SOL Questions for CT--Midland Involved

[Anonymous]

Hey all-- 

My ex husband and I purchased furniture with 0% interest and 0 payments for a year, back in April 2009. We never paid it, after that time period (or during that time period.) It won't be paid--it's not worth disputing who owns what with him. 

My question is this-when does SOL actually hit on an account like this? CT law is 6 years for SOL on accounts like this...wasn't sure if SOL started 6 years from the account being opened, or when payments were actually due.  Midland (yeaaaa <insert sarcasm>) has purchased the account and is reporting it as open. However, if  the SOL for CT is from when the account was opened....Midland is now invalid, as SOL would have expired. If it's not....can I still fight Midland, with reporting this as an open account? They are reporting it opened as of last November. That may be when they purchased the debt...but definitely not when the account was opened.

Thanks for any info you can give! Much appreciated! 

[Anonymous]

SOL generally starts from the month after payment was missed. The exact date can sometimes be difficult to nail down, but assuming May-2009 due date and 6 year SOL, June of this year would likely be safely beyond end of SOL. Regardless, in my view, there's near zero chance of Midland suing or doing much other than calling and sending letters...

When you get any from Midland, turn over and look at the back about half way down ... if it's out of SOL, you'll see a blurb saying something, to the effect, they won't sue you for the debt.

As for what to do, view your free credit reports via AnnualCreditReport.com and look at the tradeline (TL) for the debt ... look for the DOFD (date of first delinquency) - it should be a 2009 date. TransUnion is easier to understand, since they show the estimate date of removal instead of DOFD.

DOFD / credit reporting is not related to SOL. They can and often are different.

Tradelines fall off credit reports around ~7 years after DOFD. All three bureaus tend to remove TLs earlier than what the law requires.

If the DOFD is shown as sometime in 2009, do nothing and let it fall off. Contacting Midland will lead to more calls and letters.

[Anonymous]

The issue is that the original account was opened 2009, with a year of no payments and interest as part of the loan until April 2010. So, payments weren't actually due until 2010. That company sold the account to Midland and they took it over in 2014. However, Midland is reporting it as open...which it is definitely not. I did check Transunion..this is where all this info came from. If the original account is over the SOL, I would dispute Midland via the credit bureaus...hence my ask. 

I was divorced and unemployed all within 6 months and got hit with some of my ex-es accounts....I'm in a position to finally take care of the baddies. Trying to start with the largest balances and the going to PFD (hopefully!) some other accounts and try to GW some other ones. This Midland one is the only one that has me confused.

[gdale6]

SOL starts at the DoFD that leads to the CO. if no payments were due until Apr 2010 and no payment was ever made to bring the account current then the DoFD is the 30 day late mark that immediately preceeds the CO (most likely May 2010) this is the date the SOL would run from.

[RobertEG]

SOL statutes are almost always based on the date for which they have a cause of action, meaning the date that you first miss a payment.

Yu then become in arrears under your contract, which permits them to sue.

If there was a period where no payments were due, then the account was not in arrears/default until the first payment that was due was not paid.

Under that secenario, the DOFD and begin of SOL dates would be the same.

[Anonymous]

SOL and credit reporting have no relation to each other. An out of SOL debt is still a legal debt, but the creditor / debt collector, generally, can't use the courts to collect.

Even if out of SOL, that's not a basis for disputing. A collection account being shown as "open" is common. This doesn't affect DOFD nor the start of SOL.

Midland will update every month like clockwork keeping your credit scores depressed until the TL falls off in 2017 or maybe even later. Settling with Midland will usually stop the updating (reducing impact on scores as time passes), but TL will remain until fall off - Midland usually doesn't do PFD nor GW.

You mention checking TransUnion. What does the estimated date of removal say?