Legal Question in Credit and Debt Law in California
Statue of Limitation on utility bills
In December 2001 I purchased a new home and moved out of Covina, Ca. In January 2002, I closed my utility bill with the City of Covina and paid what I believed was a final bill. I received a call from a collection agency on August 03, 2004 and they stated that I owed $50.00 for a ''final'' utility bill that was ''sent'' out in January 2002. I contacted the City of Covina and they stated that they had sent out a bill in January 2002 and July 2002 to my new address. I never received anything at the new address. The collection Company stated that they would place a hit on my credit if I did not pay the bill within 30 days.
The City worker I spoke to told me that they did not send anything else out until it was sent to the collection agency because they were ''short handed''. Can they legally wait two and a half years and then ask for payment? Is there a statue of limitations for collection of this bill. I do not feel that it is owed to them. I think they want to generate revenue. Thank you for your time.
2 Answers from Attorneys
Re: Statue of Limitation on utility bills
Dear Sir,
I've read your query respecting the utility company's late bill. Respecting a statute of limitations ("SOL") for the collection on the account, there is no SOL per se for collection attempts. The SOL for litigation on this type of account (referred to as an "account stated" or an open book account) is four years. However, even if this SOL had run, it would not bar them from either assigning it to collections or from filing a suit to attempt to collect.
The SOL is simply an affirmative defense that you can raise if a suit is filed against you . . . in fact, if you don't raise the defense at the first possible chance in court, then it is considered to be waived. That's the long answer. The short answer is that they can attempt to collect the $50 - your only real defense is to review the bill and see if it is accurate.
This communication does not establish an attorney-client relationship. Any communications you may forward to this firm are not covered by the attorney-client privilege until an attorney-client relationship is established.
Best regards,
Re: Statue of Limitation on utility bills
Please fax your correspondence to me at 714 363 0229 and include your phone number. I will call you and advise you if you have a case or what to do to resolve your problem.
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