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  1. #1
    Join Date
    Nov 2008
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    5

    Default Statute of Limitations on Credit Debt, and if a Lawsuit Can Be Filed

    My question involves collection proceedings in the State of: Ohio
    I received a letter from a collection agency seeking payment on a card debt debt,that was charged off on 10-31-02.They have since sent this to a law firm that I ask to validiate the debt and they sent back a letter only stating the orginal creditor,amount due and interest accurred on this account and the account number.They say the charge off date was 10-31-02,but the last payment made on this was 8-31-04.I have no record anywhere thar any payment was made on this account after the charge off date.The law sent a letter stating that if no settlement was received by 11-02-08,they would file a law suit against me.I believe this debt has passed the SOL,but don't know what steps to take from here.Do they have a valid case?My only contact on this debt has been through the mail.

  2. #2
    Join Date
    Apr 2008
    Location
    Texas (Dallas area)
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    1,404

    Default Re: Statute of Limitations on Credit Debt, and if a Lawsuit Can Be Filed

    Quote Quoting dani
    View Post
    My question involves collection proceedings in the State of: Ohio
    I received a letter from a collection agency seeking payment on a card debt debt,that was charged off on 10-31-02.They have since sent this to a law firm that I ask to validiate the debt and they sent back a letter only stating the orginal creditor,amount due and interest accurred on this account and the account number.They say the charge off date was 10-31-02,but the last payment made on this was 8-31-04.I have no record anywhere thar any payment was made on this account after the charge off date.The law sent a letter stating that if no settlement was received by 11-02-08,they would file a law suit against me.I believe this debt has passed the SOL,but don't know what steps to take from here.Do they have a valid case?My only contact on this debt has been through the mail.
    The first thing I would do is the following;

    Pull all three of your credit reports and see when the last payment date was. If it was in 2002 or 2004. That will prove as to when the SOL will run out.

    Here are links to the three credit bureus. Be sure to pull all three and not just one.

    http://www.transunion.com/

    http://www.experian.com/

    http://www.equifax.com/home/

  3. #3
    Join Date
    Jan 2006
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    38,867

    Default Re: Statute of Limitations on Credit Debt, and if a Lawsuit Can Be Filed

    I don't think the time difference really makes any difference. The SoL for written contracts in Ohio is 15 years.

    2305.06 Contract in writing.

    Except as provided in sections 126.301 and 1302.98 of the Revised Code, an action upon a specialty or an agreement, contract, or promise in writing shall be brought within fifteen years after the cause thereof accrued.
    Effective Date: 07-01-1993

    they sent back a letter only stating the orginal creditor,amount due and interest accurred on this account and the account number
    that fulfills the legal requirement of the FDCPA

    Bottom line; Yes, they can file a suit. If you believe the SoL is a valid defense, you will simply present this in your answer to the summons you will recieve if they sue you, along with any other defenses you believe to be germane.

    Then, if they wish to continue with the case, you will get the opportunity to prove your defense in court.

  4. #4
    Join Date
    Apr 2008
    Location
    Texas (Dallas area)
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    1,404

    Default Re: Statute of Limitations on Credit Debt, and if a Lawsuit Can Be Filed

    I agree with JK. However, you should still obtain your credit reports as you do not remember the dates, amount of original debt and the amount of payments.

    This will help you mount a defense and at least give you something leverage to settle this down the line.

  5. #5
    Join Date
    Nov 2008
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    5

    Default Re: Statute of Limitations on Credit Debt, and if a Lawsuit Can Be Filed

    I thought the SOL on credit card debit in Ohio was 6 years,not 15years.

  6. #6
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    Jan 2006
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    Default Re: Statute of Limitations on Credit Debt, and if a Lawsuit Can Be Filed

    Quote Quoting dani
    View Post
    I thought the SOL on credit card debit in Ohio was 6 years,not 15years.
    In my search for the proper SoL, I too found many sources stating 6 years, or even 4 in one case. When they did reference a state law, that law wsa not applicalble. They referred to the non-written contract SoL.

    2305.07 Contract not in writing - statutory liability.

    Except as provided in sections 126.301 and 1302.98 of the Revised Code, an action upon a contract not in writing, express or implied, or upon a liability created by statute other than a forfeiture or penalty, shall be brought within six years after the cause thereof accrued.
    Effective Date: 07-01-1993
    I do not see how this would be applicable to a credit card account.
    I have found no other SoL that would apply.

  7. #7
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
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    5,252

    Default Re: Statute of Limitations on Credit Debt, and if a Lawsuit Can Be Filed

    The problem is that more & more states & courts that used to consider credit cards as open accounts are now considering them as written contracts (except store cards) with the longer SOL.

    The info I have re Ohio (written by a debt collector) - The Oh. courts will agree with collectors that the SOL in Oh. is 15 years as they argue a credit card is a written contract. (though it's hard to say what any individual court will decide - I have no statute re the 15 yrs.)

  8. #8
    Join Date
    Sep 2008
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    wayne county
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    23

    Default Re: Statute of Limitations on Credit Debt, and if a Lawsuit Can Be Filed

    http://www.creditinfocenter.com/rebu...itations.shtml

    Open-ended Accounts: These are revolving lines of credit with varying balances. The best example is a credit card account. Please note: a credit card is ALWAYS an open account. This is established under the Truth-in-Lending Act:

    the sol is six years from date of last payment.

  9. #9
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    Jan 2006
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    38,867

    Default Re: Statute of Limitations on Credit Debt, and if a Lawsuit Can Be Filed

    Quote Quoting Jackie2
    View Post
    http://www.creditinfocenter.com/rebu...itations.shtml

    Open-ended Accounts: These are revolving lines of credit with varying balances. The best example is a credit card account. Please note: a credit card is ALWAYS an open account. This is established under the Truth-in-Lending Act:

    the sol is six years from date of last payment.
    please show me the statute that states this to be so. I have provided a written and oral limitations statute. Which one do you believe to be applicable?

    Ohio does not seem to take an "open ended account" into consideration, just written or not written.

    As I stated before, the statute cited in the link you provided (2305.07) involves non-written accounts.

    an action upon a contract not in writing, express or implied,
    A credit account is in writing.

  10. #10
    Join Date
    Jul 2008
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    853

    Default Re: Statute of Limitations on Credit Debt, and if a Lawsuit Can Be Filed

    Many people make the mistake of confusing open ended accounts in the SOL discussion. Remember that the law says

    2305.06 Contract in writing.
    Except as provided in sections 126.301 and 1302.98 of the Revised Code, an action upon a specialty or an agreement, contract, or promise in writing shall be brought within fifteen years after the cause thereof accrued.

    Courts in some states have ruled that a credit card is a written agreement, while courts in others have ruled it is not. Consult an attorney

    For example, Florida case law states that in order for a credit agreement to be considered in writing, there must exist certain elements, including the written promise to pay, the amount to be paid, and the schedule upon which payments are to be made. Anything less is not a written agreement.

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