Statute of Limitations: DOFD or DOLA ?

[GoingDown]

I was confused by DOFD and DOLA for awhile concerning my old charged off debts. The DOFD actually occurred 6 months prior to the date of charge off on all of my debts. For awhile I was going by charge off date, but I actually think the DOFD is what actually starts the SOL clock running.

I personally think the statute of limitations on suing over debts starts with the Date Of First Delinquency, not with the Date Of Last Activity.

For one thing, the creditor or junk debt buyer would have to prove that a payment was made BY ME during that time to legitimately reset the DOLA.

What I have noticed with my own debts is that vast majority of them will cross over the 6 year threshold of SOL on January 1st, 2012. That would be 6 years for most of them since the DOFD.

And I have old credit reports which show the DOFD and DOLA as the same date. This all changed when junk debt buyers purchased the old charged off accounts. The DOFD stayed the same, but suddenly the DOLA changed to the date the accounts were purchased by junk debt buyers. Some even showed a payment on that date, and I know I didn't make a payment on that date. I believe it is the amount that the junk debt buyers paid for the accounts, and let me tell you, they didn't pay much for them!

I kept all the old credit reports showing the old DOLA and the newer DOLA, as well as the letters from junk debt buyers showing when they purchased the accounts, and they show the same month and year as the newer DOLA.

If I was sued, I would certainly take these credit reports in to show the judge proof of what happened.

I went back and looked at all of the DOFDs for my many, many accounts, and it looks like one passed over the SOL threshold over a year ago, and another one slipped by in November. So, as far as I can tell, those are dead debts at this point. I would have to raise the SOL as an affirmative defense, but then I would win the lawsuit.

Most of the rest of them die the SOL death at the end of this month, with just a few dragging their feet into February.

The oldest one is scheduled to drop off my credit report in 2012. Yay!

All of them have remained silent and not made any move against me in the past few years.

[HHM]

That issue is very much state specific.
For SOL:
The clock STARTS running at DOFD.
However, the clock can be reset by certain events, that is the DOLA (making a payment, no matter how small; an overt admission of liability, leaving the country, etc).

If nothing has happened since DOFD, then DOFD and DOLA are the same day.

Don't confuse, DOLA for credit reporting purposes, and DOLA for SOL purposes, those are different animals.

For those reading this thread
SOL = statute of limitations
DOFD = date of first default
DOLA = date of last activity.

[df04527]

Yup.... What he said

[treehugger1]

I have the same credit report experiences as goingdown. I have four accounts that were purchased by JDB's. The JDB's report date of last activity as the month they purchased the debt. The original creditors also show the date of last activity as the date the JDB purchased the debt. Very funny. Some of these debts charged off 1-2 years before the JDB purchased the debt. I have copies of all my statements and older copies of credit reports. In two cases, the JDB's sent me the last year of my original creditor statements per my request for debt verification. The last "statements" from BoA show the sale to the JDB. The other two accounts I asked the OC for the six month record prior to charge-off. The important thing you need for many states is the date of first delinquency.

I do understand that some states do not start the SOL clock until the six-month charge-off date.

If you can get copies of your previous statements six months prior to charge-off, then you might want to collect this information for future benefit.

[AngelinaCatHub]

This link lists all you would want to know about SOL. It also gives a grid as to each states SOL. 'Hub

http://www.creditinfocenter.com/rebuild/statuteLimitations.shtml

[AngelinaCatHub]

Some states have laws which specify that a partial payment does not restart the clock on the SOL, unless there is a new written promise to pay. What that means is that you actually write out a new agreement with the orginal creditor and/or collection agency. If you live in one of these states, simply sending in a check doesn't restart the clock. The statute of limitations is only extended by new written promise to pay in these states:

Arizona, California, Florida, Iowa, Kansas, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nevada, New York, Texas, Virginia, West Virgina, Wisconsin.

This statement appears on the same link mentioned above. Depends on the State but AZ is included. 'Hub

[df04527]

Very cool ACH - learn something new all the time.... one thing I do like about the biz of credit and reporting etc. Always a twist somewhere along the line. Thanks for sharing!

[treehugger1]

ACatHub-

Note the following statutes for Oregon. Oregon was not in the list on the site mentioned requring written promise. Hence, it is important that everyone read their OWN state's SOL laws. Do not let a internet site interpret your state's laws unless they are willing to represent you in a court of law.

12.090 Accounts; accrual of cause of action. In an action to recover a balance due upon an account, the cause of action shall be deemed to have accrued from the time of the last charge or payment proved in the account. Interest, financing and carrying charges shall not be deemed such a charge. [Amended by 1973 c.204 §1]

Payment by sale to JDB does not qualify based on my detailed research of cases in this state.

12.230 Acknowledgment or promise taking contract case out of statute; effect of payment. No acknowledgment or promise shall be sufficient evidence of a new or continuing contract, whereby to take the case out of the operation of this chapter, unless the same is contained in some writing, signed by the party to be charged thereby; but this section shall not alter the effect of any payment of principal or interest.



12.240 Effect of payment after obligation becomes due. Whenever any payment of principal or interest is made after it has become due, upon an existing contract, whether it is a bill of exchange, promissory note, bond, or other evidence of indebtedness, the limitation shall commence from the time the last payment was made.

In Oregon promise to pay must be in writing to have an effect.

And, in Oregon SOL is based on date of last payment. This can be quite different than date of last activity.

[GoingDown]

Very interesting info.

The countdown to New Year's Eve is going to be extra special for me this year as it heralds the death of the vast majority of my debts, at least in terms of SOL.

To quote Frank Costanza (from the old t.v. show Seinfeld): "I feel re-born. I'm like the Phoenix, rising from Arizona."

[df04527]

Congrats! Is that when they are due to fall off your report? There are two SOL's involved in every negative reporting account. Just wondering which one was reaching it's death... so to speak.

[GoingDown]

No, just the SOL death for most of them. They won't be able to sue and win against me if I fight back against them using SOL as an affirmative defense against their lawsuit.

One of them is so old that it is scheduled to be removed from my credit reports either this month or next month. I haven't checked the latest report yet, since I get the free ones, once a year, but I figure by the next time I check it, that account will no longer be listed on my credit reports.

The rest will fall off either late next year or early 2013.

I don't plan to go back to using credit, but it will help me find a wider range of temp jobs, some of which do check credit reports.

[AngelinaCatHub]

I have the same credit report experiences as goingdown. I have four accounts that were purchased by JDB's. The JDB's report date of last activity as the month they purchased the debt. The original creditors also show the date of last activity as the date the JDB purchased the debt. Very funny. Some of these debts charged off 1-2 years before the JDB purchased the debt. I have copies of all my statements and older copies of credit reports. In two cases, the JDB's sent me the last year of my original creditor statements per my request for debt verification. The last "statements" from BoA show the sale to the JDB. The other two accounts I asked the OC for the six month record prior to charge-off. The important thing you need for many states is the date of first delinquency.

I do understand that some states do not start the SOL clock until the six-month charge-off date.

If you can get copies of your previous statements six months prior to charge-off, then you might want to collect this information for future benefit.

You are right TH1, but the grid quotes the states statutes in their links. I think I said it was State defined. BTW, have a great Christmas. GBWY. 'Hub

[treehugger1]

Hub', I've noticed that many of the websites that quote information are often out of date. State laws must change faster than the sites can keep up with.

I apologize if I offended you. Merry Christmas! TH

[AngelinaCatHub]

Hub', I've noticed that many of the websites that quote information are often out of date. State laws must change faster than the sites can keep up with.

I apologize if I offended you. Merry Christmas! TH

Oh NOT AT ALL. We've been traveling here a long time. Your posts are most accurate. This is good. I've so many irons in the fire that I don't have a bit of time as I would like. This is good at my age. I love this forum, I love the Family, and I love (in God) my favorites. You my friend are one I love. GBWY. 'Hub and Mrs.

[GoingDown]

I thought I would just update this...

As of today, February 1st, 2012, all of my remaining old defaulted debts are now beyond the SOL. I thought some of them might try a last minute Hail Mary sneak attack lawsuit, but I just checked the Maricopa County court website for my name and date of birth, and there have been no lawsuits filed against me.

It is over.

All of my remaining debts are now time-barred, and a simple affirmative defense would stop them dead in their tracks if they tried to pull a fast one on my.

The one tiny judgment has never been domesticated in my state. This is a grey area for me, but I think it is also dead because they failed to domesticate it in Arizona and renew it with the 5 year Arizona SOL for judgments.

I will now start to put my feelers out for jobs which check my credit report, and of course, I'm going to be using Google Voice exclusively for everything, so that I can quickly block anyone who I don't want calling me.