Wednesday, October 18th, 2017

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Statue of Limitations & Time Debts Stay on Credit Report

Dear Melissa,
I want to repair my credit and raise my score and was reading about states having a statue of limitation. With this being the case can I have accounts that have reached the statue of limitations removed from my credit? And with this statue of limitation, is it based on my place of residency or where I lived when a debt was created?

I just want to totally repair my credit but I do have some debts on my credit report due to my ex-husband that are being placed on me. I’m too old to have messed up credit and there are things I want to do and can’t because of this.   I’m just fed up, so what are all my options? Please help….

Lana F.

Dear Lana,

The statute of limitations varies from state to state and will be effective for the state that the debt was created in.  If you have moved since the debt was created, it will not change.  If you lived in Philadelphia at the time of the debt, the Pennsylvania statute of limitations will be enforced.

Here’s the deal with the statute and your credit report.  If a consumer applies for a credit card, receives it, and defaults on it, the statute kicks in once it is deemed delinquent.  Generally this is 180 days after default.  If the statute of limitation on an open account, the category that a credit card falls into, the account may be reported to the consumer’s credit all the way until the statute expires, and will remain on the credit report for 7 years.

For example, if the account is reported one day before the 3 year statute expires, it can be placed on your credit and does not expire on your credit report when the statute is over.  It will still remain there for the 7 years. 

However, if the account was reported to your credit after the statute has expired, or has remained for longer than 7 years, then this can be disputed with the credit bureaus and removed.

Melissa Douros Dovco Collection Solutions, Inc.

As the owner of Dovco Collection Solutions, Inc., Melissa Douros uses her eight years of being a collections specialists to offer advice and answer questions pertaining to debt collection. With running her own successful collection agency, she seeks to keep debt collectors accountable for their actions and in line with the law.

Do YOU have a question for Melissa? Email her at melissa@dovcocs.com

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