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First of all, great site and tons of helpful info thanks so much!

Recently found some things on my credit I am disputing. These deliquent accounts are from 1998. One of them is a CA currently showing charge off on my credit. First Question: Does the 7 year rule apply from the first day the account becomes deliquent with the OC or 180 days from that date or when it is charged off? Once it has passed the 7 year mark they cannot report this to the Big 3 correct? (would I have legal rights if they continue to do so)?

Second Question: I read about the SOL in Texas, (which I reside in), and it is 4 years for a written contract. So therefore the original creditor that charged off in 1998 and assigned to a CA in 1999 has passed the SOL? The CA's address is in Georgia(6 yrs). The OC was in Delaware(3 yrs) at time of account opened. Which state's SOL do I use? After the SOL has expired, can I still be sued by this CA? I have read the FDCPA and the FCRA and the legal mumbo jumbo wording confuses me.

Third question, when the Credit bureau confirms the account with the CA, what is the best route to take with the CA? From what I have read here and other research, it seems that I should ask this CA to prove that the debt belongs to me by them submitting proof of my original signature on a contract with the OC. I am worried about doing this because I do not want to get sued, so that is why I asked the ? about the SOL, since that would be my best defense. If SOL has passed and they cannot submit written proof of the original contract, then I can take legal action against them if they do not ceast and desist and remove the negative item from my credit report?

Fourth question: I do not understand the concept of the CA being bonded to collect in the state of Texas? Does this apply to out of state CA's such as the one in Georgia? If they are not bonded, does that mean they cannot legally pursue this debt with me? Do I need to ask them if they are bonded to collect in the state of Texas when I ask them to verify the debt? Also, can I legally dispute this debt since it has been so long and not the thirty days from when they sent me a notice a few years ago notifying me of the debt? Sorry for so many questions, any help would be appreciated and thank you for your time in reading my meanderings. XhelpX

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1. I will let someone else answer this one but I think that it is 7 years from date of last activity (DOLA). That would be 7 years from last payment.

2. You go by the state that you are in (Texas). You can be sued after the SOL as anyone can sue you for just about anything, but they will not win. Here is your defense.

Texas Civil Practices and Remedies Code

Chapter 16

Subchapter 16.004 Four year limitation period

(a)A person must bring suit on the following actions not later than four years after the day the cause of action accrues:

(3) debt

3. Send debt validation letter to the collection agency. here is the Texas law.

Texas Finance Code Chapter 392 Debt Collection




(a) An individual who disputes the accuracy of an item that is in a third-party debt collector's or credit bureau's file on the individual and that relates to a debt being collected by the third-party debt collector may notify in writing the third-party debt collector of the inaccuracy. The third-party debt collector shall make a written record of the dispute. If the third-party debt collector does not report information related to the dispute to a credit bureau, the third-party debt collector shall cease collection efforts until an investigation of the dispute described by Subsections (B)-(e) determines the accurate amount of the debt, if any. If the third-party debt collector reports information related to the dispute to a credit bureau, the reporting third-party debt collector shall initiate an investigation of the dispute described by Subsections (B)-(e) and shall cease collection efforts until the investigation determines the accurate amount of the debt, if any.

This section does not affect the application of Chapter 20, Business & Commerce Code, to a third-party debt collector subject to that chapter.

(B) Not later than the 30th day after the date a notice of inaccuracy is received, a third-party debt collector who initiates an investigation shall send a written statement to the individual:

(1) denying the inaccuracy;

(2) admitting the inaccuracy; or

(3) stating that the third-party debt collector has not had sufficient time to complete an investigation of the inaccuracy.

© If the third-party debt collector admits that the item is inaccurate under Subsection (B), the third-party debt collector shall:

(1) not later than the fifth business day after the date of the admission, correct the item in the relevant file; and

(2) Immediately cease collection efforts related to the portion of the debt that was found to be inaccurate and on correction of the item send, to each person who has previously received a report from the third-party debt collector containing the inaccurate information, notice of the inaccuracy and a copy of an accurate report.

4. They must be bonded in Texas.

In order to verify bond requirements in Texas:

Verification of Bond or Complaints (By Telephone or Email, no online)

Nina Weston at (512) 463-6906, or on the internet at


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Thank you Goodmank for your response! I am about to check out that bond link and look up this CA to deteremine if they are bonded. The reason I had asked about the 7 year rule was that I had read somewhere during my research that the 7 years starts on the day that the account is first deliquent. At least I remember reading that and I could not find the website again to go back and recheck the source. Then another site said it was the day it is deliquent plus 180 days after that. That is why I am confused. I will have to dig deeper and let everyone know here unless someone already knows this and can post it. I am one of those people that wants her ducks in a row and all her eggs counted before I proceed with contesting this debt. I do not like surprises, espicially from a CA. Thank you again for your time and patience! :D

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The 7 year reporting period is 7 years PLUS 180 days starting with the first delinquency that immediately preceeds the charge-off. In most cases, that means 7 years from the charge-off date, but some creditors will charge off at 120 or 150 days rather than wait until 180 days, so you must use the 1st delinquency date to figure the reporting period.

The TX SOL is figured in the same way - 4 years from the first delinquency and the account is never again brought current. If a CA is bugging you on an out-of-statute debt, send them a cease and desist letter telling them to go away forever, the debt is time-barred per TX statute. It doesn't mean they can't sue you, they can always try, but it does mean that you've got an absolute defense against them and can get the case thrown out of court.

If the account went delinquent in 1998, then it will fall off your reports next year (unless it was late 98).

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Thanks LadynRed for that clarification. On my credit reports it does not give the date of the actual charge off, only when the account started deliquency. It lists the first late month as of May 1998. Every month after that, it is still listed as late, however I never made any catch up payments after May 1998. I guess it would be safe to assume that 180 days after that is the charge off. Basically October or November of next year it should fit the 7 year criteria. Thanks again for your time and patience. :wink:

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