Can a derogatory account continue to show up on my credit report after the statute of limitation expires?
The statute of limitation has no bearing on the length of time an account can show up on your credit report. Nevertheless, the statute of limitation is a critical piece of the credit repair puzzle.
Collections after SOL
The statute of limitation (SOL) is the length of time a debt can be collected through the courts. Once the SOL has passed, a collector may attempt to sue you, but if you invoke the SOL defense the case will be overturned. It is worth noting that there are many law firms that get into the collection business and choose to specialize in these outdated collections.
Know Your Rights
As it happens, these collectors are very profitable – for two simple reasons. First, collection letters are intimidating, especially when they come on attorney letterhead. And second, most people are clueless about their rights. We ask our credit repair customers to send us collection letters as quickly as possible so we can research the SOL.
Shutting Down Collectors
If the debt is beyond the SOL there is nothing anyone can do to hurt you. And you have a couple of excellent powerful credit repair options that can neutralize the collector or even make them go away forever. If a collector is harassing you, you may send a cease communication letter. Once you send a cease communication letter the collector must stop contacting you.
Use Your Knowledge
Beyond the SOL you may also opt to negotiate the debt. The collector cannot sue, so they have no legal leverage. Once you tell them that you are aware of the law, they should be very happy to settle. After all a little money is better than none, and they know that you can hang up the phone.
Reporting periods for collections start with the date of the original default and last for seven years plus 180 days. SOLs are unique to your state and to the type of debt involved. Generally SOLs are quite a bit shorter that the reporting period.