My father has a credit card debt for about 4,500 from I am guessing over 6 to 7 years ago. He is receiving letters threatening a lawsuit. I was wondering if any one knows the legal time limit in California to collect a debt? I was also wondering what a lawsuit can do, he and my mother a disabled, and live off a state check which they barely get by on. I already give them money and cannot afford to pay this bill. I am trying to figure out what legal rights we have in case we do have to go to court.
2006-07-12 16:21:28 · 4 answers · asked by Frank A 3 in Business & Finance ➔ Credit
California statute of limitations
Open Acct.: Reduced to writing 4
Open Acct.: No writing 2
Written Contract: 4
You need to find out when this account went delinquent.
Have your father order his credit reports and see what the date of last activity (DOLA) says. Only use the information from the original creditor tradeline to find the DOLA. DO NOT go by any dates the collection agency has placed on there.
If it is longer than 4 (or 2*) years ago, your father is no longer in the statute of limitations (SOL) in Ca. for them to collect. Even though he may be out of SOL, the collection agency may continue to try to collect. But, if he is out of SOL it would be illegal for them to take him to court on a time barred debt. If they do, he can file counterclaims against them.
I would also suggest sending the collection agency a debt validation letter. After they have responded with validation, send them a SOL letter - ONLY if you are positive he is out of SOL.
Some may say just to send a SOL letter without validating. I "always" recommend validating first for many reasons. The major reason is to "prove" that the collection agency "knows" full well that the account is past SOL and has proven it in their validation attempt.
Another reason is that if the collection agency has violated, either on credit reports or in validating, it gives a person more counterclaims to file if the collection agency should sue.
If your father is out of SOL, he is not legally bound to pay.
The above information is from the assumption that it has been 6 or 7 years since your father has paid on the debt. Or at least longer than 2* years if no written agreement with original creditor and 4 years if there was an agreement in writing with the original creditor. (many times, credit card accounts to not have a signed agreement)
I have included a couple links for you to check out.
The first one takes you to a site that shows and explains your state statutes concerning the statute of limitaitons etc.
You can also find out Ca.'s exemptions on that site.
The second link is for a free do it yourself credit repair forum.
You can find letters etc on dealing with the collection agency. Plus there is a very large support base of people who are going through, have been going through what your father is going through. Do some reading in the newbie forum and the credit forum. If you have any questions, feel free to post a thread and ask.
2006-07-12 18:28:40 · answer #1 · answered by echo 7 · 0⤊ 0⤋
I don't live in Ca but in my state ,the statute of limitations on this is 4yrs....companies do not usually add fees each month for 6-7 yrs as suggested above....they write it off as bad debt in 6-9 months and then may file a lawsuit to obtain a judgment. If your parents have nothing, they will not bother. If they have property , they just might. You would know if they had a judgment against them because they would have been served papers and had to appear in court. If not, I would call the company and tell them to stop harassing your parents. (Once a judgment has been issued, it can be renewed indefinitely. ) DO NOT PAY ANYTHING...once you make any kind of payment, they CAN AND WILL start the process all over again and the four years begins again. Get some info from your courthouse on stat of limitations for contracts before calling, It's important to know your rights BEFORE you call them. You are not responsible for paying this debt ever...don't let them tell you that. Keep in mind that these people are unscrupulous and will do anything to hurt you.
2006-07-12 17:14:40 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Credit cards are considered to be "open book" type accounts which have a 4 year statute of limitations from the date of the last entry on the account. Credit card companies are notorious for adding monthly charges indefinitely to prevent the statute of limitations from tolling. My recommendation is call the creditor and negotiate for them to write off some of this debt in consideration of a small cash payment at this time. They may be willing to negotiate with you to close the account in light of your parents' disabilities and low income. Also, even if they get a judgment against them and they don't own any property they know they will never collect the debt and may not waste their time pursuing them.
Hope that helps
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2006-07-12 16:56:03 · answer #3 · answered by ocean11law 2 · 0⤊ 0⤋
properly you're able to do 2 issues, one is request that each and each physique communication is performed in writing, the 2nd is greater relaxing. you are able to say particular shop calling me like my subject has replaced in one day, hello we can communicate, i will repeat myself each and each day or weekly as I even have not hit the lottery heck we can grow to be maximum suitable acquaintances, and replace Christmass taking part in cards, yet that may not substitute the undeniable fact that i don't have the funds today. The latter confuses them because of the fact they assume yelling and so on.. Get there call next time the call say hello is this Bob? sorry issues have not replaced when you consider that final week, if no longer ask to talk with them, heck in case you would be harrassed have some relaxing with it
2016-12-14 07:27:52 · answer #4 · answered by Anonymous · 0⤊ 0⤋