. Both provisions were part of the major revision to the FCRA that were enacted in 1996.(2) 2. Is the reporting period extended if (A) the original creditor sells or transfers the account to another creditor, (B) the consumer responds to post-chargeoff collection efforts by making a payment on the debt, or (C) the consumer disputes the account with a CRA? Does it matter whether the 7-year period has expired when any of these events occurs? No. In enacting the new provisions discussed above, Congress intended to establish a date certain -- 180 days after the start of the delinquency that led to the chargeoff -- to begin the obsolescence period. It did so to correct the often lengthy extension of the period that resulted from later events under the original FCRA. Enclosed are two staff opinion letters (Kosmerl, 06/04/99; Johnson, 08/31/98) that discuss the impact of these provisions, and the legislative history relating to their enactment, in more detail. Because the commencement of the seven year period is now described with some precision by the statute, it is our opinion that none of the subsequent events you listed -- sale of the charged off account by the creditor, or a payment on or dispute about the account by the consumer -- changes the allowable period for a CRA to report a chargeoff. 3. Since Sections 623(a)(5) and 605(c)(1) provide new rules for calculating the 7-year period that became effective in 1997, do chargeoff accounts now have different obsolescence periods depending on when the chargeoff occurred? Yes. Section 605(c)(2) states that the section "shall apply only to items of information added to the (CRA) file of a consumer on or after" 455 days after enactment, or December 29, 1997. Therefore, a chargeoff reported to a CRA on or after that date is subject to the new commencement-of-the-delinquency method of calculating the obsolescence period set forth in Sections 623(a)(5) and 605(c)(1). On the other hand, a chargeoff reported to a CRA before December 29, 1997, is not covered by the new provisions, as discussed in one of the enclosed letters (Kosmerl, 06/04/99). If a credit account was reported as a chargeoff before that date, the Commission's view has been that it can be reported for seven years from the date the creditor actually charged it off.(3) The opinions set forth in this informal staff letter are not binding on the Commission. Sincerely yours, Clarke W. Brinckerhoff -------------------------------------------------------------------------------- 1. Section 605(b) provides that there is no time limit applicable to a report made in connection with credit involving a principal amount (or insurance with a face amount) of $150,000 or more, or employment for a salary of $75,000 or more. Prior to September 1997, those amounts were $50,000 and $20,000, respectively.
LKH This question has come up on several occasions. I think the section that everyone should be wary of is where it says the following: No. In enacting the new provisions discussed above, Congress intended to establish a date certain -- 180 days after the start of the delinquency that led to the chargeoff -- to begin the obsolescence period. It did so to correct the often lengthy extension of the period that resulted from later events under the original FCRA. To me, if you have a delinquency prior to 1997 when this new provision was enacted the date can be extended if a payment is made. It seems to me they are saying this was revised in 1997 to stop this loophole in the original FCRA. I could be wrong, but it seems that is what the opinion is saying. So if you have a tradeline prior to 1997 you will want to get it in writing before making a payment or you could extend the date.
