SOL

[Anonymous]

I feel dumb asking this question. I read the stickies and the more info. I am a little confused, and want to verify this. Is SOL from the DOFD? I know the 7 yr drop-off date is from the DOFD, but I wasn't sure if the SOL is from the same date.

Thanks in advance!

[RobertEG]

SOL and credit reporting are unrelated.  SOL is a legal issue that defines your right, if sued, to raise an affirmative defense in court.

You have various expiration dates.  For credit reporting, and credit reporting only, monthly derogs drop after 7 years from thier individual date of delinquency.  DOFD does not matter for these delinquencies.  DOFD only enters into the picture for charge-offs (CO) by the OC, or collections reported by a debt collector.  For COs and CAs,they drop at no later than 7 1/2 years after the DOFD on the OC account.

Now, for the separate issue of SOL. That is governed by state law. 

Each state has its own civil code, and set different dates for setting the running of the SOL period, and for its length.  Most states initially set the running of the SOL from the date of "first cause of action," which means, in English, the first time you went delinquent, and thus they were able to bring action for default.

Yes, in many instances, that might be the same as your DOFD.  However, many state SOL statutes provide for reset of the SOL commencement date for such subsequent actions as new purchases, payments, offers to pay, etc.  You can only tell the date of commencement of your SOL by reading the debt collection statute of limitations for your individual state.

Never assume SOL runs from any DOFD.

[Anonymous]

I know my state's SOL is 3 years. The question I was asking is from what date to you figure out  an individual SOL (3yrs in my case). Which looks to be date of first deliquency as long as no new payments, actions, etc. have been made. However, this too is dependant upon your individual state's SOL.

Thanks!

[MarineVietVet]

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@Anonymous wrote:

I know my state's SOL is 3 years. The question I was asking is from what date to you figure out  an individual SOL (3yrs in my case). Which looks to be date of first deliquency as long as no new payments, actions, etc. have been made. However, this too is dependant upon your individual state's SOL.

Thanks!

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I'm confused as to what you're asking. I thought Robert answered you in several different ways.

The only way to be certain about the particulars of the SOL in your state is to look them up.

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[guiness56]

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@Anonymous wrote:

I know my state's SOL is 3 years. The question I was asking is from what date to you figure out  an individual SOL (3yrs in my case). Which looks to be date of first deliquency as long as no new payments, actions, etc. have been made. However, this too is dependant upon your individual state's SOL.

Thanks!

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It would depend on how your state statutes are worded.  It could be the same as the DoFD, which is when you first became late and never caught up.

In my state if you are due on 1 July 2010 but did not pay, on 1 Aug 2010 you would be 30 days late.  So 1 Aug would be the start of our SOL.  Your states SOL can change but the DoFD cannot unless you completely get the account current before being late again.

[RobertEG]

Guiness' example raises a point that may lead to confusion about SOL and DOFD.

In the example proposed, the payment was due on 1/7/2010.

So the account was not paid by that time, and was thus  in default as of 1/8/2010.

But 30-day lates are only reported once they have matured to 30-days past the due date.

So no reporting of a 30-day late would be made to the CRA until after 2/7/2010.

But cause of action actually occured as of 1/8/2010.  So that would probably be your date for legal computation of SOL, not the first reported 30-day late to the CRA.

Yeah, I know,  it is just a month difference, but even one day in civil litigation can make or break.

Just know the difference, if days matter.

[guiness56]

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@RobertEG wrote:

Guiness' example raises a point that may lead to confusion about SOL and DOFD.

In the example proposed, the payment was due on 1/7/2010.

So the account was not paid by that time, and was thus  in default as of 1/8/2010.

But 30-day lates are only reported once they have matured to 30-days past the due date.

So no reporting of a 30-day late would be made to the CRA until after 2/7/2010.

But cause of action actually occured as of 1/8/2010.  So that would probably be your date for legal computation of SOL, not the first reported 30-day late to the CRA.

Yeah, I know,  it is just a month difference, but even one day in civil litigation can make or break.

Just know the difference, if days matter.

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Where are you getting that date?  Did you mean 2/8/2010?

[Anonymous]

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@Anonymous wrote:

I feel dumb asking this question. I read the stickies and the more info. I am a little confused, and want to verify this. Is SOL from the DOFD? I know the 7 yr drop-off date is from the DOFD, but I wasn't sure if the SOL is from the same date.

Thanks in advance!

---

It depends on the type of debt you are dealing with and the wording of your contract.  For general credit card debt, the SOL runs from when the creditor first had a cause of action against you -- usually the day after your missed payment was due.

However, if you are dealing with a debt that contains an acceleration clause, the SOL may very well not start to run until months after your payment default.