credit report understanding
The requirement, known as SOL, can mean many things to different people, even when they refer to as SOL applies to the credit industry. Many people get the statute of limitations confused with the period. Here's how to keep the two terms clear in your mind. It can make the difference to winning or losing a lawsuit over an unpaid debt.
The reporting period is defined in equity in Credit Reporting Act (FCRA). It's time that negative items can remain on a report. This is generally not more than 7 years from the date he was charged off, or 7.5 years from the date of first delinquency.
The statute of limitations (SOL) has absolutely nothing to do with how long a debt is recorded on your credit report. The SOL is governed by the laws of your state and differs from State to State. Refer to your state laws to limit what is in your state. Also, you should seek the status of the state in which you signed the loan agreement. Ground that the state could be used against you in court.
SOL is the time a collection agency or creditor Parents can sue you for a debt – with success. If you are in a lawsuit over an unpaid debt, the creditor has the upper hand, even after the SOL has passed. The SOL is also known as an "affirmative defense". This means that the judge did not rule out automatically result because that the creditor has filed after the SOL past. You, the Defendant have to use SOL as a defense. You must prove that the creditor or collections agency continues after the limitation period has passed.
Here's how to calculate the SOL:
1. Take the date of your last payment and add 6 months to that date.
2. Add the number of years the statute of limitations in your state.
Example:
Your has stopped paying a credit card on March 15, 2002. The limitation period for credit cards in your state is 6 years.
You can use the SOL as a defense to a creditor if you are sued after the September 15, 2008 calculated as follows:
March 15, 2002 + 6 months = September 15, 2002.
6 years + September 15, 2002 = September 15, 2008
Therefore, a creditor can sue you for this debt after September 15, 2008.
Your credit is an extraordinarily powerful your financial toolkit. Understanding laws that protect you can return save you from unnecessarily paying on debts that have adopted the statute of limitations. Do not let debt collectors pressure you into paying for something just because they sue you. Stand up for your rights or hire a lawyer to fight for you.
About the Author:
Kathleen Rieger is a member of the International Association of Privacy
Professionals. She has provided credit repair guidance for problems such as
bankruptcies, judgments, delinquencies and much more. She has been a guest
speaker at local churches, schools, Fortune 100 companies, and local radio shows. You can find out more free tips like this by enrolling in her
Free online credit repair seminar
at http://www.creditrejuvenation.com
Article Source: ArticlesBase.com – Your Credit Report – Understanding Statute of LImitations vs The Reporting Period
