Credit Cards Center Credit cards from our partners
Reply
New Member
Posts: 3
Registered: ‎02-06-2013
0

Statute of limitations - Needing help with the details

[ Edited ]

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 

Moderator
Posts: 13,897
Registered: ‎04-15-2011
0

Re: Statute of limitations - Needing help with the details


blackbird79 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 


 

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
Valued Contributor
Posts: 2,424
Registered: ‎03-15-2012
0

Re: Statute of limitations - Needing help with the details

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.
New Member
Posts: 3
Registered: ‎02-06-2013
0

Re: Statute of limitations - Needing help with the details

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!

New Member
Posts: 3
Registered: ‎02-06-2013
0

Re: Statute of limitations - Needing help with the details

"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?

Epic Contributor
Posts: 21,574
Registered: ‎03-19-2007
0

Re: Statute of limitations - Needing help with the details

[ Edited ]

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.

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.