Statute of limitations - Needing help with the details

[Anonymous]

Hello all. Been lurking the forums for years and finally decided to get actively involved as there seems to be an abundance of great info in regards to all aspects of credit and how it works. My first question is:

1. How does the SOL on a collection/derogatory account work exactly? I live in IL and the SOL is 7yrs. Say I have a collection that is only 5yrs old , but that collection reports 30 day lates that are more than 7yrs old. Does this mean that I can have any info that account more than 7yrs old removed? So in other words, if I have late reporting as "03/04 - 30" on an account that is still open, can I have that late removed without deleting the account itself?

2. Does a collection agency have the legal right to report on my credit if the OC's info has fallen off due to the SOL expiring?

3. If the SOL expires with the OC, does this mean that collection company that now collects the debt cannot report the pertaining debt anymore as well? Or does this mean that the CO has it's own new SOL.

Any help on this tpoic is much appreciated! Great to be on board and I hope I learn as much as I can 

[Shogun]

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@Anonymous wrote:

Hello all. Been lurking the forums for years and finally decided to get actively involved as there seems to be an abundance of great info in regards to all aspects of credit and how it works. My first question is:

1. How does the SOL on a collection/derogatory account work exactly? I live in IL and the SOL is 7yrs. Say I have a collection that is only 5yrs old , but that collection reports 30 day lates that are more than 7yrs old. Does this mean that I can have any info that account more than 7yrs old removed? So in other words, if I have late reporting as "03/04 - 30" on an account that is still open, can I have that late removed without deleting the account itself?

 Lates fall off 7 years from the date they occurred.  That's the rule on those.

2. Does a collection agency have the legal right to report on my credit if the OC's info has fallen off due to the SOL expiring?

 The OC would not fall off due to the SOL expiring, it would fall off because the CRTP has expired.  If this happens, no, the CA must match the OC's DOFD which sets the clock.  The DOFD is set when the account goes delinquent and was not brought back current.

3. If the SOL expires with the OC, does this mean that collection company that now collects the debt cannot report the pertaining debt anymore as well? Or does this mean that the CO has it's own new SOL.

 You are confusing the SOL with the CRTP.  The SOL stipulates how long you can be sued for a debt, the CRTP means how long it can be reported on your CR.  A CA cannot change the DOFD, it must match the OC's.

Any help on this tpoic is much appreciated! Great to be on board and I hope I learn as much as I can 

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[Burned2manybridgesB4]

CRTP....fall off time SOL....sue/litigation timeframe Also, credit cards fall into the five year window from DOFD, per an Illinois Appellate court ruling against MCM.

[Anonymous]

How do I find the CRTP in my state? So does this mean if the collector places a judgement on me, I can use the OC's date for the SOL for time period of getting sued? DOFD = date of default?

Thanks for the responses guys!

[Anonymous]

"CRTP....fall off time SOL....sue/litigation timeframe Also, credit cards fall into the five year window from DOFD, per an Illinois Appellate court ruling against MCM."

Can you elaborate on this 5yr window period? Are you saying that the reporting period is only 5yrs in IL for CC debt?

[RobertEG]

As stated, credit report exclusion periods and SOL periods are totally separate, and unrelated.  Expiration of an SOL on the debt has zero relevance to credit reporting.

Credit report exclusion periods are imposed on the CRAs, not the party reporting the information.  Expiration of a credit report exclusion period means the CRA can no longer include that individual item in your credit report.  It is not a bar against credit reporting by a debt collector.  If a party does report information that is excluded from your credit report, the CRA cannot post it in your credit report, and the consumer, unless they contact the CRA, will never know ot its existence.

For a collection, the CRA must exclude after 7 years plus 180 days from the DOFD on the OC account.

Expiration of that credit report exclusion period would only apply to the OC if they had reported a charge-off on their account. 

Any other information reported by the OC would have its own exclusion period based on the type and date of the reported adverse item.  Since most monthly deliquencies occur prior to a charge-off, and have their exclusion period of 7 years from their date of occurence, by the time a charge-off is excluded, the prior monthly delinquencies will usually also have become excluded.

OC accounts are not deleted and further reporting of accurate information is not precluded based on the expiration of an exclusion period for  individual  items reported on the account.