Charge-off question

[TToby]

What is the name of your state? Illinois

I'm being sued by a CA for an old credit card debt - amount 1287.06. The only validation I've been sent are 2 statements from 1997.
Using the statement from 7/97 ($1050.46) and adding the interest of 20.20% (which is what that statement used), I come up with the approx. total I'm being sued for (within a few dollars) in 8/98 which is the exact date my debt was sold to the CA.

So, I've proved that there was no payment made between 7/97 and 8/98. Shouldn't this debt have been charged off?
My credit report shows the charge off as 12/99-5/2000, 10/99

Also, do you think this will be enough to have the case dismissed based on expired SOL?

BTW, I remember there was a big go around on this issue on my first post back in July but I wasn't sure what the final agreement was.

 

[bigun]

That debt was chargedoff it was just reaged. FDIC regs require a chargeoff within 180 days of default so, early 1998 should be the chargeoff.

http://www.fdic.gov/regulations/laws/rules/5000-1000.html

burdensome for the institution being examined and for examiners.
Actual credit losses on individual retail credits should be recorded when the institution becomes aware of the loss, but in no case should the charge-off exceed the time frames stated in this policy. This policy does not preclude an institution from adopting a more conservative internal policy. Based on collection experience, when a portfolio's history reflects high losses and low recoveries, more conservative standards are appropriate and necessary.
The quality of retail credit is best indicated by the repayment performance of individual borrowers. Therefore, in general, retail credit should be classified based on the following criteria:
• Open- and closed-end retail loans past due 90 cumulative




days from the contractual due date should be classified Substandard.
• Closed-end retail loans that become past due 120 cumulative days and open-end retail loans that become past due 180 cumulative days from the contractual due date should be classified Loss and charged off.{2}

{2 For operational purposes, whenever a charge-off is necessary under this policy, it should be taken no later than the end of the month in which the applicable time period elapses. Any full payment received after the 120- or 180-day charge-off threshold, but before month-end charge-off, may be considered in determining whether the charge-off remains appropriate

I'd say if the only proof they have is dated 1997, the SOL has run. I truely hope your judge sees it that way as well. Best of luck!