Help Understanding Statute of Limitations and Credit Reporting for Old Debt (in Collections)

[Anonymous]

Here are all of the relevant facts that I can think of (let me know if I missed anything):

My girlfriend had a credit card account with Barclays. At the time of account opening, and throughout the duration of the account, she was living in Maryland. She is now living in VA (and splits time working in MD/DC/VA).

Based on her Equifax credit report:

Account Status: Charge-Off

Charge Off Amount: $2,000

Current Balance: $2,900

Date of First Delinquency (DOFD): Dec 01, 2016

Date of Last Payment (DOLP): Jun 01, 2017 - This payment did not bring her account current - it only covered a small portion of the outstanding balance

She received a mildly worded letter from a law firm in late December'19 saying that they were looking to collect the money owed. As best I can tell this account was not sold off to a collections agency...the letter from the law firm implies that they are representing Barclays so does that mean Barclays decided to retain this outstanding debt instead of selling it to a collections agency?

Further Questions:

1. In terms of statute of limitations (for the law firm suing her), which states rules apply?

2. Assuming it's VA...as best I can tell the statute of limitations is 3 years?

3A. Do we count the 3 years from the DOFD or from the DOLP?

3B. Is the statute of limitations clock re-set by her partial payment in June?

4. In terms of this falling off her credit report, do we count 7 years from DOFD or DOLP?

Thank you so much for anyone that is able to clarify these questions!

[Azuieldrago]

---

@Anonymous wrote:

Here are all of the relevant facts that I can think of (let me know if I missed anything):

My girlfriend had a credit card account with Barclays. At the time of account opening, and throughout the duration of the account, she was living in Maryland. She is now living in VA (and splits time working in MD/DC/VA).

Based on her Equifax credit report:

Account Status: Charge-Off

Charge Off Amount: $2,000

Current Balance: $2,900

Date of First Delinquency (DOFD): Dec 01, 2016

Date of Last Payment (DOLP): Jun 01, 2017 - This payment did not bring her account current - it only covered a small portion of the outstanding balance

She received a mildly worded letter from a law firm in late December'19 saying that they were looking to collect the money owed. As best I can tell this account was not sold off to a collections agency...the letter from the law firm implies that they are representing Barclays so does that mean Barclays decided to retain this outstanding debt instead of selling it to a collections agency?

Further Questions:

1. In terms of statute of limitations (for the law firm suing her), which states rules apply?    State she lives in. 

2. Assuming it's VA...as best I can tell the statute of limitations is 3 years?

3A. Do we count the 3 years from the DOFD or from the DOLP?

3B. Is the statute of limitations clock re-set by her partial payment in June?     Unfortunetly yes. 

4. In terms of this falling off her credit report, do we count 7 years from DOFD or DOLP?     DOFD

Thank you so much for anyone that is able to clarify these questions!

---

Thats all I know. 

[Anonymous]

---

@Azuieldrago wrote:

---

1. In terms of statute of limitations (for the law firm suing her), which states rules apply?    State she lives in. 

2. Assuming it's VA...as best I can tell the statute of limitations is 3 years?

3A. Do we count the 3 years from the DOFD or from the DOLP?

3B. Is the statute of limitations clock re-set by her partial payment in June?     Unfortunetly yes. 

4. In terms of this falling off her credit report, do we count 7 years from DOFD or DOLP?     DOFD

Thank you so much for anyone that is able to clarify these questions!

---

Thats all I know. 

---

Not saying your info is wrong, because I truly don't know, but in researching this very subject on these very forums I've read information that claims the SOL is based on the state where the account went delinquent. Aka if you had an account in Dakota (there's only one in this example) and you moved to Carolina (there's only one) and then you went delinquent, Carolina's SOL would apply. But if you had the account in Dakota, and went delinquent in Dakota, and then moved to Carolina, Dakota's SOL would apply.

I'd super like to know for sure one way or the other, because I've read a lot here and nothing has clarified beyond a shadow of a doubt. I have one account that is either 1yr and 9 months past the SOL or 3 months from passing the SOL. 😳

[FireMedic1]

The SOL is 6 yrs in VA. The SOL can be reset by making a payment. The fall off date from the CRA's will always stay the same. 7yrs 180 days from DoFD. Two separate things.

[Anonymous]

So based on the following article it states: "Open-Ended Accounts: An account with a revolving balance you can repay and then borrow again is open-ended. Credit cards, in-store credit, and lines of credit are all examples of open-ended accounts."

And then there is a state-by-state chart that lists VA as having a 3 year SOL for "open" accounts.

Is this info not correct?

https://www.thebalance.com/state-by-state-list-of-statute-of-limitations-on-debt-960881

[Anonymous]

I just did some further research and I'm finding a variety of answers depending on the source:

https://robertweed.com/2013/06/20/statute-of-limitation-in-virginia-for-credit-cards/

This attorney says "Five years if they can produce your signature on a written contract; otherwise three years. That’s in Code of Virginia 8.01-246(2) and (4)." Interestingly he also says "Also here’s the link to the Code of Virginia on restarting the statute of limitations.  8.01-229G.  A partial payment, without an express promise, is probably not enough to restart the statute in Virginia."

Unfortunately when I click his 'Code of Virginia' link it does not go to a valid URL

On the other hand this source says "

Virginia has a statute of limitations of six years for nearly all debts, including written contracts, oral contracts and open-ended accounts such as credit cards. That means that once such a debt is six years overdue, creditors can no longer attempt to collect the owed money."

https://www.debt.org/faqs/americans-in-debt/consumer-virginia/

Anyone have a reliable source to actually figure out the correct SOL?

[Anonymous]

Also I was wondering, how can I tell if the law firm that sent the letter is just representing Barclays or if the law firm actually owns the debt.

[OmarGB9]

I would consult an attorney to be honest to get a better answer about the SOL. As for who owns the debt, if the report is showing a balance with Barclays, but a law firm is contacting you about it, then most likely Barclays retains ownership of the debt and they simply hired a law firm to collect. If you want to be absolutely sure, though, I would call Barclays directly and ask.

[FireMedic1]

I stand corrected. From a law firm in VA:

Virginia Statute of Limitations on Debt Collection

Statute of limitations assign a certain time after which suit may no longer be filed and a collector may no longer collect a debt from a consumer. In Virginia, during the time period in which an account remains open, and no payment is made on the account, a collector has a statute of limitations of 3 years from the date of last payment or last charge for goods or services rendered on the account to file suit against a consumer. If a debt is based on a written contract (non-Uniform Commercial Code) the statute of limitation period is 5 years.

I Google this: "statute of limitations VA credit card"

[vntrsc]

From the VA code:

§ 8.01-246. Personal actions based on contracts.

2. In actions on any contract that is not otherwise specified and that is in writing and signed by the party to be charged thereby, or by his agent, within five years whether such writing be under seal or not;

4. In actions upon (i) any contract that is not otherwise specified and that is in writing and not signed by the party to be charged, or by his agent, or (ii) any unwritten contract, express or implied, within three years.