RCSTA.1 is the overrun "OERR" bit.

RCSTA.2 is the framing error "FERR" bit.

> IF RCSTA.1 =1 then ' Framing Error Detected

If RCSTA.1 = 1 it would indicate an overrun condition not a framing error.

To clear the OERR bit/condition you clear then set RCSTA.4 "CREN", and not RCSTA.7 "SPEN".

This;

RCSTA.7 = 0 'Disable the USART
RCSTA.7 = 1 'Re-Enable USART

Should be this;

RCSTA.4 = 0 ' Continuous receive disabled
RCSTA.4 = 1 ' Continuous receive enabled