Collection accounts over 4 years old (pay, dispute, credit report, charge)

[rdub2008]

My daughter is applying for a mortgage and needs to write a credit explanation letter. Her only "bad" credit is more that 7 years old from the date of delinquency or the last date of activity. What is the law I can quote regarding the 4 year statute of limitations in California?

[ncole1]

Originally Posted by rdub2008

My daughter is applying for a mortgage and needs to write a credit explanation letter. Her only "bad" credit is more that 7 years old from the date of delinquency or the last date of activity. What is the law I can quote regarding the 4 year statute of limitations in California?

You are confusing two different things. The statute of limitations is the amount of time that a creditor has to file a lawsuit without the debtor being able to use the legal defense that too much time has passed.

This is different from the length of time a default/charge-off will remain on a debtor's credit report.

If the debt requires a letter of explanation, statute of limitations is not the answer. In case you didn't realize it, an "explanation" should be the debtor making a case as to why that default was originally caused by circumstances outside of his/her control that are unlikely to be repeated. In plain English, why did the debtor default in the first place? And why should the creditor believe that it will not happen again? This is what the letter should explain. Bolster with supporting documents. For example, if it was due to a prolonged illness, provide the pertinent medical documents; if it was a layoff, document that as well.

[Pitt Chick]

Originally Posted by rdub2008

My daughter is applying for a mortgage and needs to write a credit explanation letter. Her only "bad" credit is more that 7 years old from the date of delinquency or the last date of activity. What is the law I can quote regarding the 4 year statute of limitations in California?

Any quote regarding that is useless for the reason mentioned above).

Oh, and let your daughter get her own mortgage! Why are you even involved (I hope not to co-sign!)?

[lycos679]

Originally Posted by rdub2008

My daughter is applying for a mortgage and needs to write a credit explanation letter. Her only "bad" credit is more that 7 years old from the date of delinquency or the last date of activity. What is the law I can quote regarding the 4 year statute of limitations in California?

Unless I'm missing something it sounds like you are saying that her credit reports are reporting something older than 7 years. Yes? If so, she just needs to dispute as too old to report.

As the other poster mentioned, the 4 yr SOL is the time frame in which you can be sued.

[beer belly]

My Wife and I were in the same situation with a company that we bought an item from....changed our mind, and told them we would refuse delivery and return. Years later it shows up while trying to get a mortgage....ended up paying for the items we refused delivery on and getting a letter of satisfaction on the debt.....had to pay interest also.