Is there a statute of limitations on old credit card debt?

[GoingDown]

I have never seen a credit report list a date of first default, its always been reflected as a date of last activity, which is also what was used to determine if underwriting would require the collection to be paid off. This could have changed, and if it did that is probably a good thing from a consumers point. I can't tell you how many times I've seen a loan officer advise a borrower to pay off an old collection, only to have it change the date of last activity to recent, scores dropped, and the borrower was no longer eligible for the loan.

Yes, Equifax lists the DOFD on credit reports, but only for the original creditors. Junk debt buyers leave this area blank.

[APL]

Is there a separate SOL for secured credit cards (Best Buy, Rooms To Go, etc.)?

After discharge and close, when is it all really, truly and completely over so that nothing IIB can legally comeafter you for it (I'm strictly speaking secured cards here - nothing like a vehicle).

Thanks.

[SunshineGal]

Yes, Equifax lists the DOFD on credit reports, but only for the original creditors. Junk debt buyers leave this area blank.

On an actual lender report, or your personal report?

[lotsahats]

THANK YOU, despritfreya and HHM, for bringing that up. I live in Georgia and listen to the Clark Howard consumer protection radio show. I love it, but I tear my hair out when he tells callers, "debt collectors can't sue you if the debt is too old." Of course they can sue you! You have a good defense, the statute of limitations, but if you don't answer the lawsuit (thinking the lawsuit itself is invalid) and they get a default judgment against you - you're hosed. That brand-new shiny judgment is completely valid and enforceable.

Gosh! I didn't know that!

So, let's say that you do get sued past the statute of limitation, and you answer the judgement, and appear in court, and the case gets dismissed, because it is past the SOL. Can the debt collector try to re-sell the debt after that (I know, it wouldn't be legal), or are you then free and clear?

[GoingDown]

On an actual lender report, or your personal report?

Since I have never applied for a mortgage, I don't about the lender report, but I was talking about my personal credit report from Equifax.

I would assume they would be the same.

[GoingDown]

Gosh! I didn't know that!

So, let's say that you do get sued past the statute of limitation, and you answer the judgement, and appear in court, and the case gets dismissed, because it is past the SOL. Can the debt collector try to re-sell the debt after that (I know, it wouldn't be legal), or are you then free and clear?

Yes, they can sell it to other junk debt buyers forever, but it doesn't matter, it is forever beyond the SOL. The SOL doesn't change when they sell it. It remains the same.

If they sell it after that, and the new junk debt buyer tries to sue you-- a very unlikely thing by the way-- then you still have to raise the SOL as a defense to the lawsuit, but you can get them to pay your court costs, etc., by countersuing for violating the FDCPA for filing a lawsuit after the SOL expired.

[lotsahats]

THANK YOU, despritfreya and HHM, for bringing that up. I live in Georgia and listen to the Clark Howard consumer protection radio show. I love it, but I tear my hair out when he tells callers, "debt collectors can't sue you if the debt is too old." Of course they can sue you! You have a good defense, the statute of limitations, but if you don't answer the lawsuit (thinking the lawsuit itself is invalid) and they get a default judgment against you - you're hosed. That brand-new shiny judgment is completely valid and enforceable.

I really wish the consumer-protection people were more explicit on this point.

Have you thought about calling the show and pointing that out?