I just got two out of my three free credit reports online. Equifax keeps saying they can't verify my information, so I guess I will have to order that one in the mail, although if they have wrong information for me, that is worrisome. I have decided to try to clean out my credit history as much as possible. I have a long history of bad marks, mostly collections for various smaller bills (cable, phone, medical, etc) and two larger ones for student loans. One of these student loans has been rehabilitated for a couple years now, so my main concern is the old collections.
Firstly, I have read all about the various SOL by states, but I have moved a lot recently, starting in PA, moving to OH, then to KS, and now back to PA. Are the SOL enforced by the state I was in when I incurred the debt, or where I live now?
Next, a lot of these collections will be expiring before the end of 2011 from my CR. Is it worth bothering to try to send them DV letters or offer PTD? My thinking is that I might save myself time and money by just letting them go away and it seems they won't boost my score a ton to get rid of since they are between 5-6 years old already anyway.
As for ones I do want to deal with, what is the likelihood of the DV letters actually working to get rid of these? I have read of all the strategies, but I don't see any success rates anywhere. How often do these things generally work and how often do they end up getting rid of the black mark? Also, is there a possibility that sending a DV could anger the CA and cause them to resume collections, even lawsuits? Most of my debts are under $400, so I doubt it's worth it for any to file suit, but who knows. Also, this is giving my new address to the CA when I send these letters. As of right now, none of them have my address or phone number, so I at least am free of the calls and letters.
My worry is that I send a DV for a collections account that will expire in a year from my report anyway, this will make the company just now decide to sue me. Does this happen sometimes? This is also why I want to find out where the SOL is based so I can figure out if that is even possible. Lastly, when does the SOL start? Is it once the account was originally turned over to collections?
Sorry for the length of the question, but I want to thoroughly research the whole situation before I proceed. I just found out through a bank that my current middle FICO score is 550, which obviously needs a lot of work. As far as positives, I am listed as an authorized user on my wife's credit card that has no late payments ever and has been open about 3 years. It is nearly maxed out and on a reduced payment plan, according to my report, but it has a perfect history of no late payments. Thanks for any help.
Statute of limitations.
Under Statute of Limitations (SOL), your creditors can sue you either in the state where you are living at present or where you entered into the contract with your creditors.
Its better not to send any debt validation letter as the debt is going to fall off your credit report after 7 years, as have you mentioned they are almost 5-6 years old; they are almost on the verge to fall off your credit report.
A Statute of Limitations starts at that time, when you last corresponded with your creditors. If you write a letter to them or call them, the debt is active. The last time of your payment is also considered as the last time you had any contact, then that will be the date, the SOL will start.
Sol does not restart from letters being sent. The only way sol can restart is from payment. How else would it be possible for anyone to dispute debt? Someone please correct me if I am wrong.
Everything else I have read on this site indicates that SOL only restarts upon making a payment or entering into a payment agreement of some sort.