Legal Question in Credit and Debt Law in California
I have a trailer that was purchased through a bank loan company in 1996, in 1997 I was informed that it was sold (transferred) to a different bank. Payments were made to the newly acquired bank per their payment requirement until 2000, at this time I could not make the payments any longer so it affected my credit, finally coming off of my credit 12/2010. This week 9/2011 I received a collections notice from a debt collector who apparently got information from the first original bank from back in 1996. Is this possible? Even though it had already been addressed through the second bank? How do I handle this?
Thank you
1 Answer from Attorneys
The quick and easy handling -- tell the new debt collector that you aren't going to pay because the debt is beyond the statute of limitation.
In California, the statute of limitation is 4 years -- if a creditor does not file a lawsuit against you within that time, they lose the right to sue, and the debt becomes legally non-collectable.
A creditor has a right to ASK you to pay a debt that is beyond the limitation period, but cannot SUE you for it.
Douglas A. Crowder, Esq.
Crowder Law Center
350 S. Figueroa Street # 190
Los Angeles, CA 90071
Tel. 800-455-1592
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