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Credit Card SOL

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Anonymous
Not applicable

Credit Card SOL

I know this is going to sound pretty basic, but when I read the statute for Montana regarding the statute of limitations on credit cards, I come away even more confused. The Montana law states:

 

27-2-202. Actions based on contract or other obligation. (1) The period prescribed for the commencement of an action upon any contract, obligation, or liability founded upon an instrument in writing is within 8 years.
     (2) The period prescribed for the commencement of an action upon a contract, account, or promise not founded on an instrument in writing is within 5 years.
     (3) The period prescribed for the commencement of an action upon an obligation or liability, other than a contract, account, or promise, not founded upon an instrument in writing is within 3 years.

 

So, could someone help me out here? I have an old WalMart card that was placed for collection 02/2006. The report states that it will be removed in 2013, but I can't see that reflected in the law.


Thanks for your help in advance.

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4 REPLIES 4
tbque
Valued Contributor

Re: Credit Card SOL

Montanaman, I believe you are confusing SOL with CRTP (credit reporting time period)? SOL refers ton the length of time that you can be sued for a debt and varies from state to state. CRTP is how long that the derog can be reported on your CR, which is 7.5 years from the DOLD. Hope this helps!





Message 2 of 5
tbque
Valued Contributor

Re: Credit Card SOL

Oops, meant DOFD (date of first delinquency).





Message 3 of 5
Anonymous
Not applicable

Re: Credit Card SOL

Ah yes...you are right. I was confusing the two. Thanks.

Message 4 of 5
MarineVietVet
Moderator Emeritus

Re: Credit Card SOL

 


@Anonymous wrote:

I know this is going to sound pretty basic, but when I read the statute for Montana regarding the statute of limitations on credit cards, I come away even more confused. The Montana law states:

 

27-2-202. Actions based on contract or other obligation. (1) The period prescribed for the commencement of an action upon any contract, obligation, or liability founded upon an instrument in writing is within 8 years.
     (2) The period prescribed for the commencement of an action upon a contract, account, or promise not founded on an instrument in writing is within 5 years.
     (3) The period prescribed for the commencement of an action upon an obligation or liability, other than a contract, account, or promise, not founded upon an instrument in writing is within 3 years.

 

So, could someone help me out here? I have an old WalMart card that was placed for collection 02/2006. The report states that it will be removed in 2013, but I can't see that reflected in the law.


Thanks for your help in advance.


 

I think you may be confusing SOL with CRTP (Credit Reporting Time Period).

 

Here is how and when derogs drop from you CR, and are thus no longer included in FICO scoring.

Monthly delinquencies under an OC account drop at 7 years from their individual date of delinquency. The date of first delinquency (DOFD) has nothing to do with these drop-off dates. They drop from their own individual dates. So look at each prior OC reported monthly derog date, and simply add 7 years.

If the OC subsequently reports their account as a charge off, that is a totally different and additional post to your CR. Their post as a charge-off will remain in your CR for up to 7.5 years from the DOFD on the OC account, which is the first 30-day delinquency you had on the account, and disregards any later 60/90+ delinquencies that followed. That cannot be reset.

If the OC then refers the account for collection, and a CA posts to your CR, the drop-off date of their collection reporting is the same as that of a CO. It is up to 7.5 years from the same DOFD on the OC account, and the CA cannot reset this date.

 

ETA: I got out typed. I need to be less long windedSmiley Happy

 

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