Legal Question in Credit and Debt Law in California

If you incurred the debt while living in California, then California law will apply. The debt is over 9 years old and the statute of limitations for pursuing a debt is 4 years, unless a judgment was obtained. You verbal acknowledgment of the debt is probably not enough to reset the SOL.

The next time they call, you should tell them you do not owe the debt and they must stop calling you. I would check your credit report once in a while to make sure they are not improperly reporting the debt.

Most likely California law applies if you lived in California at the time and signed the agreement in California. However, a creditor can insert a clause in the contract stating that the law of another state applies and even put in that the courts in other states will decide the case. Those clauses are generally valid but there are legal exceptions depending on the circumstances. I dout that a debt that old would be valid under the laws of any state anyway and certainly not under California law. Just tell the person you checked with a lawyer and that you are not obligated to pay and won't pay and to stop calling you. Tell the person you are going to record the conversation and do it if necessary. Agreeing to make a payment does not revive the debt. It is just harrassment and best thing is just to hand up on such people and not worry about it.

There are defenses--including statutes of limitations--and counterclaims against debt collectors. However, collectors may repeatedly hound notwithstanding inability to collect. Even if you assert a valid defense, you may face ongoing harassment. It's cheap to make a phone call (or three) and creditors besiege debtors because it works. Looking beyond their ultimate ability to collect upon a debt, consider: 1) The effect of an outstanding debt upon your credit and ability to take upon new loans, and its effect upon your peace of mind; 2) Whether you can reasonably repay it without compromising your welfare and that of your dependents (and whether such sacrifice is merited given hostile, abusive collection tactics); and 3) other legal remedies that may afford a comprehensive solution to debt (e.g. federal bankruptcy).

This answer (by San Diego bankruptcy attorney, Asaph Abrams) doesn�t address all facts & implications of the question; it�s general info, not legal advice to be relied upon. It creates no attorney-client relationship; it may be pertinent to CA and/or its Southern District Bankruptcy Court only, and it�s independent of other answers. It may be time sensitive, as in past the �Use by� date: laws and case law change. Hire legal counsel before acting or refraining from bankruptcy/legal action. www.BankonitSD.com