Statute of Limitations for CA

[xpionage]

What is the name of your state? CA

When actually does the 4yr SOL clock start ticking for open-accounts in CA? I have one source that says from the time of the first delinquent record, the other from the last payment. Which one is right? The second seems to make more sense.

In the case that it is from the last payment/transaction is recorded, then one shouldn't make a payment until the 4yrs are expired, right?

Thanks.

[howamidoing]

Originally Posted by xpionage

What is the name of your state? CA

When actually does the 4yr SOL clock start ticking for open-accounts in CA? I have one source that says from the time of the first delinquent record, the other from the last payment. Which one is right? The second seems to make more sense.

In the case that it is from the last payment/transaction is recorded, then one shouldn't make a payment until the 4yrs are expired, right?

Thanks.

Date of last actvity. Actually "One" should pay there bills and try not to use SOL as a way to get something for free....Just my opinion. Im sure someone will disagree. Why would you wait until the SOL has expired THEN make a payment, defeats the purpose.

[Ladynred]

"However, if the obligation sued upon constitutes an open book account, the statute of limitations begins to run from the date of the last entry on the account. Code of Civil Procedure § 337(2). But an open book account becomes closed, and the statute of limitations begins to run, once the account creditor ceases to extend credit on the account and there is no further activity on the account other than payment being made. RNC, Inc. v. Tsegeletos (1991) 231 Cal.App.3d 967, 972."

There's your answer.

[howamidoing]

I thought thats what I said...

[Ladynred]

When the SOL starts varies by state, its not ALWAYS the last payment.

[howamidoing]

Originally Posted by Ladynred

When the SOL starts varies by state, its not ALWAYS the last payment.

When I said date of last activity, I meant last activity in general. Maybe I just wasnt being clear.

[DurangoDAWG]

So if a CC company gives you a CC and you stop making payments, once they stop extending you credit, the account is closed and the SOL starts. So since the account is closed, making a payment does not open the account and restart the SOL ??? And what happens when it is sold to a collectin agency, they do not open it up and extend more credit, they just want you to pay it off. So would payment to the CA restart the SOL?

[Ladynred]

No, not according to that statute and the listed case law cite.

[xpionage]

Thanks for the advice, and it helps me to a point, but I'm still a little confused. Does the SOL start from the time of the last entry or from the time of the account being closed? Or does it just start again when the account is closed?

Also, how can one find the documentation of the date of when the account was closed? I can easily verify the last date of payment/activity on a credit report, but the closed acoutn date doesn't seem to be available.

Is a closed acount the same as a "charged-off" account?

What i'm trying to get at, is if the SOL doesn't start until the account is closed, then in theory a cc company could just keep the account open indefinitely and the SOL would never start.

Thanks,

X

[DurangoDAWG]

Everything I have read on this board leads me to believe the SOL starts the last payment or activity (charge) on the account. A CC company usually will leave it open and charge you late fees and interest for another 6 months or so and then finally chage-off the account and sometimes sell it to a collection agency. But SOL would start from your last payment/charge on the account not the charge-off date.

[yanni72]

Deosn't the SOL begin on either the DOFD or date they stop extending you credit? Isn't the Date of First Default (DOFD) the last date in which you made a responsible payment before the original creditor first reported you to the CRA's (which is when your payment is 30 days late).???

[Ladynred]

In CA it is the DOLA.