When exactly does the SOL end?

[msmedic]

What is the name of your state (only U.S. law)? Mississippi

I have an old HSBC credit card account with the following history, as reported on my credit report.

30 days past due as of Sep 2006
60 days past due as of Oct 2006
90 days past due as of Nov 2006
120 days past due as of Dec 2006
150 days past due as of Jan 2007
Charge Off as of Mar 2007, Feb 2007

In Mississippi, the SOL is defined as:

"Open Accounts: 3 years from the date at which time the items on the account became due and payable,(MCA 15-1-29 & MCA 15-1-31)"

If there has been no activity on this account (payments, payment arrangements, etc...) when does the SOL expire. If I understand correctly, would it be September of this year?

Any clarification would be appreciated.What is the name of your state (only U.S. law)?

 

[justalayman]

it would be 3 years beyond the first default. From what you posted, the default was in August '06 since it was already 30 days overdue in Sept '06.

so, actually, it would be beyond the SoL sometime in Aug '09. Whatever the due date was would be the specific date.

 

[latigo]

The period of time within which the creditor must commence a civil action to collect the delinquent account begins to run from the date of the last debit or credit activity to the account, WHICH THE CARD HOLDER ALONE CREATED.

Not debit entries by the credit card company. If that were so, they could keep the statute open indefinitely by continuing to add late fees and interest charges.

But you want to be aware that some of these of these slime bag collectors are not above claiming a fictitious payment or charge in order to toll the running of the statute.

You also need to be aware that the expiration of the statute does not dissolve the debt itself. It just outlaws its collection through the courts.

And in some states the defendant must plead the running of the statute as an affirmative defense or the defense is waived.

It is not uncommon for a cardholder to fail to respond to a collection complaint and summons on the mistaken belief that because the statute has run he is home free. Not so.

He cannot appeal from a default judgment nor collaterally attack it when the sheriff serves him with a Writ of Execution or his wages are garnished.

 

[justalayman]

=latigo;2349854]The period of time within which the creditor must commence a civil action to collect the delinquent account begins to run from the date of the last debit or credit activity to the account, WHICH THE CARD HOLDER ALONE CREATED.

I disagree. It would be from the first date of delinquency which would be the first due date the OP failed to make payment. Not the last date of payment.

here is an excerpt from another site that provides a good explanation of what I mean:

A statute of limitations, or limitations of action statute, begins to run when a cause of action accrues. In plain English, that means the statute begins to run when you have done something contrary to the terms of your agreement for which you can be sued. Most of the time, that "something" is failure to pay your bill. When you don’t make your payment on time, you have violated the terms of your agreement and you have given the creditor a cause of action.

 

[dfromnyli]

The is the first time I think I've ever agreed with justalayman.

 

[justalayman]

The is the first time I think I've ever agreed with justalayman.

and I doubt it even hurt, being the first time

 

[latigo]

I disagree. It would be from the first date of delinquency which would be the first due date the OP failed to make payment. :

I dislike involvement in hairsplitting and I think that is descriptive here.

Of course any statute setting a period of limitation within which a cause of action must be commenced cannot start operating before the cause of action arises.

And, except in cases where anticipatory breach is applicable, I agree that creditor’s cause of actions does not accrue until the debt is due and payable according to agreement.

But I certainly DO NOT agree that in cases of running open accounts that the SOL only begins to tick when the creditor arbitrarily declares the account to have gone into delinquency. Which erroneously implies that the creditor controls when the cause of action originates.

What means “delinquent”?

Webster says it means:

“past due; overdue; . . . ” *

Well, if an account is not past due or overdue, then it is not delinquent.

And if delinquent, then by definition it is past due and the cause of action accrued commensurately.

 

[justalayman]

I was simply being accurate.


in your latest post you state:

But I certainly DO NOT agree that in cases of running open accounts that the SOL only begins to tick when the creditor arbitrarily declares the account to have gone into delinquency. Which erroneously implies that the creditor controls when the cause of action originates.

which is inline with my statement.

who ever said the creditor determines when an account is delinquent? I surely didn't. There is a legal determination and that would be when the debtor is actually delinquent, which, by chance, would be when he first fails to make a payment on the first due date following his most recent payment.

since when is that an arbitrary decision? How is that the creditor making the determination?

It's real simple; when the debtor fails to make a payment when it is due, they are delinquent. They pay as agreed, they aren't delinquent.

The period of time within which the creditor must commence a civil action to collect the delinquent account begins to run from the date of the last debit or credit activity to the account, WHICH THE CARD HOLDER ALONE CREATED

which is completely wrong because they debtor is not delinquent at that time. They are not delinquent until they fail to make a payment as agreed.

 

[msmedic]

Thanks

I do appreciate all of the input. I do understand that even though the SOL has passed on this debt, it doesn't mean that I am free of the debt.

The main reason I asked is because I can't afford to pay it in full at this time and I don't want to make a partial payment (if they accept such) and re-start the clock. You all are very nice and I do thank you!