Legal Question in Credit and Debt Law in California
Credit Card Debt First Delinquent
Is Credit Card Debt First Considered Delinquent, the first date that it is reported to a Credit Agency? In other words, on a Credit Report, the Statues of Limitation starts from when?
Thanks,
C.P.Williams
2 Answers from Attorneys
Re: Credit Card Debt First Delinquent
The four-year statute of limitation on a breach of contract action begins to run when payment is delinquent. If a payment is due, say, by April 28, and a payment is not made, that's when the creditor would contend the clock would start running. Of course, if one made a payment in the intervening time, the clock restarts.
Re: Credit Card Debt First Delinquent
How the matter is reported on your credit report has no bearing on the statute of limitation. If your payment is due on May 1, 2006 and you fail to pay, that is when the breach occurs. Some attorneys might say that the creditor has 4 years from the date of the last payment to sue. I disagree and would say that you have 4 days from the date of the breach to sue.
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