SOL HELP!!!

[AvaMommy]

Have a question. In 2008, a friend opened a credit card acct  with deferred payment for a year or 2. They came up on some hard times and couldn't pay it. It is obviously still on his credit report; both the CA and OC is reporting. It it too high to PFD. On his credit report it looks like the DOFD is July 2010. What would his SOL for Maryland be? I told him he doesn't want to awaken sleeping GIANTS but if it is 2010 then I suggested laying low till 2013...advice?

[chryanna]

That may not be enough time. You'll have to look up the statute of limitations applicable to whatever state you're in. This state resources thread is super-helpful for that: 

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/State-Resources/td-p/376615

[AvaMommy]

Hi, thank you for the thread, but I was only able to find out if the CA was licensed I do believe to collect in Maryand. I know in Maryland for cc debt the SOL is 3yrs. This is why I assumed 2013 since his DOFD states 2010. Am I wrong? 

[llecs]

If the SOL for open accounts is 3 yrs in MD and your friend doesn't have 100% saved to as to avoid a judgment, then definitely have him/her lay low for the next year. Doing anything like calling them, writing letters, disputing, mailing in payments, etc. can increase the odds of being sued before then. I'd save up to have 100% set aside in savings and then offer a PFD at that point (they can always offer a settlement of much less once the $$$$ is saved).

BTW, in some states, SOL can be reset. YMMV based on the state, but a payment, an acknowledgment of the debt, or a promise to pay can reset SOL.

ETA....if the CA is reporting, then the CA owns the debt and the OC is nothing at this point.

[AvaMommy]

Ok thanks llecs..but what if the balance from the OC is reporting as well as the CA. I read in forumthat hat if the OC is reporting a balance they still have it in their hands as well. How true is that?

[llecs]

While I'm unsure of the FCRA in this regards, it's normal for the OC to report $0 in the "current balance" field and the CA report a balance instead. Both can report but both shouldn't be reporting a balance. If both are reporting a current balance, and if SOL is over, then call the OC to see whether or not they sold it. I had it happen early in my repair days. I had an OC and CA report the same balance. Asked the OC to updating the reporting and they deleted, to my surprise.