SOL

[wert]

I'm so damn confused from different boards and different answers:

SOL: it starts from date of last activity

charge off: is 180 days from date of last activity but has nothing to do with SOL

Right or Wrong on both statements??

[bingo]

The SOL will start when you first breached your contact. 180 days after you first defaulted, will be the approximate chargeoff date. The reason it's important is many people just figure the chargeoff date is when they stopped paying and that's not correct. On an SOL issue the more the SOL has tolled the better. Just trying to show that the debt may well be older than you or the CA or, the judge thinks if they just look at a credit report.

[nolo]

Hi all,

I just discovered this board and I can't tell you how impressed I am. What a wealth of information! Awesome.

Anyway, I am also confused about SOL. My understanding according to my own research is:

The SOL starts counting at 180 days after the first delinquency occurs on the debt and continues to run as long as the account does not become current. The SOL continues to run even if partial payments are made, as long as the account remains delinquent. Is this correct?

It is also my understanding that charge offs have nothing to do with the SOL of a given debt. A charge off could happen at any time during the delinquency or not at all. Is this correct?

Thanks in advance for any help.

[bingo]

A chargeoff HAS to happen at some point if you're dealing with a financial institution per the FDIC.

http://www.fdic.gov/regulations/laws/rules/5000-1000.html

[nolo]

Thanks for the link bingo, interesting reading. So, most (if not all) major banks would indeed charge off a debt after 180 days of uninterrupted delinquency. That's good to know.

However, this still doesn't have anything to do with the SOL on the deliquent debt, correct? That is to say, the charge off date is not NECESSARILY the true 180 day SOL starting point.

[Edit by nolo on Thursday, April 17, 2003 @ 09:12 AM]

[bingo]

The SOL will begin when you default and never get caught up.

THe other thing that is important is, a negative item stays on your credit report essentially 7.5 years from first default or, 7 years from chargeoff. So, it's important to know when you first defaulted.

http://www.ftc.gov/os/statutes/fcra/johnson.htm

[nolo]

Thanks bingo. I really appreciate the help.