Legal Question in Credit and Debt Law in California

Lawsuit from an old credit card debt

I was served with a lawsuit from a collection agency for a 5 year old credit card debt. These people buy debt from credit card companies and sue them. The credit card limit was $500, but they are suing me for over $2,300 and keep racking up interest. According to my credit report, this debt has been paid, not charged off and it doesn't show up anywhere else on my credit report. But I do not have any old paperwork from this company and I don't think I paid them. I called the company that is suing me and asked to settle for $1000 because I just had a baby and don't have time to go to court, but they wouldn't accept. Where do I start? How good do my chances look if I take this to court. I am thinking that the judge would be fair and maybe let me just pay the money I owe, without so much interest, but I don't want to end up owing court costs and the debt.


Asked on 6/08/07, 8:19 pm

3 Answers from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: Lawsuit from an old credit card debt

The legal time limit to sue is four years. But when you offered to settle, you reset the clock. Too bad you didn't get legal advice first. The judge will be fair and will award them the full amount plus interest which is what you owe.

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Answered on 6/08/07, 9:24 pm
Jonathan Stein Law Offices of Jonathan G. Stein

Re: Lawsuit from an old credit card debt

Why did you call them and make them an offer BEFORE coming here? The statute of limitations is 4 years. You may have reset the statute of limitations, but they would have to file a new lawsuit. You have to decide if it is cheaper to fight this than it is to pay them and move on with life at this point.

You can get more information at my blog, www.californiadebtblog.com

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Answered on 6/08/07, 11:00 pm
Larry Rothman Larry Rothman & Associates

Re: Lawsuit from an old credit card debt

While you have a defense based upon the Statute of Limitations, you may also have a Federal Claim against the company based upon the Federal Fair Debt Collection Act. We would need to review your documents to see if you have a claim.

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Answered on 6/11/07, 11:05 am


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