Kristi about SOL

Discussion in 'Credit Talk' started by Momof3, Nov 6, 2000.

  1. Momof3

    Momof3 Well-Known Member

    I just want to make sure I am correct on this issue. The debt went deliquent is 12/95 in the state of PA, which I read is 4 years, we are now in VA which I believe is 6 years. So does the SOL apply to the state in which the debt was orginated? just want to make before I do the C & D letter.


    Thanks
    Mom
     
  2. Momof3

    Momof3 Well-Known Member

    RE: Kristi about SOL confused

    I read up on your site about the 7 year rule and how the FCRA amended their guidelines in 1997, this debt was charged off in 95, so does that mean the amendments do not apply to this debt??


    thanks
     
  3. Momof3

    Momof3 Well-Known Member

    clarification for previous pos

    I realize the SOL can be renewed with agreement to pay, I am referring to the 7 year clock on the reports. Sorry if it was confusing.


    mom
     
  4. Kristi

    Kristi Guest

    The onset of the SOL is where the contract is signed, where the debtor resides or where the creditor is located. The norm however is always the debtors state. Some creditors do know however that the SOL can be either but I find that as often as I find a $20.00 in the gutter.

    Momof3 wrote:
    -------------------------------
    I just want to make sure I am correct on this issue. The debt went deliquent is 12/95 in the state of PA, which I read is 4 years, we are now in VA which I believe is 6 years. So does the SOL apply to the state in which the debt was orginated? just want to make before I do the C & D letter.


    Thanks
    Mom
     
  5. Kristi

    Kristi Guest

    RE: Kristi about SOL confused

    Thats only for reporting time not the SOL for collecting a debt. It's funny, we find that almost NO one even follows the pre ammended FCRA. I guess it is too confusing to keep up so people apply the general rule of the thumb which is 7 years from first serious delinquency which lead to charge off not the date you last had an activity.

    Momof3 wrote:
    -------------------------------
    I read up on your site about the 7 year rule and how the FCRA amended their guidelines in 1997, this debt was charged off in 95, so does that mean the amendments do not apply to this debt??


    thanks
     
  6. Kristi

    Kristi Guest

    RE: clarification for previous

    I figured that out mom! lol- The entire story ( and its short,I promise) is at http://www.carreonandassociates.com/reportingtime.htm so that I do not have to type it again.

    Let me know if that makes sense to you.

    Momof3 wrote:
    -------------------------------
    I realize the SOL can be renewed with agreement to pay, I am referring to the 7 year clock on the reports. Sorry if it was confusing.


    mom
     
  7. Kristi

    Kristi Guest

    RE: Kristi about SOL confused

    Ps:For those who are critics, I left out all the jazz in betweeen and just posted the basic so no need to correct me. It's too early still. LOL.

    Kristi wrote:
    -------------------------------
    Thats only for reporting time not the SOL for collecting a debt. It's funny, we find that almost NO one even follows the pre ammended FCRA. I guess it is too confusing to keep up so people apply the general rule of the thumb which is 7 years from first serious delinquency which lead to charge off not the date you last had an activity.

    Momof3 wrote:
    -------------------------------
    I read up on your site about the 7 year rule and how the FCRA amended their guidelines in 1997, this debt was charged off in 95, so does that mean the amendments do not apply to this debt??


    thanks
     
  8. Kate

    Kate Well-Known Member

    I am not Kristi but,...

    Mom,

    What type of debt are we talking about?

    The Statute of Limitation in PA are as following:

    Open 6 years
    Contract (Written/Oral) 6 years/4 years

    For VA:

    Open 3 years
    Contract (Written/Oral) 5 years/3 years

    1. The statute of limitations does not cause your debt to go away after it expires.

    2. The length of time a negative mark can stay on your credit report starts from the time you were late or the late payment went into collection, not from the last time you made a payment on the account.

    I hope that helps.
     
  9. Momof3

    Momof3 Well-Known Member

    Thanks

    it was a former utility company when we lived in PA, we now reside in VA.
     
  10. Kristi

    Kristi Guest

    RE: clarification for previous

    Reporting time for items on your credit reports.

    When a debt becomes seriously delinquent it is important to consider the time limitations for that period. The FCRA has been around since the 1970's but the provisions were amended in September 1997. Therefore it is important to take into to consideration if your debt was charged off before 1996 or after.

    Remember however that each state has it's own statutes so those statutes do apply to the actual reporting time.

    In General: We are going to use California statutes as an example here. To get the exact statutes to figure reporting time for your state go here and click on your state. Once there click on Civil Code and look under "Obligations of a Consumer Credit Reporting Agency". You will find the statutes that apply to you particular state.

    Reporting time: Section 1785.13. of the Calif. Civil Code

    Good credit stays for 10 years and then it is aged off but can stay longer.

    Bankruptcies that, from the date of adjudication, (means decision) antedate (means predate) the report by more than 10 years.

    Collection accounts and charge offs remain for 7 years from first serious delinquency or charge off date NOT the last date of activity.

    Paying an old debt does NOT reset the clock for another 7 years.

    Suits and judgments that, from the date of entry or renewal, antedate (predate) the report by more than seven years or until the governing statute of limitations has expired, whichever is the longer period. It is important to know that some states report a paid judgment for xx years from time paid vs. time filed. This can mean a lot if you pay your judgment so be sure to read your states statute to find out.

    Paid tax liens that, from the date of payment, antedate the report by more than seven years. Paid tax liens are reported for 7 years from date paid not filed! So pay them quickly!

    Records of arrest, indictment, information, misdemeanor complaint, or conviction of a crime that, from the date of disposition, release, or parole, antedate the report by more than seven years. These items of information shall no longer be reported if at any time it is learned that in the case of a conviction a full pardon has been granted, or in the case of an arrest, indictment, information, or misdemeanor complaint a conviction did not result.

    Any other adverse information that antedates the report by more than seven years.

    The seven-year period specified in paragraphs (5) and (7) of subdivision (a) shall commence to run, with respect to any account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency that immediately preceded the collection activity, charge to profit and loss, or similar action. Where more than one of these actions is taken with respect to a particular account, the seven-year period specified in paragraphs (5) and (7) shall commence concurrently for all these actions on the date of the first of these actions.

    A consumer credit report shall not include any adverse information concerning a consumer antedating the report by more than 10 years or that otherwise is prohibited from being included in a consumer credit report.

    Consumer credit reporting agencies shall not include medical information in their files on consumers or furnish medical information for employment or credit purposes in a consumer credit report without the consent of the consumer.

    Child support: A consumer credit reporting agency shall include in any consumer credit report information, if any, on the failure of the consumer to pay overdue child or spousal support, where the information either was provided to the consumer credit reporting agency pursuant to Section 4752 or has been provided to the consumer credit reporting agency and verified by another federal, state, or local governmental agency.

    Every consumer credit reporting agency shall maintain reasonable procedures designed to avoid violations of this statute and to limit furnishing of consumer credit reports to the purposes listed under Section 1785.11

    Also see our statute of limitations page to find out if your debt has expired.

    Further Proof....

    Here is an opinion from the FTC on this exact issue and should really clear up any concerns about re-aging debts or a payment extending the reporting time.

    TIME LIMITS

    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 charge off 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 charge off.

    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-charge off 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 charge off -- 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.



    Kristi wrote:
    -------------------------------
    I figured that out mom! lol- The entire story ( and its short,I promise) is at http://www.carreonandassociates.com/reportingtime.htm so that I do not have to type it again.

    Let me know if that makes sense to you.

    Momof3 wrote:
    -------------------------------
    I realize the SOL can be renewed with agreement to pay, I am referring to the 7 year clock on the reports. Sorry if it was confusing.


    mom
     
  11. roni

    roni Well-Known Member

    So Kristi. are you saying...

    If I had a debt charged off in 1995 and I paid/settled the account in 1997 how long can they report it. 2002 or 2005. The original delinguency was in 1991.
     
  12. Kristi

    Kristi Guest

    RE: So Kristi. are you saying.

    You mean the original DQ was 1991 and it took them 4 years to charge it off? Then the reporting time would be 7 years from first serious delinquency that resulted in a charge off.

    Section 623(a)(5), which became law in September 1997, requires a creditor that reports a charge off 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 charge off.

    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)



    roni wrote:
    -------------------------------
    If I had a debt charged off in 1995 and I paid/settled the account in 1997 how long can they report it. 2002 or 2005. The original delinguency was in 1991.
     
  13. roni

    roni Well-Known Member

    RE: So Kristi. are you saying.

    so, kristi what is junum gonna do about this.

    Kristi wrote:
    -------------------------------
    You mean the original DQ was 1991 and it took them 4 years to charge it off? Then the reporting time would be 7 years from first serious delinquency that resulted in a charge off.

    Section 623(a)(5), which became law in September 1997, requires a creditor that reports a charge off 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 charge off.

    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)



    roni wrote:
    -------------------------------
    If I had a debt charged off in 1995 and I paid/settled the account in 1997 how long can they report it. 2002 or 2005. The original delinguency was in 1991.
     
  14. Kristi

    Kristi Guest

    RE: So Kristi. are you saying.

    Fight it I would assume :)

    roni wrote:
    -------------------------------
    so, kristi what is junum gonna do about this.






    Kristi wrote:
    -------------------------------
    You mean the original DQ was 1991 and it took them 4 years to charge it off? Then the reporting time would be 7 years from first serious delinquency that resulted in a charge off.

    Section 623(a)(5), which became law in September 1997, requires a creditor that reports a charge off 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 charge off.

    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)



    roni wrote:
    -------------------------------
    If I had a debt charged off in 1995 and I paid/settled the account in 1997 how long can they report it. 2002 or 2005. The original delinguency was in 1991.
     
  15. roni

    roni Well-Known Member

    RE: So Kristi. are you saying.

    I guess I better tell them. They just disputed the item as not mine. And Discover verified it and changed the date to 1997. UGH!
     
  16. marvin

    marvin Well-Known Member

    RE: So Kristi. are you saying.

    If it was a revolving account, and it was brought current after the 1991 delinquency, I believe that the next one would be the date of delinquency. They go by the date of the LAST delinquency. I'm not sure of this, so if one of the more knowledgable readers would verify, or refute this, I would appreciate it, THANK YOU.
     
  17. Kristi

    Kristi Guest

    RE: So Kristi. are you saying.

    Marvin:
    It is the first serious delinquency that resulted in a charge off, profit and loss or similar action.

    The Rule:

    The seven-year period specified in paragraphs (5) and (7) of subdivision (a) shall commence to run, with respect to any account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency that immediately preceded the collection activity, charge to profit and loss, or similar action. Where more than one of these actions is taken with respect to a particular account, the seven-year period specified in paragraphs (5) and (7) shall commence concurrently for all these actions on the date of the first of these actions.



    Marvin wrote:
    -------------------------------
    If it was a revolving account, and it was brought current after the 1991 delinquency, I believe that the next one would be the date of delinquency. They go by the date of the LAST delinquency. I'm not sure of this, so if one of the more knowledgable readers would verify, or refute this, I would appreciate it, THANK YOU.
     
  18. marvin

    marvin Well-Known Member

    RE: So Kristi. are you saying.

    But if you brought it current after this delinquency, then it wouldn't be the one resulted in charge off, it wouldn't be charged off until you have another serious delinquency. The later one would be the one that is used for the date, because that would be the one that caused the charge-off, Right?
     
  19. Kristi

    Kristi Guest

    RE: So Kristi. are you saying.

    It is the first serious delinquency that lead to charge off.

    Marvin wrote:
    -------------------------------
    But if you brought it current after this delinquency, then it wouldn't be the one resulted in charge off, it wouldn't be charged off until you have another serious delinquency. The later one would be the one that is used for the date, because that would be the one that caused the charge-off, Right?
     

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