Legal Question in Credit and Debt Law in California

The question you ask has several components. One is the choice of venue in the credit card agreement. While most credit card debts can be tied to the state of residence, I have seen some agreements that list the State of Incorporation of the credit card comany.

Another issue is whether or not the credit card company obtained a default judgment against you (Californis Judgments are valid for 10 years for the date of entry of judgment with a possible renewal period).

California Judgments bear interest at 10%. Thus the debt could easily increase over an 8 year period.

I would encourage you to contact an attorney familiar with debt collection issues and seek help with this BEFORE you call the debt collector.

Good luck,

The statute of limitations is 4 years from the breach of the contract. It sounds like you have a claim for violation of the Fair Debt Collection Practices Act. I would see a local attorney about your claims against the collection agency.

The statute of limitations in California is 4 years from the date of default but there are exceptions as when you have been outside the state or country. It is a defense so if you are sued you have to answer the complaint timely and allege your defense (why you are not liable). If a judgment was obtained then the judgment is good for 10 years and acrues interest at 10% per year (not compounded) plus probably includes pre-lawsuit interest, court costs and attorneys' fees. The judgment may be renewed forever if timely renewed before the 10-year expiration. You could have been sued in another state if the terms of the agreement allowed the bank to do that. You need to consult a lawyer, particularly if you are served with a summons and complaint or a copy of a judgment already obtained. The fact that the debt may not be legally collectible does not mean they can't try to collect by calling you. Whether or not such action is a violation of federal or California fair collection practices laws requires more facts but it is possible that they have violated the law, particularly if they told you that they will sue you and they know they no longer have the right to obtain a judgment if you answer the complaint and allege the statute of limitations as a defense. However, the statute of limitations can be waived if not raised as a defense in your answer to the lawsuit. It is not an automatic bar to the collection of an old debt.