Statute of Limitations for Credit Card Debt
Author: archive
Joined: 23 Jul 2004
Posts: 5007
Posted: Thu Jan 13, 2005 1:35 am
Post subject: Statute of Limitations.
Michael
Date: 7/10/2000 2:36 am CDT
Hello all:
After how many years does a debt become legally uncollectible, under the state laws of California?
Thanks: Michael.
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Author: archive
Joined: 23 Jul 2004
Posts: 5007
Posted: Thu Jan 13, 2005 1:35 am
dave
Date: 7/10/2000 2:22 pm CDT
Michael--
the statute of limitations in California for most consumer debt (founded on a writing of some kind or an open book account)such as a credit card obligation is four years from the date of default. This means that the creditor must file a lawsuit within this period. There are some provisions for extending the time under specified circumstances.
You should talk to a lawyer to make sure that the four year period would apply to the situation you are asking about.
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Author: archive
Joined: 23 Jul 2004
Posts: 5007
Posted: Thu Jan 13, 2005 1:35 am
Rainbow Tango
Date: 7/16/2000 2:33 am CDT
SEVEN YEARS from day it is recorded on TRW., 4 years only applies to rare cases, to much to explain in detail.
Take care. Director Rene - West Coast Div.
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Author: archive
Joined: 23 Jul 2004
Posts: 5007
Posted: Thu Jan 13, 2005 1:36 am
dave
Date: 7/16/2000 11:49 pm CDT
rainbow--
you are confusing the statute of limitations with the period that a derogatory record remains reported to the credit bureaus. The SOL refers to the period during which the creditor must file suit which is separate from how long the record is reported.
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Author: archive
Joined: 23 Jul 2004
Posts: 5007
Posted: Thu Jan 13, 2005 1:36 am
VENUS
Date: 7/18/2000 4:30 pm CDT
PLEASE REMEMBER THAT EVEN AFTER SEVEN YEARS THE CREDITOR HAS THE RIGHT TO REPORT YOU FOR ANOTHER SEVEN YEARS IF THEY SO CHOOSE.
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Author: archive
Joined: 23 Jul 2004
Posts: 5007
Posted: Thu Jan 13, 2005 1:36 am
dave
Date: 7/20/2000 4:20 pm CDT
a creditor has no such right. this is called "re-aging" and it is illegal under the fair credit reporting act. 7 years is the absolute limit for reporting derogatory information such as late payment and charge-offs. The only ways this period might arguably be extended would be if the creditor sues and obtains a judgment or the debtor files bankruptcy.
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Author: archive
Joined: 23 Jul 2004
Posts: 5007
Posted: Thu Jan 13, 2005 1:37 am
bdove
Date: 7/20/2000 9:20 pm CDT
Does anyone know how long a check can be reported as derogatory information on your credit report. Is this also subject to the statue of limitations.
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Author: NightStar
Board Monitor
Joined: 07 Nov 2003
Posts: 2634
Location: Illinois
Posted: Sat Jan 22, 2005 9:38 pm
Dave is correct for concerning SOL & Reporting periods.
For reporting accounts remain with the credit bureau 7 years from charge off date when the account has become default, 10 years reporting for positive account from close date.
There are only a few exceptions to extending of the reporting,
1. If a judgment is renewed - then it can be entered in with the credit bureau as a new listing. If just judgment is not renewed then it will expire 7 years from file date.
2. If a student loan is defaulted these can remain forever on the credit report, each individual collection agency can report the account 7 years each.
3. Tax Liens remain forever if unpaid, once paid it goes 7 years from the paid date.
Statute of Limitations differs for each state, and California has special rules over other states, that they deem it illegal for collection agencies to continue collection efforts after a debt has expired the 4 year period.
Most other states, it just means that the collection agency would loose in court when SOL defense is presented, but that they could still send out dunning letters forever if they wanted, just that they have no teeth at that point to enforce collection of the account.
Best Regards,
Pammila Phillis
Board Monitor
U.S. Citizens for Fair Credit Card Terms, Inc.
http://www.cardratings.com
501-663-0314 PH
501-663-0033 FX
View our latest credit card ratings!
Joined: 23 Jul 2004
Posts: 5007
Posted: Thu Jan 13, 2005 1:35 am
Post subject: Statute of Limitations.
Michael
Date: 7/10/2000 2:36 am CDT
Hello all:
After how many years does a debt become legally uncollectible, under the state laws of California?
Thanks: Michael.
View our latest credit card ratings!
Author: archive
Joined: 23 Jul 2004
Posts: 5007
Posted: Thu Jan 13, 2005 1:35 am
dave
Date: 7/10/2000 2:22 pm CDT
Michael--
the statute of limitations in California for most consumer debt (founded on a writing of some kind or an open book account)such as a credit card obligation is four years from the date of default. This means that the creditor must file a lawsuit within this period. There are some provisions for extending the time under specified circumstances.
You should talk to a lawyer to make sure that the four year period would apply to the situation you are asking about.
View our latest credit card ratings!
Author: archive
Joined: 23 Jul 2004
Posts: 5007
Posted: Thu Jan 13, 2005 1:35 am
Rainbow Tango
Date: 7/16/2000 2:33 am CDT
SEVEN YEARS from day it is recorded on TRW., 4 years only applies to rare cases, to much to explain in detail.
Take care. Director Rene - West Coast Div.
View our latest credit card ratings!
Author: archive
Joined: 23 Jul 2004
Posts: 5007
Posted: Thu Jan 13, 2005 1:36 am
dave
Date: 7/16/2000 11:49 pm CDT
rainbow--
you are confusing the statute of limitations with the period that a derogatory record remains reported to the credit bureaus. The SOL refers to the period during which the creditor must file suit which is separate from how long the record is reported.
View our latest credit card ratings!
Author: archive
Joined: 23 Jul 2004
Posts: 5007
Posted: Thu Jan 13, 2005 1:36 am
VENUS
Date: 7/18/2000 4:30 pm CDT
PLEASE REMEMBER THAT EVEN AFTER SEVEN YEARS THE CREDITOR HAS THE RIGHT TO REPORT YOU FOR ANOTHER SEVEN YEARS IF THEY SO CHOOSE.
View our latest credit card ratings!
Author: archive
Joined: 23 Jul 2004
Posts: 5007
Posted: Thu Jan 13, 2005 1:36 am
dave
Date: 7/20/2000 4:20 pm CDT
a creditor has no such right. this is called "re-aging" and it is illegal under the fair credit reporting act. 7 years is the absolute limit for reporting derogatory information such as late payment and charge-offs. The only ways this period might arguably be extended would be if the creditor sues and obtains a judgment or the debtor files bankruptcy.
View our latest credit card ratings!
Author: archive
Joined: 23 Jul 2004
Posts: 5007
Posted: Thu Jan 13, 2005 1:37 am
bdove
Date: 7/20/2000 9:20 pm CDT
Does anyone know how long a check can be reported as derogatory information on your credit report. Is this also subject to the statue of limitations.
View our latest credit card ratings!
Author: NightStar
Board Monitor
Joined: 07 Nov 2003
Posts: 2634
Location: Illinois
Posted: Sat Jan 22, 2005 9:38 pm
Dave is correct for concerning SOL & Reporting periods.
For reporting accounts remain with the credit bureau 7 years from charge off date when the account has become default, 10 years reporting for positive account from close date.
There are only a few exceptions to extending of the reporting,
1. If a judgment is renewed - then it can be entered in with the credit bureau as a new listing. If just judgment is not renewed then it will expire 7 years from file date.
2. If a student loan is defaulted these can remain forever on the credit report, each individual collection agency can report the account 7 years each.
3. Tax Liens remain forever if unpaid, once paid it goes 7 years from the paid date.
Statute of Limitations differs for each state, and California has special rules over other states, that they deem it illegal for collection agencies to continue collection efforts after a debt has expired the 4 year period.
Most other states, it just means that the collection agency would loose in court when SOL defense is presented, but that they could still send out dunning letters forever if they wanted, just that they have no teeth at that point to enforce collection of the account.
Best Regards,
Pammila Phillis
Board Monitor
U.S. Citizens for Fair Credit Card Terms, Inc.
http://www.cardratings.com
501-663-0314 PH
501-663-0033 FX
View our latest credit card ratings!
posted by CardRatings.com at 7:00 PM
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