I used to live in California and am headed out of state. Does anyone know the collection process? I thought collectors had 4 years to get debt resolved or not at all.
2007-07-28 01:38:59 · 6 answers · asked by Hope 3 in Business & Finance ➔ Personal Finance
Collectors are allowed to continue to collect forever.
However, they may not sue you for the debt after the statute of limitations for your state has passed - this is probably the 4 year limit you have heard of in CA. Other states have different statutes of limitations, so depending on where you move to, they may still be able to sue you after you move.
They also may not report to the credit bureau more than 7 years and 180 days after the delinquency first occurred on the account.
But you can forever be denied credit from that lender if you do not pay. And they can still call you and ask you to pay, until you write to them and request that all contact be by mail only.
2007-07-28 01:52:39 · answer #1 · answered by aj485 5 · 1⤊ 0⤋
In California:
California Statutes of Limitation
Written agreements: 4 years, calculated from the date of breach.
Oral agreements: 2 years.
The statute of limitation is stopped only if the debtor makes a payment on the account after the expiration of the applicable limitations period.
Even though an item drops off your credit report, lenders and/or collection agencies can attempt to collect forever.
The Statute of Limitation (SOL) is the time frame that they have to sue you for the debt. If they sue you after the SOL has ran, you can use the SOL as a defense to prevent them from suing - BUT, this does not stop them from trying to collect the money.
2007-07-28 08:50:15 · answer #2 · answered by mister_galager 5 · 2⤊ 0⤋
Yes, they can still come after you for the money - you OWE them the money.
How about this? Why not just pay off the stupid debt and stop the madness!!!!
Life is too short to go through with collectors calling you all of the time!
The day I said NO!!! to debt was the day I started to win with money.
2007-07-28 10:14:35 · answer #3 · answered by Anonymous · 0⤊ 0⤋
The first 2 answers are correct. Suing to collect is limited by the Statute of Limitations. Collections is limited only by when you PAY.
2007-07-28 12:38:55 · answer #4 · answered by STEVEN F 7 · 0⤊ 0⤋
it is worth the hassle - why not just pay the bill and get the monkey off your back and you will have one less thing to worry about.
2007-07-28 10:10:23 · answer #5 · answered by mister ed 7 · 0⤊ 0⤋
yup. they'll come after you. and your credit.
2007-07-28 08:52:40 · answer #6 · answered by Anonymous · 0⤊ 0⤋