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Question About Statute of Limitations


lilacbouquet
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I am working through the info on this site and getting ready to send validation/zombie debt letters. I am writing my own letters, though, and not using the templates -- I've seen some people here say that the collection agencies are now used to getting these boilerplate letters.

My question has to do with SOL. When does the clock start running on a debt? My specific question pertains to a debt that I incurred in 2005. The tradeline on my report says the date of first delinquency is 1/2006. The SOL in that state is six years. So, if the SOL starts from the date of first delinquency, it would have been up at the end of January 2012. I just want to make sure this is correct so I don't send a letter asking them to remove the item from my report if it is not really out of the SOL. Thanks.

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You're correct about how the statute of limitations is figured. However, keep in mind the SOL for suing you has nothing to do with the time limit that something negative can stay on your report.

With that said, something that is six years old on your credit report, generally speaking, has little to no effect on your score.

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Thank you.

Maybe I am misunderstanding the section of this site on zombie debt. The debt is out of SOL, but the company's last update to my report was 12/2011 (I pulled my report in January, so it may have been updated again since then). I was going to send a zombie debt letter to see if they would remove it from my report.

I know old items have little effect on my score, but I will be applying for a mortgage in several months. I would like to have as few negative items as possible, so I am willing to spend the time and postage to send validation letters, settlement offers, etc.

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Maybe I am misunderstanding the section of this site on zombie debt.

It's like this. Negative info can stay on your credit report for about 7 years. In other words, you default today, around March 2, 2019, the negative entry can stay on your report.

Let's say the statute of limitations is six years. They can't legally sue you after March 2, 2018. However, they can report the debt as still in default.

The statute of limitations is legal (affirmative defense) argument that basically says, yeah I might owe it or even hell yes I owe it, BUT, it's past the statute of limitations so they can't legally collect.

In 30 years they can still send you a letter asking you to pay the debt. There are two states, Wisconsin and I think Mississippi, can't remember for sure, might be Minnestota, that extinguish the debt after the statute of limitations (statute of repose). Other than those two states, it's still a valid debt, they just can't make you pay it.

They can still "warn" others that you are a bad risk. In theory that is what credit reporting is for, to give a picture of your overall credit profile, not to only put on there what can legally be taken from you by judgement.

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Ah, thank you. The info and letters on this site make it sound like they are in violation of the law for reporting it after the SOL ended (the letter says something like "you are in violation of the FDCPA" due to something to do with the legal status of the debt. That's what confused me.

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Ah, thank you. The info and letters on this site make it sound like they are in violation of the law for reporting it after the SOL ended (the letter says something like "you are in violation of the FDCPA" due to something to do with the legal status of the debt. That's what confused me.

Unfortuantley, even on this great site, there is some misinformation. A lot of it is debatable, but on the issue of SOL and credit reporting, it's cut and dry.

With that said, that does not mean you can't get items removed even using a legal theory that is 100% wrong. If the debt is outside the statute of limitations to sue on, many times the other side will cave. They simply have everything to lose and nothing to gain if you decide to fight them, even with a totally flawed legal theory.

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