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Need clarification when Statute of Limitations is Over


Sunflower1999
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I just need clarification from an article posted on this website regarding how to calculate when Statute of Limitations is over.

 

The article states "There are various opinions on when the SOL starts:

1.  The first time you fail to make a payment on your account.

2.  The credit card company sends you a demand letter for the full amount."

 

I understand how to calculate item #1, but my question is with item #2.

 

The article goes on to say that "Some credit agreements include an acceleration clause which must be invoked before a creditor has a cause of action.  The acceleration clause could be activated by the creditor sending you a demand for payment in full by a certain date.  In these instances, you must fail to pay the creditor after it has invoked the acceleration clause before the creditor has a cause of action, and the statute of limitations starts to run.  You need to become familiar with the terms and conditions of your specific agreement to know for sure which event triggers a cause of action and thus, begins the running of the statute of limitations." 

 

I do not have a copy of my credit agreement.  How do I find out if my credit agreement has an Acceleration clause?

 

Just for info, I am dealing with:

Capital One - "Acct paid in Full-was a Charge Off - Sold to Asset Acceptance" - stopped paying on Oct 19, 2009

Credit First Natl Assoc - "Charged Off" - stopped paying on Nov 3, 2009

Jefferson Capital System - "In Collection - OC was Emerge" - stopped paying on Oct 19, 2009

 

I am in California, SOL is 4 yrs.

 

Any help is greatly appreciated!

 

 

 

 

 

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The 2 that had payments made in October. 09, the sol ran and is done as of nov. 13. The other done as of dec. 13.

If they filed suit before that, then it is tolled.

If you left the state, it was tolled.

California the sol started on date of default, so the first 2 your payment was due in nov, you didn't make it, so that is the date that starts the sol, assuming you didn't make any other payments.

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Thanks Clydesmom,

 

I want to clear my CR so I can apply for a mortgage, but everything I read states to make sure you know SOL is over.  As I work to clear up my CR, I don't want to open a can of worms.  So, is the Acceleration clause not something that credit card companies put into their agreements?  Is it okay to know work to clear up CR?

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Credit card agreements typically do not have acceleration clauses.  Loans do.  So if you default on a mortgage or auto loan then the lender can kick in the acceleration clause if it chooses.  This does not happen often in mortgage but in auto loans.  If the car is repossessed and there is less than 6 payments left the lender typically uses the acceleration clause to justify stating that the entire balance is due to redeem the vehicle from repo.  This is so that they are free of the loan once and for all an no longer have to deal with late payments.

 

I can tell you that Cap1 will NOT delete.  Jefferson Capital can't prove squat and should fold like a house of cards.

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