topic SOL and Score? in Understanding FICO® Scoring

SOL and Score?

EaglesFan2006 — Wed, 01 Apr 2009 15:23:26 GMT

I see a lot of people asking about if certain accounts are past SOL when requesting more details....what does SOL have to do with scoring?

Re: SOL and Score?

llecs — Wed, 01 Apr 2009 17:05:07 GMT

EaglesFan2006 wrote:
I see a lot of people asking about if certain accounts are past SOL when requesting more details....what does SOL have to do with scoring?

Has nothing to do with scoring. We will often ask if a baddie is past SOL prior to giving advice on fixing baddies. DVing, disputing, PFDing, etc. a debt prior to the expiration of SOL could lead to a lawsuit.

Re: SOL and Score?

txjohn — Thu, 02 Apr 2009 12:30:00 GMT

SOL (statute of limitations) is a legal time limit that a creditor has the ability to enforce a debt through the courts. Once the SOL has expired, they cannot sue, thus cannot garnish wages.

However, this does not extinguish the debt and it can continue to report on your credit (till required to be removed by FCRA) and they may continue to attempt to collect the debt through non-judicial measures indefinitely.

Thus your score is not affected by SOL. Your legal liabilities are limited after. You have more leverage to negotiate debts after SOL since they cannot use the courts to collect.

Re: SOL and Score?

RobertEG — Fri, 03 Apr 2009 23:18:44 GMT

Good posts.

Being past your state/fed SOL only relives your from the threat of an enforceable lawsuit for collection.

If you borrowed $1000 from me, and did not repay it, expiration of the legal SOL would not quench my distaste.

Creditors are usually corporations, so it is a bit easier in the mind of some to stiff them.

But a debt owed is a debt owed. Having it remain in your CR is only right, even if they can no longer legally collect.