Collection agency attempting to put item on credit report that out of SOL

[Anonymous]

whats is a Sol and how do i find out what laws cover me in the state of texas, i defaulted on a credit card i opened in 2000 and the CA has it on my CS. From what i read it should not be on my fico score anymore, am i right?

[Anonymous]

SOL (Statute of Limitations) is the time period that a State allows you to bring a lawsuit.  It varies depending on the type of lawsuit (i.e. breach of contract, negligence, property disputes, etc).  For example, in California you have 4 years to bring a lawsuit against someone who breaches (defaults) on a written agreement.

The SOL has nothing to do with your credit report.  CRA's are governed by the Fair Credit Reporting Act, which set forth time periods for derogatory information to remain on your credit report.

One final note.  The SOL, and even derogatory information on your credit report, begin to run on the date that you allegedly default, not the date you open the account.

Here is a link for Texas SOL

http://www.statuteoflimitations.net/texas_statute_of_limitations.htm

Message Edited by illtakecreditforthat on 06-18-2009 11:24 PM

[Itsmeagain]

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@MattH wrote:

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But in some States it is illegal for the creditor to file a suit if they knew or should have known the debt was beyond SOL.

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Matt, I was under the impression that this is covered in 15 USC 1692e § 807 - A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:

 § 807(5) - The threat to take any action that cannot legally be taken or that is not intended to
be taken.

[Anonymous]

thank you, will look into it

[Anonymous]

also does it show anywhere with transunion or equifax, when negative reports will be dropped.

[MattH]

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@Itsmeagain wrote:

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@MattH wrote:

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But in some States it is illegal for the creditor to file a suit if they knew or should have known the debt was beyond SOL.

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Matt, I was under the impression that this is covered in 15 USC 1692e § 807 - A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:

 § 807(5) - The threat to take any action that cannot legally be taken or that is not intended to
be taken.

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But in some States it is legal to file a suit even if the debt is beyond SOL.  If the creditor appears and invokes SOL they lose, but they may file hoping the creditor fails to show up.  There was a news item recently about a process service company in New York State getting in big trouble for claiming they had served people when they had not.