What do they mean by after the day the cause of action accru

It seems your debt is out of SOL.

You said its 7 years now. In that case your debt is out of SOL and a payment would restart the SOL.

I think on the date of first default begins the SOL

"the day the cause of action accrues" is another way of saying "the day they have a reason to sue you" -- or the day that you renegged on your promise. If you promised to pay them monthly by the 25th, on the 26th if they don't have a payment, then there is a cause of action because your broke your end of the agreement.

CreditGrantor..can you tell me what you do, for a living? I've read a few posts, from you, and I'm just a bit confused. Do you know laws in ALL states, or do you just deal with the laws, in the state you live in??

Basic contract law usually transfers from state to state. Creditgrantor is simply describing a breach of contract.

Oh..I understand. Was a bit confusing to me. Thanks for clarifying.

Sorry if I was confusing, just trying to give some examples. Cajun said what I didn't -- breach of contract is a better term.

To answer your other question, I run an auto-finance company. I receive credit apps from car dealers, I evaluate the apps and underwrite the loan approvals, and if approved we fund the car purchase. I also have to service our accounts and I manage our collections as well.

To the extent that Federal laws govern all loan transactions (ie reg B, reg Z), I am familiar with those as they apply to every state. But lending/contract laws and collection laws vary from state to state, so as far as those are concerned I am only familiar with IL and WI.

Oh..ok!! Thanks for the reply. You " finance autos"..cool?? What about people who have bad credit.....is it a higher % rate? Or..DO you finance those with bad credit? Sounds like your job keeps you busy. Thanks for the info back.

My company tends to deal in the "secondary market" -- meaning my customers have blemishes on their credit report that would otherwise prevent them from obtaining traditional financing through a bank.

It is true that "the higher the risk, the higher the rate" -- our rates would be anywhere between 12% upwards of 29%. The reason for this is simply because customers in this category do not perform as well, and there is a higher rate of default among the class as a whole. Increased losses and collection expenses create a large overhead, and so we must charge more interest in order to realize a profit on our returns.

BUT the rate is also in comparison to the amount being financed. We are mostly doing used autos in the $5-10K range. Take 18% on a $8K balance over 36 mos = avg $67/mo interest. Or look at 29% on a $5000 car over 24 mos = avg $68/mo interest. ... Where even 5% (bank rate) on a new car purchase $25K X 60 mos = avg $55/mo interest. So you see, the difference is not all that big.

A cease and desist letter should suffice; dispute the debt, tell them SOL has ran, and demand that they discontinue any efforts to contact you.

It is perfectly legal for them to try to collect on a debt they believe to be legitimate (you cannot blame the CA for purchasing a debt that the phone company should have deleted). However, they must be in compliance with FDCPA, as well as any state laws regarding debt collection (such as licensing requirements).

SOL begins after the last payment made, no matter how much the payment, even if it is a dime, it starts the SOL all over again.

Statute of limitations are different from each state, you will need to see what your state law is.

thats correct Goodnatured. That is why many CA will ask ppl to give them a 5 dollar goodwill payment. They do this to reset the clock on the SOL so they may file suit.

Dirty little trick, that works, people do not realize that what the actual affect is by paying this little bit of money.

Yes, CMBV is correct. Even if you make a partial payment after the date your SOL has expired, your SOL expiry date postpones. Although SOL expiry does not necessary mean that you are no longer liable for the debt, yet it provides defense to the customer against the suit filed by the creditors.

You are still liable for the debt, however you can not be sued, they can still continue to still collect on the debt.

You mean continue to harass you on the debt right good natured? What amazes me is when a debt is past SOL and they still don't want to make a decent deal to settle it out.

The collection agency may or may not call you to recover the debt. If it has listed its name against the debt in your credit report, it means that they demand the money back from you. To check whether you actually owe them the money or not, first get the debt validated by sending them a debt validation letter by certified mail. If they can properly validate the debt, you cannot get it removed from the credit report, else you may send a dispute letter to the bureaus and get the listing removed from your report.

No, you cannot get it removed from your credit report if it is correct. Correct listings can never be removed from the report, unless the creditor agrees to pay for deletion agreement in writing. When you dispute an item with the credit bureaus, the bureaus verify the listing with the creditors. Only if the creditors or the CA cannot prove that they own the debt, the bureaus remove it from your report, else not.