Statute of limitations and bad marks

[troybliss]

How does the sol help with bad marks on credit reports? example, in georgia, sol for open accounts is 4 years, judgments 7 years. does that mean that after 4 and 7 years, the debt is uncollectable, and shouldnt be on your credit report? what about charge off accounts,etc?

[jwelch47]

From what I understand they can still try to collect on the debt after four years, but they cannot win a court case against you(if your defense is SOL). SOL has nothing to do with your credit report though, it will still stay on there for seven years.

[troybliss]

Originally Posted by jwelch47

From what I understand they can still try to collect on the debt after four years, but they cannot win a court case against you(if your defense is SOL). SOL has nothing to do with your credit report though, it will still stay on there for seven years.

so, why TRAIGE out of statute entries on the report then?

[jwelch47]

They most likely aren't going to sue you because they can't win. It might be easier to try and negotiate a PFD if its out of SOL since otherwise they probably won't get paid. If you try to take on an account within SOL you might spark interest in the account again, calls might start up again, and you could run the risk of being sued.

[Trish]

jwelch is exactly right.
Anything out of your state's SOL is safer to dispute/DV/negotiate since it is considered a time barred debt. Even if they do try to take you to court, you will have an affirmative defense and it will most likely be thrown out.

[improving]

just an add on question, regarding SOL's...

If you moved out of state, is SOL where the bill of service originated? I think it is and had this answered before.

[Trish]

Originally Posted by improving

just an add on question, regarding SOL's...

If you moved out of state, is SOL where the bill of service originated? I think it is and had this answered before.

Good question..
Generally, you go by the state you currently reside in. I know that in Texas, you have to be a resident for like 6 months or a year before you can use their SOL.......and in some states they have a "borrowing statute" where you can use the SOL of the state you previously resided in.....which helps if you move to a state with a longer SOL.
You would have to check your state laws to be sure but you've raised a good point. If I can find a list of all of the states with borrowing statutes and/or stipulations, I will post it in the SOL thread.

[troybliss]

Originally Posted by Trish

jwelch is exactly right.
Anything out of your state's SOL is safer to dispute/DV/negotiate since it is considered a time barred debt. Even if they do try to take you to court, you will have an affirmative defense and it will most likely be thrown out.

ok, whats your opinion on this. find all the stuff that cannot be collected because of the statute of limitation, contact those creditors, inform them in a letter that YOU know the debt is out of sol, but you are willing to settle the debt in exchange for them removing from your reports, because something, is better than nothing.

[Trish]

Originally Posted by troybliss

ok, whats your opinion on this. find all the stuff that cannot be collected because of the statute of limitation, contact those creditors, inform them in a letter that YOU know the debt is out of sol, but you are willing to settle the debt in exchange for them removing from your reports, because something, is better than nothing.

For OCs, I think that's a fine idea if you are sure it is a legit debt with the right amounts. If you are not sure, I would suggest disputing it with the CRAs first and if it comes back verified.....then send the OC a debt verification letter. If they verify the debt, then you could try a PFD.

For CAs....blech. :p I would say dispute/DV/1 2 punch them and force them to provide proof of the debt first (or violate a law which is what they do best) before trying to negotiate anything........ I hate paying CAs and would just about rather cut my arm off first.

[Scorepro]

I have to somewhat disagree with some of these statements. Several FTC opinion letters have stated that reporting a debt to CRA is considered a collection activity and if the debt is outside SOL, you could make a case that way for getting it removed from CR. Technically, what's been said this far is true, the SOL for being sued and SOL for reporting are two different things, but depending on how u craft it, u can use the FTC opinions to make an argument for having the tradeline removed before the 7 years are up.