When does the stature of limitation begin?

Question

When does the stature of limitation begin? Is from the date of the original loan? I had a credit card in 2001 and it is a charged off but I made a mistake of making payments to a collection agency.

Answer 1

Collecting SOL's are generally different from state to state.

I went through some of your past answers to see if I could find out what state you are in so I could give you a better answer.

I saw that you are in CA.?

If so, you are past the collecting SOL. For credit cards it is 4 years (and in some cases it is 2 years)

The CA. statute that places them in the 4 year SOL --

§337
Within four years:
1. An action upon any contract, obligation or liability founded upon an instrument in writing, except as provided in Section 336a of this code;
2. An action to recover
(1) upon a book account whether consisting of one or more entries;
(2) upon an account stated based upon an account in writing, but the acknowledgment of the account stated need not be in writing;
(3) a balance due upon a mutual, open and current account, the items of which are in writing; provided, however, that where an account stated is based upon an account of one item, the time shall begin to run from the date of said item, and where an account stated is based upon an account of more than one item, the time shall begin to run from the date of the last item.


Making a payment, to either the original creditor or a collector, after an account is closed to any further charges by the original creditor, will NOT re-set the collecting SOL.


The reporting period starts the first time you became 30 days late and never brought the account current leading to the charge off. It remains on your reports for 7 years from that date. It must be reported accurately and if not, you have a legal right to dispute it with the CRA's.


Being past the collecting SOL means you have a legal right to not pay and only pay if you want to.
It also means that the collector cannot legally sue, but that does not stop the majority of collectors.

It would have to be up to you to inform them that the account is past SOL and no longer legally collectible.

Or, if you do nothing and they sue or they have already filed, it is up to you to use the SOL defense in your answer.

You might do some reading in the links I have provided in my profile. To the FDCPA, FCRA, etc.
CA. also has their own version of a FDCPA. I don't have a link listed for that, or the CA. Penal Code, but you can find it through the last link I have listed in my profile.

edit++++++++
No I didn't miss the part about payments being made to a collection agency. I stand by what I said - the collecting SOL in CA. cannot be re-set if payments are made after the account closes to any further charges.

(along with §337, shown above)
+
"However, if the obligation sued upon constitutes an open book account, the statute of limitations begins to run from the date of the last entry on the account. Code of Civil Procedure § 337(2). But an open book account becomes closed, and the statute of limitations begins to run, once the account creditor ceases to extend credit on the account and there is no further activity on the account other than payment being made. RNC, Inc. v. Tsegeletos (1991) 231 Cal.App.3d 967, 972."
+

+++
The collecting SOL would be 4 years if the OP actively sought credit from the original creditor.
It would be 2 years if the OP "did not" actively seek credit but rather the original creditor actively sought out the OP to give credit to.

§ 339.
Within two years:
1. An action upon a contract, obligation or liability not founded upon an instrument of writing, except as provided in Section 2725 of the Commercial Code or subdivision 2 of Section 337 of this code;

Answer 2

OK, time to correct the wrong answers again....

Echo is right, but she missed the part where you said "made a mistake of making payments to a collection agency."....

The "statute of limitations" on debts begins from the date of the last transaction, purchase, or payment. If you make a payment to the collection agency, that payment restarted the SOL for your state. If, as Echo says, you live in California, the SOL will expire 2 years after you made the last payment to the collection agency.

Smoovie, read my past answers regarding the credit reporting time.....it's only 7 years. The "6 month" part means they can not BEGIN to report this until 6 months after the delinquency date....but it is not added to the total time. This was clarified in a commission report.

Answer 3

Now when you refer to the statute of limitations, keep in mind that there's the FCRA 7½ year statue of limitations of reporting debt, and a statute of limitations for collecting debt which can vary by state. The statute starts on the date when the debt first went delinquent.

Answer 4

The Statute of limitations runs frm the date of last charge or last payment. If the statute had already run out, making a payment does not re-start it. But if the statute has not expired, the it does extend it.


See this page for your state.

http://www.bankrate.com/brm/news/cc/20040116b2.asp#mt.asp

Answer 5

I think you mean STATUTE of limitations. A statute is a law. Whereas stature implies or refers to someones position as in a company's chain of command.

The statute should begin the day you borrowed your loan in most states.