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SOL - Correct me if I'm wrong...


KDogg
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The SOL begins at the date of last activity of the OC, correct? Also, does the same apply even when an account is charged off and/or sold to a CA, even when the OC has nothing to do with the account any longer? I have several baddies on my CR, some of which are rather old. And if I've read correctly the SOL in West Virginia is five years, so some of these could probably go away due to SOL expiration.

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SOL is a state specific issue and it's not easy to summarize in one sentence.

Generally SOL begins to run at the date of breach. If payment was due January 30th 2003 and you failed to pay, SOL starts January 30th (or 31st) 2003.

Generally, nothing changes that date. Now if you become current 2 months later and the account stays open, a new SOL would start to run if you became delinquent again.

Written acknowledgments of the debt (depends on the state) will create a new point of departure for SOL. For instance, in Georgia, paying a debt by check that contains an acct# or something that identifies the account resets the SOL.

Only your actions have the potential to change the SOL (such as partial payments, written acknowledgments, evading service, moving to another state). Selling the debt to a JDB doesn't affect anything.

State SOL has nothing to do with the federal time limit of reporting (TLR) for your credit report. Just because you can't be sued for the debt doesn't mean it still isn't eligible to be reported. In most cases they can still take other collection measures as well.

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Thanks for the replies, they clear everything up. I mean, I know a bit of legal stuff, but this credit terminology confuses the daylights outta me. It's good to know which is which and what applies where, so now I'm just about ready to start the dirty work.

Thanks again!

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Minor correction - the reporting period is 7 years PLUS 180 days beginning with the date of first delinquency that immediately precedes placement for collections (internal or external) and/or charge-off.

okay now I am confused.. so you are saying that it does NOT drop off after seven years of DOLA?

for example on my equifax most dont have a date of first delinquency.. now I found one that the DOLA is Feb of 2003.. last payment is Sept of 2003 but it reports first delinquincy is jan of 2004 (how can that be??) also this is the ONLY one out of 20 accounts that has this the rest are blank as to date of first delinquency.. can you shed some light on this.. I was under the impression it fell off seven years from DOLA

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They must report a final delinquency date no later than 180 days from the time the account started going into default.

So for instance:

You owe January 1, 2003.

You fail to pay.

They charge off July 1, 2003. (180 days later).

7 year clock starts July 1, 2003.

Now, if they decided to charge it off February 1, 2003 the 7 year clock starts then. The 180 day language is there for creditors who used to hold accounts forever without reporting a charge-off date so it would stay on your report longer. Now the CRAs must start the 7 year clock no later than 180 days from the date of first delinquency.

So at most it will be on your report 7.5 years, but it can be there a shorter time.

In practice, it seems that some CRAs start the 7 year clock at the delinquency date anyway and not the charge-off date.

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