Legal Question in Credit and Debt Law in California

Need answers to questions regarding debt collection

I had a credit card debt that was supposedly settled by a laywer I hired through Accord and Satisfation Laws (federal and CA statutes that applied) in 11/99. The Bank eventually charged off the debt on 6/22/00. I hadn't heard a thing about the situation until 7/15/04 from a collection agency trying collect $17,795. They sent me another letter saying if I paid them in 2 weeks, they would accept $7135.67 (40% of original request) for a full settlement offer on the expired and closed account. An attorney friend advised me that he believed the statue of limitations on such a claim is four years from either the last payment or when the account was charged off by the bank which would have been 6/22/04 at the latest. Therefore, I believe that the time frame (statute of limitations has expired and they have no legal rights to claim anything or sue me for it. I have never been sued on this matter and there has never been any judgment issued against me at all. When I called the collection agency today in Florida, they said that ''I am liable for it for the rest of my life and they can come after me forever.'' They wanted me to send them paperwork from my old lawyer from 1999 & 2000. What are my options and please advise me. Eddie


Asked on 7/19/04, 8:15 pm

3 Answers from Attorneys
Chris Johnson Christopher B. Johnson, Attorney at Law

Re: Need answers to questions regarding debt collection

Sounds like you're right and they're wrong, but I'd have a lawyer look over what was done in 2000 just to be sure. Most debts, especially unsecured credit card debts, are not valid "the rest of your life" and "forever", unless there's a court judgment recorded and renewed. If you haven't figured it out yet, collections folk are not always honest or up on the law.

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Answered on 7/19/04, 8:40 pm
Ken Koenen Koenen & Tokunaga, P.C.

Re: Need answers to questions regarding debt collection

One option is to sue them for illegal collection practices. The SOL is 4 years from the last activity on the account. If you have a signed document showing the settlement, you might be able to go after the bank, too.

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Answered on 7/19/04, 8:41 pm
Larry Rothman Larry Rothman & Associates

Re: Need answers to questions regarding debt collection

The statute of limitations is generally 4 years. If you fax me your documentation and letter from the collection agency to 714 363 0229 and provide me with your phone number, I may be able to stop them from bothering you again.

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Answered on 7/19/04, 11:06 pm


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