Understanding difference between reporting period and SOL
It would be best to not think of SOL for reporting as more then just the expiration period when the debt comes off of the credit report.
Here is a run down on reporting periods:
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You have to really watch these type of listings, cause the collection agency will sometimes report a later date then it should of been resulting in re-aging of the account. This can cause a debt to remain listed beyond the 7 year period when it should of been removed, and can also make debt appear to be still in SOL for collecting on the debt. (will explain that part in detail a bit later).
Now Statute of Limitations for collecting, this differs from one state to the next how many years SOL can last.
Goes from the last payment on the account so many years, once that time expires then the debt is time barred, meaning that if a creditor after that period takes you to court you can go into court and point out to the judge that the SOL has expired and the case should be thrown out. You MUST appear in court though to defend yourself, the judge is not going to ask the creditor if the debt is time barred, you have to be there to tell the judge yourself, otherwise he / she will find for the plantiff and issue a default judgment.
You only have a years time in most courts to dispute once it is filed, and would need to contact court clerk on instructions to vacate the judgment (have case thrown out) if that is the case.
Also most states have requirement of the plantiff to serve notice of court date setting in given states, if you are not served proper notice to appear in court you can in that following years time dispute with the court to have case thrown out.
Notice of judgment includes:
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You need to call the state attorney's office to check on what proper notice is for your state.
If a creditor bothers you after you know that the SOL has expired, then it is your right to notify them of your wishes to have no further contact them them. This is called a cease and desist letter and a google search can product any number of sample letters to go by. Only use FULL cease and desist when you know the SOL has expired, otherwise if before that time you use such a tool, it usually will result in a creditor or collection agencies notifying you of their intentions to take you to court and sue for the balance owing on the debt.
If prior to SOL expiring, then a partial cease and desist letter would be used, this would tell them to please contact you solely by mail, that phone calls are not accepted, home or at work.
Will add more as I recall on this subject.. thanks.
[size=2][color=darkred][Vikas :Formatted the Post][/color][/size]
Hi guest Quote:thanks for explaining the difference. You a
Hi guest
Quote:
thanks for explaining the difference. |
You are always welcome in the forums. You can get all your queries related with debt solved here with skillfulness.
Please share your views and knowledge with us. Hope to see you often in the board
Roxette
I forgot to mention that there is no existing statute of limitat
I forgot to mention that there is no existing statute of limitations on federal student loans, and tax liens. Not only can they sit on the credit report forever, but they can seek legal remedy to collect forever. Federal student loans can't be discharged in bankruptcy, it would take real hardship and consideration of a judge if they are.
All other types of accounts will have an statute of limitations.
Great Post
Great Post :)
Many of our members had doubt on this topic.
Vikas
I thought to add the different types of accounts in relation to
I thought to add the different types of accounts in relation to the statute of limitations.
Open end accounts: These are like credit cards, medical debt, and utility accounts that don't have set terms, and are revolving meaning that you can reuse the credit or service month to month.
Close end accounts: These accounts have set terms, like installment loans, contracts with landlords, auto loans and such. These are not re-usable, have to sign a new contract.
Promissory Notes: These are checks written.
Verbal Contracts: These are not very strong to fight in court and would not recommend someone entering personal agreement, without some written agreement having been made.
Example would be Illinois SOL Open = 5 years Contracts = 10 years = Promissory Notes = 10 years = Verbal Agreements = 5 years.
Now if a judgment was filed in Illinois that has a separate SOL too, it is 20 years here... and in other states might be renewable, meaning after 10 years the creditor would have to reappear in court to enter in a new judgment, and in this case the credit reporting agency would re-enter a new listing for this renewed judgment, because it will have a new docket number. So 20 years total SOL and 14 years total on the reporting.
There are more states at 10 years with renew options then like Illinois just showing 20 years all together.
Now the credit reporting agency technically can report 7 years or the full 20 years on the SOL, but generally they just report 7 years. Easier then keeping up with so many people in so many different states.
Quote:Open end accounts: These are like credit cards, medical de
Quote:
Open end accounts: These are like credit cards, medical debt, and utility accounts that don't have set terms, and are revolving meaning that you can reuse the credit or service month to month. |
I was under the assumtion that medical Accounts were governed by The UCC as a "service" account, which in most cases of States that have adopted the UCC in whole without "tighting" it up is four years?
Jerry
Must admit I am not familiar with the UCC they differ greatly on
Must admit I am not familiar with the UCC they differ greatly one state to the next, but having spoken to collection friends in the know I was informed that like for Illinois 5 years was the SOL on medical debt. Which is the open SOL here in Illinois.
Would be nice if you can reference on of the UCCs that I could look at, I am not very good with legal jargon, but would be nice to see it and try to understand it better.
UNIFORM COMMERCIAL CODE just google the UNIFORM COMMERCIAL CODE
UNIFORM COMMERCIAL CODE just google the UNIFORM COMMERCIAL CODE by itself an/or for your state.
Here is a excerpt for a case where a Hospital calims they "OFFER" services and not goods:
Quote:
Brandt filed a six-count complaint in July 2000, alleging negligence, strict liability, and breach of warranty against defendants Boston Scientific Corporation and Sarah Bush Lincoln Health Center. The Health Center filed a motion to dismiss counts IV through VI under section 2-615 of the Code of Civil Procedure (Code) (735 ILCS 5/2-615 (West 1998)) because the Health Center was not a merchant of medical devices and because the transaction between Brandt and the Health Center was predominantly for services instead of goods. |
And here a Indiana Medicaid law listing them as services:
Quote:
Service: Physicians' surgical and medical services*+ Indiana Medicaid Benefits: Covers reasonable services provided by a M.D. or D. O. for diagnostic, preventive, therapeutic rehabilitative or palliative services provided within scope of practice. Prior approval required for services not provided directly by M.D. or D. O. Will not reimburse for preparation of reports; missed appointments; writing or telephoning prescriptions to pharmacies; telephone calls to laboratories; after-hours services. PMP office visits limited to a maximum of 30 per year per recipient without prior authorization. CHIP Benefit Package: Covers reasonable services provided by M.D. or D.O. for diagnostic, preventive, therapeutic, rehabilitative or palliative services provided within scope of practice. Prior approval required for services not provided directly by a M.D. or D.O. Will not reimburse for preparation of reports; missed appointments; writing or telephoning prescriptions to pharmacies; telephone calls to laboratories; after-hours services. PMP office visits limited to a maximum of 30 per year per recipient without prior authorization. **Prior Approval Always Required *Prior Approval Required Under Certain Circumstances +Federally Required CHIP Benefits." Indiana SCHIP Amendment, Attachment C-1, page 2. |
So therefore I move they are servies and are governed by the UCC or State Adopted/Modified UCC regulations for Goods & Services...which in my case here in Indiana is 4 years for SOL.
Jerry[/url]
I will look over try to understand this one, if this is right, t
I will look over try to understand this one, if this is right, then the collection agencies are interpreting incorrectly when they can sue.
Though in my experience collection agencies usually sue immediately when they get medical accounts... so it may be mute for the most part.
It will take me a bit of reading; I have a hard time with legal stuff, but will keep trying.
I had also heard on another board that there is a UCC law making repose shorter then contract SOL. Maybe you have heard of this as well.
Roxette suggested that we could meet up in chat and talk some mo
Roxette suggested that we could meet up in chat and talk some more about this area of research.
I don't mean to be amiss about this, not my strongest area. But
I don't mean to be amiss about this, not my strongest area. But I think I finally found what you where referring to:
U.C.C. - ARTICLE 2 - SALES
..PART 7. REMEDIES
?? 2-725. Statute of Limitations in Contracts for Sale.
(1) An action for breach of any contract for sale must be commenced within four years after the cause of action has accrued. By the original agreement the parties may reduce the period of limitation to not less than one year but may not extend it.
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I think I am totally missing the "service" section to know what that is compared to this. Can you help point me in the right direction, I think I am getting closer but it is really hard following.
Is this US UCC or is this a specific state that you pulled up?
Thanks for your patience.
Let all the privileged members of this site meet in the chat roo
Let all the privileged members of this site meet in the chat room. We can interact with each other with zeal :D
Roxette
(2) "Account", except as used in "account for", means a right to
(2) "Account", except as used in "account for", means a right to payment of a monetary obligation, whether or not earned by performance, (i) for property that has been or is to be sold, leased, licensed, assigned, or otherwise disposed of, (ii) for services rendered or to be rendered, (iii) for a policy of insurance issued or to be issued, (iv) for a secondary obligation incurred or to be incurred, (v) for energy provided or to be provided....
(44) "Goods" means all things that are movable when a security interest attaches. The term includes (i) fixtures, (ii) standing timber that is to be cut and removed under a conveyance or contract for sale, (iii) the unborn young of animals, (iv) crops grown, growing, or to be grown, even if the crops are produced on trees, vines, or bushes, and (v) manufactured homes. The term also includes a computer program embedded in goods and any supporting information provided in connection with a transaction relating to the program if (i) the program is associated with the goods in such a manner that it customarily is considered part of the goods, or (ii) by becoming the owner of the goods, a person acquires a right to use the program in connection with the goods. The term does not include a computer program embedded in goods that consist solely of the medium in which the program is embedded. The term also does not include accounts, chattel paper, commercial tort claims, deposit accounts, documents, general intangibles, instruments, investment property, letter-of-credit rights, letters of credit, money, or oil, gas, or other minerals before extraction.
So there I found it, that service is not goods, but I still can't find reference where you link "service" to a 4 year SOL.
Canadian account on US credit report
Hi,
A few days ago I got a letter from NCO Financial collection agency about a Canadian student loan I have.
A few questions:
1. Can this show up on my credit report in the US (where I have lived for 6 years)? The loan is from a Canadian bank but the collection agency is American.
2. My last payment was around 2000 or 2001...if it does end up on my credit report, is that the date of last action or is it the date when collection agency contacted me?
3. I am willing to pay the whole thing to them. Is it common to make some kind of deal that I send 100% and they don't report to credit agencies? This would of course have to be in writing. As far as I know collection agencies voluntarily supply information to CRAs and are not obligated to do so, is this correct?
Thank you for any replies.
RE:
Hi Eddie,
Welcome to the debt consolidation care forum.
Quote:
1. Can this show up on my credit report in the US (where I have lived for 6 years)? The loan is from a Canadian bank but the collection agency is American. |
It might show up on your credit report in the US. But at times the chances seem bleak too because the countries are different.
Quote:
2. My last payment was around 2000 or 2001...if it does end up on my credit report, is that the date of last action or is it the date when collection agency contacted me? |
Yes, the credit report reflects the last time the collection agencies have been in touch with you and when you have last paid.
Quote:
3. I am willing to pay the whole thing to them. Is it common to make some kind of deal that I send 100% and they don't report to credit agencies? This would of course have to be in writing. As far as I know collection agencies voluntarily supply information to CRAs and are not obligated to do so, is this correct? |
This depends totally on how well you can actually negotiate with the Collection Agency. You should remember that the main concern of the Collection Agency is to retrieve the money from you. Once they get all their money back, there shouldn't be any problem for them so as not to report to the credit agencies.
Yes, the Collection Agencies are not obligated to report to the CRAs. Request them to give you in writing all the proceedings once they have agreed to do you the favor of not reporting to the Credit Agencies.
Keep in touch and inform us of the latest proceedings.
Cheers,
Jason
Re: RE:
Hi,
Quote:
1. Can this show up on my credit report in the US (where I have lived for 6 years)? The loan is from a Canadian bank but the collection agency is American. It might show up on your credit report in the US. But at times the chances seem bleak too because the countries are different. |
So the collection agency can report the collection even if the orifinal debt is not on the credit report? That is the twist to this. Nothing from Canada (good or bad) has ever shown up on any of my US credit reports. So I wonder if the CA sends a collection notice to a CRA regarding an account that the CRA does not have on file, if that is possible? Doesn't the original creditor have to have sent the information of the debt first?
And on a FICO, how bad is a collection in terms of points? 50, 100? I know you can't give me a solid number since every case is different, but can you give an estimate?
Hopefully it won't come to that but I want all the info I can get.
Thanks.
I disagree, that collection agency should not add the debt to th
I disagree, that collection agency should not add the debt to the credit report, cause it is not a US Debt. I am not familar with other countries, but to each their own.
Plus the amount of time since defaulting on the original debt, it is almost beyond allowable reporting periods any way for US credit reporting laws.
Who is the collection agency?
And moreover the SOL also matters in the state from where the de
And moreover the SOL also matters in the state from where the debt originated.
Roxette
[quote=Pammila]I disagree, that collection agency should not add
[quote=Pammila]I disagree, that collection agency should not add the debt to the credit report, cause it is not a US Debt. I am not familar with other countries, but to each their own.
Plus the amount of time since defaulting on the original debt, it is almost beyond allowable reporting periods any way for US credit reporting laws.
Who is the collection agency?[/quote]
It is NCO Financial which I have read is not the most ethical company out there. I live in NV they are based in PA but I checked with the NV office of consumer affairs and NCO is licenced in NV too.
I sent them a validation letter yesterday by certified mail. So now I wait and see if/what they send back to me.
So far all 3 credit bureaus do not have the info on file so that's a good sign for now.
I figure CAs only care about getting their money. If I tell them the only way the get a dime is if they tell me in writing they don't tell a CRA about me, I am pretty sure they will agree. If they do rport me they get $0 since my credit is shot to hell either way.
Usually NCO is a company that goes after SOL expired debt, and t
Usually NCO is a company that goes after SOL expired debt, and they usually violate some law or another, so be sure to check licensing requirements for your state first before you deal with them.
Keep all correspondence in writing with this company.
You can check with your Attorney Generals office for reports on this company. Give you idea what you are up against.
Howdy from Texas
So I was off work and surfing and found this place and thought I would join up. I don't have much more to say right now except I need to start reading some of the older posts to get up to speed before I can start posting.
Em