Legal Question in Credit and Debt Law in California

SOL for Pursuing Involuntary Collection
My understanding of the verbiage contained in CCP 337 as it applies to credit card debt is that�

� Legal action remedies (such as a judgment) must be pursued within the 4 year statute of limitations (SOL)
� SOL starts running after cause of action (the event that causes default status, such as failure to pay the amount due)
� SOL period is calculated from date of breach (the 1st payment delinquency) until the account is brought current
� If the account is never brought current within the 4 year period, the SOL has run and expires (a partial payment towards the delinquent amount does not toll (stop) the running of the SOL as long as the account is never brought current).
� Date of last activity, excluding the payment delinquency, is not a cause of action that resets the SOL in the event the activity occurs subsequent to the payment delinquency.
� If the account is brought current at any point within the 4 years, the SOL is tolled and resets the clock.

Is my understanding of this provision accurate or faulty? I�ve seen so many contradictory interpretations on this provision and am trying to get clarity. Please advise.

Asked on 7/07/06, 7:33 pm

Robert F. Cohen Law Office of Robert F. Cohen

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Re: SOL for Pursuing Involuntary Collection

The statute of limitation starts running from the date of default. However, if a payment is made during the next four years, the clock resets.

Answered on 7/07/06, 7:47 pm

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