I believe I read somewhere that the month that you initially failed to make your payment, which eventually led to a charge-off, is the month in which the clock starts ticking. Is this true? I also believe that general account practices state thay after 90 days, most companies consider the account charged-off. Is this true? I have an account that charged-off on 10/95. That means that it would definitely drop off on 10/02. I could dispute this one off easy but why go through the hassle if it drops in a few months. What I'm wondering is if the clock starts the month that initiated the charge-off, that would mean that the account should drop off now. Am I correct or am I completely off? Any help is appreciated.
The timeline for the chargeoff begins immediately when a payment is missed. The actual chargeoff occurs 180 days thereafter. Charge off is an accounting term. It doesn't really affect you and the date of the charge off can also affect this. i believe this rule pertains to those debts charged off after December 1997--different rules apply before that time. Your SOL--depending on your state or the state of the original creditor--should (take a look at your laws but most are uniform) begin not at chargeoff date but date of missed payment. Sometimes you can use the data on the credit reports. Sometimes it's corrupt. This is especially true if a CA reages or an idiot worker puts the wrong date in. Lucky for me I saved early credit reports done almost 5 years ago showing the original dola. It has since been amended by a CA. Once I am past the SOL I plan on bringing a lawsuit if I cannot get it verified by the CRA or validated by the CA. You can find most of the rules within the FCRA and the Debt Collectors Act--most of the sections that are on target begin at Section 611. The nuances you will find on this board are even better than reading the act. But know the act inside and out. Most don't (I didn't and have spent the last several days plotting out time lines and learning things that can save your butt).
