Hello all, first off, I am new to this board, but I am a frequent poster to other credit boards and I have been chin deep in this credit restoration process for many years now. I look forward to working with each of you to share experiences and kick some Collection Agency A**! My question is, what statute of limitations is in effect for a debt? The state where the contract was signed, or the state I live in now? I have heard many different views on this. The reason I ask is that I am fighting some old debts that I opened when I lived in Pennsylvania, and now I live in Missouri. Missouri has crappy SOL laws (10 years for most accounts), and PA has SOL of 4-6 years for most accounts. This will make a big difference in how I fight these accounts because I want to know that I am untouchable. Oh, by the way these accounts all charged off in 1996.
I believe the CA can choose which state they want to use as far as the SOL goes. However, I'm not 100% on this, and would like absolute confirmation on it as well. Just as you are, I've got a debt signed in one state, and I have now moved to another and there are several years difference in the SOL's and like all of us would prefer to lesser of the two, which happens to be the state I signed the contract in.
Found this at creditinfocenter: According to Ron Opher, of www.ron4law.com: In my opinion, the FDCPA applies, and so the only relevant jurisdictions are where the consumer signed the loan application and where the consumer currently lives (bank location is irrelevant). If those states are different, I believe the creditor has the choice of where to sue and can select the state with the longer SOL. There may also be an argument that the contract was signed "under seal" which might lead to a longer Statute of Limitations than an ordinary contract.
The Missouri SOL does not "override" the PA SOL for that contract, except for suits in Missouri. If you entered into a contract in PA, you could be sued in the courts of that state and the PA SOL would apply. If you were sued in Missouri, the Missouri SOL would apply. Also you must bring the SOL as a defense, it is not "automatic". -Peace, Dave
Thanks for the replies everyone. It turns out that I'm not that concerned anyway. Almost all of my accounts are old credit card accounts, so they would be under the SOL for open accounts which is 6 years in PA and 5 years in MO (is it just me or do these change all the time). Therefore, they went delinquent in 1996, and the SOL would have expired in each state.
Just curious, how many years have you been repairing, and if many as you stated, why has it taken so long?
Re: Which SOL applies? (LENGTHY) That's a very good question. A little background on my situation: I had excellent credit up until Spring of 1996, when I was in college and fell behind on my obligations because of course load, part time work, etc. At the time, I had quite a few credit card accounts (at least three Visa's, Discover, Personal Loan, Auto loan, and a couple of department store cards), and slowly but surely each one of these accounts fell behind and eventually charged off as my financial situation got worse. All of these accounts got placed on my reports, my credit went down the tubes and the collections began, etc etc... Well, I really didn't begin the credit repair process until late in 1997 and 1998 because I wasn't aware that it could be done. The problem is, my knowledge of credit repair processes mainly revolved around the FCRA and disputing the accounts with the credit bureaus over and over and over again. I had some luck, and I gradually got accounts deleted, but my results were mixed. A couple of times, accounts re-appeared after I had them deleted, new collections would show up, all the usual problems associated with this method. I was never sued for any of these accounts because they were either too small to collect (no single account over $2,000) or I was just a college student with no income so I was "judgement proof" for quite some time. I graduated in 1999 and since then my credit has become very important, and I have been disputing religiously with the bureaus, and learning all I can about credit repair. Only two months ago, I discovered debt validation as a way to handle collection accounts. I also learned of the statute of limitations. This was like a revelation to me, and I have been studying everything I can find on the process, and taking it to the collection agencies. I have had more accounts deleted in the past two months than I had the previous year. It has been amazing. One other thing working in my favor is that by now, these accounts are all fairly old, and either the SOL has expired, or the seven year period for credit reporting comes up next year. The thing that really sucks about this whole nightmare, is that I have lived with bad credit for the past SIX years. I can't remember when I didn't have bad credit. It has been horrible. Thank goodness sites like this one exist to assist with getting people back on their feet and fighting back against the curse of bad credit.
Re: Which SOL applies? (LENGTHY) This is the same thing I'm trying to pin down in another thread. The thing is...depending on who's opinion you accept, the sol starts running either on the date the account became delinquent...or the date it was charged off which should be about six months after delinquency...which theoretically could kick the SOL beginning into 1997. This is critical to me right now as the contract was signed in a five year state, but I am now living in a six year state. I just filed a lawsuit against them and am kind of starting to expect a cross-claim. I want to get my facts straight so I'm not left standing there like an idiot and with my mouth opening and closing like a guppy IYKWIM. I can't go check Lexis because our bill was over the contract by over $300 and it was mostly on the account that *I* use. I know I didn't go outside our contract, but until that gets straightened out, I am too nervous to run anymore searches just in case I have to pay it myself. L
Re: Which SOL applies? (LENGTHY) Does this letter help? February 15, 2000 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. Brinckerh
Re: Which SOL applies? (LENGTHY) The Statute of Limitations in Pennsylvania is 4 years and NOT 6 years as stated. Alot of websites are reporting this inaccurately as 6 years when in fact it is 4 years across the board for all contracts, open, written, verbal and promissary notes. I know this only because I went to see my attorney yesterday about contesting several old credit card accounts with original creditors. I wanted to know what the statute of limitations in PA was so I wouldn't piss any of these creditors off if they did in fact have proof. She showed me in black and white out of her law book which clearly stated 4 years! Yipee!!! Since all of my debts are over 4 years old! Be careful what info you rely on when searching the web. Always check with an attorney first! Fred S.
Re: Which SOL applies? (LENGTHY) Thanks for the info! I have also seen the conflicting statutes on various websites. I was erroring on the side of caution with the PA SOL. That means that I am in no danger with these accounts. I have an absolute defense if I am sued regardless of what state they choose to sue me in. Now, would it be advisable to include this information in any subsequent validation demands to the collection agencies? This would serve a couple of purposes, including reminding them that they have no real chance of ever collecting this debt, and I also have this on record should I ever need it. Any thoughts?
Re: Which SOL applies? (LENGTHY) Welcome to this site. Share the good news about the board with others please.
Re: Which SOL applies? (LENGTHY) If you are comfortably beyond the SOL, I recommend putting a statement into any cease and desist letter to the effect that you are notifying them you are beyond the sol and any threat of, or action on their part to file suit against you with prior notice that it is time-barred is a violation of the FDCPA prohibition against unavailable legal action.
