Hmm... I need to find out myself. I don't know what is the right answer to your question. I'll do some investigation and get back to you if I discover an useful answer. You should email the people at Discover Card as they probably could answer your Discover Card question..

When I sent them a letter denying the debt and requesting validation. THey sent a crappy validation letter but at the top it was clearly listed; Date of charge off: Dec. 15, 2004. So the debt is just over 5 years old...

Date of Charge Off is not equal to Date of First Delinquency (which is the date the SOL clocks starts). The DOFD was probably several months earlier actually....doesn't affect your SOL statement, just wanted to clarify..

This post has been edited by.

Jtoast.

: 07 January 2010 - 04:16 PM..

Is a CA likely to file suite on a $600 debt that is 5 years old?..

That depends on the CA and whether or not they think they can get away with a default judgement. I didn't say it was likely...just that it was possible..

This post has been edited by.

Jtoast.

: 07 January 2010 - 05:06 PM..

So they can still file suit but it will be up to me to actually go to court and show the judge that the debt is past the SOL?..

In a nutshell Yes..

Just because it's beyond Legal sol doesn't mean it's beyond reporting...

But if they DO sue you, you can file a counterclaim against them for their FDCPA violation..

Most of the time if the the debt is beyond the statute of limitations and the collection agency is reporting this on your credit report, the collection agency is considered to be conducting collection activities on a time-barred debt. According to the the Federal Fair Debt Collection Practices Act, 15 U.S.C. 1692(e) 807, it is a violation to imply that the legal status of the debt is collectible by reporting the alleged debt to the credit bureaus..

The relevant statute reads in part:.

€œA debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:.

... (2) The false representation of€”.

(A) the character, amount, or legal status of any debt; or.

(B) any services rendered or compensation which may be lawfully received by any debt collector for the collection of a debt.€?.

If the alleged debt is time-barred, the collection agency would have inadequate documentation to prove in court that it has the right to report this negative information on your credit report..

If you were my client, I would advise you to send them a letter advising them that they are in violation of the Fair Credit Reporting Act (FCRA) as well as the FDCPA and request them to immediately remove this negative account information from your credit report. Also remind them that non-compliance with your request may expose them to serious legal trouble with the FTC and other state or federal agencies. Be sure to also inform the collection agency that under the FCRA and the FDCPA, each violation is subject to a $1000.00 fine payable to you...

Could you explain this a little more? Are you saying reporting a debt past the legal SOL's is a violation of the FDCPA/FCRA even if the reporting SOL of 7.5 years has not expired?..

Ok...question from me on this....

My understanding is that stating the debt is "time barred" means that the state statutes declare the debt uncollectable after the SOL has ran. My understanding is also that not all states have this provision...and in fact, most states do not "time bar" the actual continued collection attempts on a debt, they only "time bar" the granting of a judgement..

Is this a correct understanding?.

This post has been edited by.

Jtoast.

: 08 January 2010 - 12:16 PM..

It can't be a violation. FCRa is VERY VERY CLEAR what debts can and cannot be reported for 7.5years..

Just because it's beyond legal sol in someone's state, doesn't make it a violation of the FCRA. (at least in my mind) since the FCRA is ABSOLUTELY clear on what debts can and cannot be reported for 7.5 years..

Any attorney that tries to sell you something by saying it's a violation of FCRA because it's beyond legal, i'm sorry.. is flat out giving you a piece of crappy advise..

We've said time and time again, just because it's past legal doesn't mean it's past reporting..

This post has been edited by.

Beli.

: 08 January 2010 - 12:18 PM..

Beli....

If a state declares the actual debt "time barred" AND has a similar state statue regarding continued collection action, I could see how it could be a violation of state law. Unfortunately I don't know of any states with that particular combination of laws...

However, most of these types of lawsuits, from what I see end up in Federal court(because of violations to FCRA), where Federal trumps State...

That was my understanding..

Just thought due to the name (and sig) of the poster whos post I was commenting on, I would ask...

Sorry, but you are wrong. Just because the debt is time barred does not mean it cannot be reported for the whole 7 year period (plus the 6 months)...

Also just noticed,.

Each violation is not subject to 1k. From my own attorney Statutory damages are capped at $1,000...

I forgot to mention in my original post. This has not yet been reported on my credit report...