Re: How to find out "cause of action" states? re: Reage

Posted by Boadicea (66.149.179.202) on June 15, 2004 at 17:55:30:

In Reply to: How to find out "cause of action" states? re: Reage posted by Houdi on June 15, 2004 at 16:06:40:

You are confusing apples with oranges.

Cause of action has to do with the time limit (SOL) within which someone can sue you for a debt and is governed by state law. It has nothing to do with "re-aging" per se.

Re-aging is a term used with credit reporting, and is governed by Federal law under the FRCA. You can read the FCRA rules here: http://www.ftc.gov/os/statutes/031224fcra.pdf

If someone is claiming that the cause of action began when they purchased the debt, that is where your GA statute would kick in. If you made payments and never caught up, the cause of action began when the account first defaulted. But if you caught up and then defaulted again, the latter date becomes the date you use to calculate the SOL.

In other words, if you were current on the account and the statements you got do not show past-due amounts, it doesn't matter if you had a credit line available. The OC did not have a cause of action against you.

But if the statements show that you had a past-due balance and they continued to charge you late fees, then clearly the account was in default at the time even with your continued payments. The cause of action began when the OC first realized that you were in default, not when you quite paying.

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