What is meant by the statue of limitations on an "open" account? In Louisiana there is a SOL of 10yrs on oral/written/promissory notes and 3yrs on "open" accounts. I need to understand what that is. Secondly, if an account is charged off, can it still report a balance on the credit report? If it does, wouldn't that be an FCRA violation on the furnisher of information?
open typically includes credit cards, and the like... charged off does not mean that the balance no longer exists... now, if the oc transferred or sold the account, the balance would have to be zero, because they were paid the balance (or a portion thereof -- by the purchaser)...
Open accounts are defined as open ended, that is there is no set time at which the account is satisfied and closed. This term defines ALL credit card type accounts. Written would be a contract written up for a loan with a set amount of payments of a set amount. Hope this clears that up for you. Yes, a charged off account still has the balance on it. When an account gets charged off, all this means is that the credit card company has written the account off as bad debt and show it on their taxes as a loss. Only when an account gets sold to a collection agency (usually only on accounts way past the SOL (Statute of Limitations)) It seems like a CA shouldn't be able to put a tradeline on your credit report for $4000, when the original creditor is still showing on your report for the same $4000. That is one of the unfair policies of the credit reporting agency. That way it looks like you have $8000 in debt when you only have $4000. They are supposed to clearly link on the CA's tradeline to the original creditor, but then some times you get a debt assigned out, sold, assigned and assigned again and there is so much mess you can't tell what's what. Hope I didn't confuse too much. Good luck on cleaning everything up. ChrisB
Man, that is a perfect explanation. Thanks you guys for all that information. I am really glad that I found this site..no waiting days for a reply when you have a question. So if an account with the same amount shows up on my credit report with a CA's name on it, the OC can have that account listed on my report but with a $0 balance otherwise he's committing an FCRA error? I think I understand it now. But what if the debt was assigned? then could the OC report a balance? Seems to me the thing to do would be to find out if the debt was assigned or sold..and who would tell me that if I asked? who would I even ask? the CA or the OC?
Now what starts the SOL? the date that the account was opened or the contract was signed...or the date of the initial delinquency?
So if there was a credit card account that delinquent in 3/1997 and they didn't assign it to a CA until 2000, then it is past the 3yr SOL so then they cannot collect on it right?
No, the reporting date (the seven year period) is determined by the date on which it went delinquent and was never again brought current. But the SOL can be restarted by a payment, sometimes even by an agreement to pay. This is one of the hardest things, learning the difference between the reporting period and the Statute of Limitations. You may want to search the board and read a bit more about the SOL.
That's what I mean. They can report it as a delinquent account but they cannot collect on it. If it is out of SOL they cannot collect on it but they can place it on my credit report for 7yrs. I will do more reading as you suggest. Thanks for the schooling!
If it's been 3 years or more since you last paid on it, it will be past the SOL. They can still try to collect, can even sue you. If they do, you will have to go to court and assert the SOL as a defense. But if you've paid on it, you've restarted the SOL. Sometimes agreements can. That's one reason you should never talk to a CA. Have you made any payments or agreements to pay on this?
Also, if an account is "closed" but charged off can it still be reporting a balance? I know that charged off accounts can if they have not been sold, but if it's been closed can it show a balance?
Yes, just because it's closed doesn't mean there can't be a balance. When I was having all my problems, there were several credit cards that were closed by credit grantor. I was still paying them OK, they just thought I had too much credit and too many delinquencies, so they closed them. I still paid if off as agreed, but each month it would report the current balance with the comment "account closed by credit grantor."
