How to get charged off account removed using statue of limitation

[creditisbetter2]

I have two credit cards from First Premiere Bank.  The first one was acquired in 2001 and the second one in 2002.  I had problems paying them and ended up letting them go into collections.  Well now it's 2009 and I feel as if they should fall off but the credit repair company I was dealing with stated that as long as it is being reported as a charge off on my report, it should be removable.  I looked up the statue of limitations for California and saw it was 4 years.  I don't fully understand how that works, do you have to live in the state of california for 4 years in order for this to apply?  When I first applied for the card, I live in California but then moved to illinois for a few years and came back to california in 07, how does that affect the statue of limitations?  If I send the Credit reporting agencies a letter to that effect, do they have to remove if off of my report?  Lastly, in order for the seven years to apply (for debt to fall off) would they calculate 7 years from the date the account was opened or the date the account was last reported?  That's confusing on my credit report.  Example below:

The example below has two columns, I just didn't know how to format it correctly.  One is posting from experian and the other from equifax.

FST PREMIE
Account No.: 543362875338**** 543362875338****
Condition: Closed (Transferred) Derogatory
Balance: $444
Type: Credit Card Credit Card
Pay Status: Collection/Chargeoff Collection/Chargeoff
Past Due: $444
High Balance: $444
Terms:
Limit: $250
Payment: $0
Opened: 09/2002 09/2002
Reported: 03/12/2004 12/2007
Responsibility: Individual Individual
Late Payments (last 7 years):
30 Days Late: 1 1
60 Days Late: 1 1
90 Days Late: 2 2
Two Year Payment History:
Remarks:
[TransUnion]
[Experian] Purchased by a another lender.
Unpaid balance reported as a loss by credit grantor.
[Equifax] Charged off account
Credit card

FST PREMIE
Account No.: 430171800323**** 430171800323****
Condition: Closed (Transferred) Derogatory
Balance: $0
Type: Credit Card
Pay Status: Collection/Chargeoff Collection/Chargeoff
Past Due:
High Balance: $739
Terms:
Limit: $350
Payment: $0
Opened: 11/2001 11/2001
Reported: 02/13/2004 07/2009
Responsibility: Individual Individual
Late Payments (last 7 years):
30 Days Late: 1 1
60 Days Late: 1 1
90 Days Late: 2 6
Two Year Payment History:
Remarks:
[TransUnion]
[Experian] Purchased by a another lender.
Unpaid balance reported as a loss by credit grantor.
[Equifax] Account transferred or sold
Charged off account

[RobertEG]

No. Statute of limitations has nothing to do with credit reporting.  It is a legal defense you can assert in court should they bring action for judgment on the unpaid debt.

If you send a letter to the CRA asserting expiration of the SOL as basis for removal from your CR, they willl dismiss it as not being relevant to the issue of validity of the debt.

[creditisbetter2]

Thank you for your response robert, very informative.  I've noticed some of your other responses to others questions and I am really impressed by your knowledge of various credit issues.  With that being stated, let me ask you what you think the best course of action would be to getting these items removed off my report.  Would you suggest settling or waiting until 7 year time frame?

[RobertEG]

The SOL under state laws begins initially with the first date that the account went delinquent.  That is the first 30-day late on the OC account.  That is also your DOFD for credit reporting drop off date of any CA account.

Once you have established your DOFD, you are assured that a CO or CA must drop from your CR at 7 1/2 years from that date.  The only way to get it off sooner is to either dispute the validity of the debt itself under FCRA 611(a)(5), or to get the creditor to accept a PFD offer.

Your chances of getting the CA to accept a PFD offer go up dramatically once the SOL has expired.

So know your state SOL law. 

A creditor can usually bring suit for judgment in either the state in which the initial contract was negotiated, or your current state of residence.  They will forum-pick, so know the SOL laws in both.

That is where your PFD offer must be made only after you know your state SOL stattue.  Some states provide that an offer to pay, which is what a PFD letter is, can reset the SOL.

I dont know the full SOL statutes for your state of contract, and your state of current residence.  Check them out before you proceed.