Legal Question in Credit and Debt Law in California
Is there a Statue of Limitations on-credit card, loan, and medical bills?
Hello, I read somewhere there is a Statue of Limitations on debts-ie credit card, non secured loans, and medical bills etc. of 4 years if no payments were made. Recently I was told if your debt is bought by a collection agency then the four years starts over again. Is this correct?
Thanks for your time.
3 Answers from Attorneys
Re: Is there a Statue of Limitations on-credit card, loan, and medical bills?
The Statute of Limitation does not start all over again if the debt is sold. Sometimes, a lawsuit can be filed against the creditor and collection agency if the statute of limitations has run. Please contact my office at 714 363 0220 to set up an appointment. I would like to review your written documentation including any letters, notices, and lawsuits. We handle cases throughout California. We can review your documentation by fax and speak with you by phone.
Re: Is there a Statue of Limitations on-credit card, loan, and medical bills?
No, that is not true. If it was, all they would need to do is keep on giving it to a new collectiona agency every four years.
Re: Is there a Statue of Limitations on-credit card, loan, and medical bills?
We get this question a lot, as many unscrupulous collection agencies make bogus claims such as this. The statute expired after four years. Do not make a payment, however, or you will reset the statute. The collection agency is violating the Fair Debt Collection Practices Act (FDCPA) and you may have the right to sue them in small claims court for $1000. Google FDCPA.
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