SOL IN GA--BEGGING FOR HELP!

[rom828]

PLEASE!

Read threads in Credit 101 on SOL, DOLA etc...and I understand(I think) about legal and reporting SOL..

Can anybody help me with Georgia's   SOL?!  I know for credit cards it's 4 years, but 4 years from what date?

And isn't it four years plus 120-180 days?  I've searched the internet but can't find a difinitive answer.

I read something in the 101 threads about date accts suspended/closed by creditor..prior to charge off.

I have Cap1 that was delinquent few times in 2002, and in rec'd letter March '03 advising temporarily suspended until pyts brought current, (which never happended).  Called and tried to close card & set up payment plan, to no avail (very rude CSR when I called--told me closing card wouldnt help-would still owe, etc)  so I just kept trying to pay but was continuously behind as they added late and over limit fees of $29 each. (CL was $200..now at $1900 strictly with fees and interest--never charged purchases  above  CL....late fee kicked it over CL and the rest is history!!)

Made last pyt August 04.  Acct was charged off May 05.  Received several collection letters after that date on Cap1 letterhead, then rec'd collection letters from Alliance One, Northland Group and in the last couple of months NCO Fin Syst.  Only the Cap1 charge off shows on my credit report....no CA is reporting.

I want to get this off my back  and arrange a settlement, but want to be in best 'bargaining' position. 

Sorry this is long--I'll try to condense:

Account suspended 03-03,  last payment (made to OC) 08-04, charged off 05-05, only CO shows on CR although have rec'd CA letters from various collectors.

What would be the legal status/legal SOL of this account?

Also, seems to be various opinion on contacting OC or CA in these instances.  Either way, am I opening a can of worms to do this now?  Should I wait? This is why is need to know about SOL!!

THANK YOU FOR ANY ADVICES!!

[Anonymous]

First thing you need to track down is if GA works from DOLA or DOFD - a few states go by DOFD if never brough current or CL reduced or account suspended  (VA being one of them).  If DOLA  -sol would be the end of August 2008 (you made payemts and kept the activity going). 

Easiest way to find out for sure if DOLA or DOFD is call or email your state AG or even better the Consumer Protection Agency of your state.They WILL KNOW for sure.  ANother question to ask if if they can 'legally' keep adding fees to the account after it was closed/charged off.

For this much money (and assuming you can't pay it) - I would hibernate until SOL runs.  ADVISORY: have heard Cap1 likes to file suit just before SOL expires (their legal right so no foul - sneaky but not illegal)

[guiness56]

Georgia Statutes of Limitation

Breach of any contract for sale: 4 years, (OCGA 11-2- 725) NOTE: Parties may reduce limitation to not less than one year, but not extend it. A cause of action accrues when the breach occurs, regardless of the aggrieved party's lack of knowledge of the breach.

Contract, including breach of warranty or indemnity: 4 years, (OCGA 11- 22A-506) NOTE: The parties may reduce the period to one year.

Written contract: 6 years from when it becomes due and payable and the six (6) year period runs from the date of last payment. (OCGA 9-3-24)

Open account; implied promise or undertaking: 4 years, (OCGA 9-3-25). NOTE: Payment, unaccompanied by a writing acknowledging the debt, does not stop the statute. Therefore, the statutory period runs from the date of default, not the date of last payment.

Bonds or other instruments under seal, 20 years, (OCGA 9-3-23) NOTE: No instrument is considered under seal unless it’s stated in the body of the instrument.

[Anonymous]

There is your answer - you are in a DOFD state - so from the date of the last default that the account was never brought current from.

[rom828]

Thank you both so much for such quick response!

And Guinness, this:

NOTE: Payment, unaccompanied by a writing acknowledging the debt, does not stop the statute. Therefore, the statutory period runs from the date of default, not the date of last payment.   

is wonderful news!!  I've looked up GA statute on line but I promise you, I never saw this!!

So, if I can be a little more trouble, in my situation, even though I made last pyt in Aug 04, (and it was "unaccompanied by writing--I always just paid on line),  since my acct was suspended March '03 (acct balance $467)  and I was at that time 60 days late and never caught up (due to fees added,  pyts weren't ever adequate to bring current),  is this account  now beyond the 4 yr  legal SOL ?!  All statements after that '03 letter continue to show late fees and delinquent status, though in '04 they did credit me for a few late fees...still showed late fees  but then showed 'late fee credit' with note this was done to help more of my payment apply to outstanding balance, but statement also showed I was still 90 days past due when I made 08-04 pyt.

If I don't have to worry about being sued, doesn't that put me in better position to contact Cap1 for settlement?  And what about NCO? Can I write them a "beyond SOL" letter? Last letter from NCO  (1-5-08) shows 26.24% interest on $1081 princicipal (charge off amt) so owe $1909.

I've worked so hard these last few years to get accounts paid and credit back on track. Cap1 at the time was the only one unwilling to work with me. Others paid off in '05, and fico simulator shows me that getting my utilization down (now at 70%;  I know it includes Cap 1...but I'm going to pay my 2 charge cards down to 10% over the next 6 months) will get my score in the 682-712 range ( now 629) and 12-18 months in the 752 range (WooHoo!!)

I have a moral obligation to pay this debt, though I dont feel as morally responsible for ususry interest!! I never charged more that my $200 CL!

Any more thoughts and advices on this will be most humbly and gratefully appreciated!!

[guiness56]

I am not a credit guru by any means, however, I believe that your SOL would have ended in Mar 07.  As far as anything else I am not too sure.  I do know that an almost 25% interest rate is outrageous.

[rom828]

You may not see yourself as a 'guru', but you've sure been a world of help to me!!

Sure sounds like March 07 would be it, unless there's some catch to the "unaccompanied by writing acknowledging the debt".  Not sure what that means exactly.  Will have to try to research more.

I agree the interest is ridiculous!  That's why I don't want to pay it and work out a settlement instead.

any thoughts on that?!

[guiness56]

I would send them a debt verification letter.  There are laws, both FCRA and State, that says how much interest can be charged and how they come up with the amount.