hlc2412 Posted September 6, 2004 Report Share Posted September 6, 2004 In South Carolina I understand the SOL is three years on an open account. What defines an open account? If the account is charged off or sent to a CA is it still considered open and subject to the SOL? Also does this start from the last date reported to the CRA's?Thanks in advance for help, comments. Link to comment Share on other sites More sharing options...
DocDon Posted September 6, 2004 Report Share Posted September 6, 2004 Think of an "open account" as a revolving line of credit. "Open" does not refer to the current status of the account. An "open" line of creidt only means that there is no set amount due over a scheduled period of time (as in an installment loan for a car).You pay, they let you keep charging, etc.What you're looking for is the DOLA (Date of Last Activity). This is not the date reported to the CRA's, but the date you stoppped making payments.The DOLA does not change. Many CA's and JDB's (junk debt buyers) try to re-age the account by changing the DOLA (they buy it and report is as if the debt just occurred). This is not legal. You can't change the characteristic of the original debt no matter how many times it's sold, or sent out to third-party CA's.Also, Do not confuse SOL with the 7-year reporting rule.Accounts generally go 30-60-90 days late, then you get the calls and letters from the OC, 120-160-charge off (180 days, or 210 if your billing cycle falls screwy). This is why the 7-year rule is actually 7 years plus 180 days before the info falls off your report. It sorta auto-calculates the time it takes to charge off from the time you miss your first payment.Hope that helps explain. Link to comment Share on other sites More sharing options...
hlc2412 Posted September 6, 2004 Author Report Share Posted September 6, 2004 DocDon ...Thanks for your response! This site has been a great help. Link to comment Share on other sites More sharing options...
ravenrant Posted September 13, 2004 Report Share Posted September 13, 2004 This has most likely been answered in another thread before but I have always had a difficult time getting SOL / DOLA straight in my mind. Does a settlement payment, or any payments on a CO re-set the DOLA? Thanks, I'll get this straight one of these days - Link to comment Share on other sites More sharing options...
DocDon Posted September 13, 2004 Report Share Posted September 13, 2004 In some states, making a payment re-ages the SOL, as does the agreement to pay, but in some states a new written agreement to pay must be completed to restart the SOL.There is a list of states where payment does not restart the SOL (admin posted it a while back I believe - I'm still looking for it). There was discussion recently that Texas is one of these states.Illinois also has it's own goofy interpretation that a credit card has a 10-year SOL (written contract), while a store charge card has a 5-year SOL (open ended account). Link to comment Share on other sites More sharing options...
ravenrant Posted September 13, 2004 Report Share Posted September 13, 2004 Thanks, Doc - that's bad news for those of us in Illinois. I always thought it was five years for all credit card debt. Back in '99 we got some "help" settling some debts for less than the full amount and were dummies in that we did not know to get releases for the balances. We did get 1099-Cs for a couple which, as I understand it, ends the obligation. (Hope I'm not wrong about this, too, lol) I thought I would be able to stop sweating this year about the couple that didn't send us 1099-Cs but, according to your post, I still have another five years to worry about them. Link to comment Share on other sites More sharing options...
DocDon Posted September 13, 2004 Report Share Posted September 13, 2004 You can thank the Appellate Court of Illinois, Fourth District for that. But like with any law, it's always open for a new way to argue, so who knows what can happen in the future - especially considering they admit "there is little law on this subject and it is not entirely clear which statute of limitations should apply to a credit card debt". They do go on to state what I posted about credit card vs. charge cards though. Link to comment Share on other sites More sharing options...
choosymom Posted October 1, 2004 Report Share Posted October 1, 2004 Here's the post w/ list of states where pmt doesn't reset the SOL:http://debt-consolidation-credit-repair-service.com/phpBB2/viewtopic.php?t=11660 Link to comment Share on other sites More sharing options...
Recommended Posts