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When it comes to SOL on a collection.....


hendu
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Let's say a collection on our report is past it's SOL and the CA is no longer phoning nor writing letters to collect on the debt, but are still showing the account on our credit reports. We've DV'd the CA and they gave us complete valdiation. What takes precedence here?????

In the state of Indiana, the SOL is 6 years. The FCRA says the account can remain for 7 years on our reports, right? If that account is still listed by the CA, isn't that considered "continued collection activity?"

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not really sure, but what i have learned is that credit reporting and sol are two different things.

1. whatever the sol is in your state, it is still a debt and ca can still contact you unless you send them a full c&d letter.

2. usually bad debts stay on your cr 7 and one half years from the date of last activity, does not make a difference what your state sol is.

that is my understanding, if im wrong, i apologize.

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Very interesting Methuss....

so if a CA validates and they know that the debt is past SOL, they are trying to collect and hope we pay the debt and hope that we don't know the law (FDPCA)???

According to the FTC in their opinion letter "Cass" (http://www.ftc.gov/os/statutes/fdcpa/letters/cass.htm) validating a dispute constitutes continued collection activity in violation of section 1692g(B).

If a collector abandons its collection efforts it must also stop validating.

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HeartRN,

By trying to collect, do you mean list the account on our reports? They are not calling or writing letters!

A CA can still try collect after the SOL has passed, they just can't pursue legal action.
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A CA can still try collect after the SOL has passed, they just can't pursue legal action.

Perhaps the legal minds can verify this, but I had understood that some financial terrorists will still pursue legal action and if so, you need to show up in court and present your affirmative defense--the debt is SOL. End of case.

bw

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HeartRN,

By trying to collect, do you mean list the account on our reports? They are not calling or writing letters!

A CA can still try collect after the SOL has passed, they just can't pursue legal action.

SOL has nothing to do with reporting. Forget about SOL vs. 7 year reporting time. SOL is a defense which simply means that a collector cannot obtain a judgement against you in court if the debt has outlived the SOL. Bottom line, they still will and can take you to court, it is up to the debtor to bring up SOL as a defense for dismissal. CA's count on debtor's to not know about the SOL and do win quite often despite the fact that it's run.

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A CA can still try collect after the SOL has passed, they just can't pursue legal action.

Perhaps the legal minds can verify this, but I had understood that some financial terrorists will still pursue legal action and if so, you need to show up in court and present your affirmative defense--the debt is SOL. End of case.

bw

Posted within minutes of you and didn't see your post but you are absolutely correct.

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Some states prohibit collecting on SoL debts. For Wisconsin residents, for instance, it is illegal for them to even talk to you about a debt past SoL. So the rules vary by State.

The reason why the Cass letter is so important is that if you dispute a debt with a CA, the CA stops calling or making other attempts to collect, and they then verify the tradeline, then they have continued collection activity without validating. By nature of verification, such an act is willful

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It's actually a violation of the FDCPA to pursue a debt which is outside of the statute of limitations...

Falsely representing the legal status of the alleged debt (collectable) and therefore violating FDCPA 15 USC 1692e(2)(A).

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So admin,

Is "pursuing a debt", which is listing a debt on a credit report, outside of SOL is illegal?

It's actually a violation of the FDCPA to pursue a debt which is outside of the statute of limitations...

Falsely representing the legal status of the alleged debt (collectable) and therefore violating FDCPA 15 USC 1692e(2)(A).

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I believe this is technically speaking. I have had accounts remain on my report for longer than 7 years that were not supposed to be, and until I contacted the CRA, they stayed on there. They don't do their jobs as we all know! As far as the SOL goes......if listing a collection on a credit report is considered "collection activity", then technically speaking, it's illegal. I believe that is what ADMIN and I were discussing. I wonder though, if arguing "collection activity" would that stand in court?

Ok, now I'm confused. If listing a debt on a credit report is illegal after SOL has run, then why aren't these listings removed after that time instead of the 7 year reporting period? :hmmmmm:
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