Statutory of Limitation for Credit Card

[wine4me]

What is the name of your state? California

I believe I have a credit card debt of $6000 when I was living in NY 13 years ago. Collection agency just contacted me today asking me to settle the loan for $6000 although total including accrued interested has come to $10k. I am now living in California. Can you pls help and tell me if I have to pay for this? Should I get an attorney? What would be the appropriate action to take at this stage?

Thank you very much in advance.

 

[Zigner]

When did you leave NY?

 

[Ozark_Sophist]

SOL has tolled. Do nothing other than pull your credit report to make sure it has not been reported.

 

[jinky]

If it has been reported then send a letter to the creditor just stating that it is SOL and that demand that they remove the derogatory mark on your reports. Send CMRRR(Certified mail receipt return requested). One other thing, get copies of all your reports from the credit reporting agencies, not free reports.

 

[wine4me]

Thank you all for the advice.

I left NY in 1994 and went to live in Australia for seven years. My family came back in 2001 and lived in NY for one year until 2002, then moved to California and have been living here ever since. I have not made any payments to the credit card since I left USA.

The collection agency was quite threatening over the phone so I'm a bit worried and was wondering if I need an attorney to handle this case for me.

I will check my credit report and see if there's any negative reports on it.

 

[Zigner]

It may not be on your credit report, but the SOL was likely tolled during your absence(s). That means that you can still be sued.

 

[Chien]

send a letter to the creditor just stating that it is SOL

Thanks, Zigner.

Whatever the outcome for the OP, the fact that the NY SOL is 6 years makes this thread an excellent example of the danger in unwarranted assumptions based on insufficient data resulting in misleading advice.

 

[wine4me]

I am sorry for asking an ignorant question, what does it mean "tolled"?

I am hoping I do not have to hire an attorney to save myself some money. But if I am sued, do I need an attorney? Thanks.

 

[You Are Guilty]

Luckily for you (and the rest of this board) the idiot spewing the bad advice has lost his posting privileges. "Tolled" means "stopped". In other words, while there is a 6yr SOL for the debt in NY, once you left the state (for more than 4 months), then that time you spent away doesn't count towards the SOL. Most states have a similar rule - it prevents people from moving to another state to avoid paying their debts.

Here's the statute:

Defendant's absence from state or residence under false name.
If, when a cause of action accrues against a person, he is without the
state, the time within which the action must be commenced shall be
computed from the time he comes into or returns to the state. [highlight]If, after
a cause of action has accrued against a person, that person departs from
the state and remains continuously absent therefrom for four months or
more, or that person resides within the state under a false name which
is unknown to the person entitled to commence the action, the time of
his absence or residence within the state under such a false name is not
a part of the time within which the action must be commenced[/highlight]. If an
action is commenced against a person described above, the time within
which service must be made on such person in accordance with
subdivisions (a) and (b) of section three hundred six-b of this chapter
shall be computed in accordance with this section. This section does not
apply:
1. while there is in force a designation, voluntary or involuntary,
made pursuant to law, of a person to whom a summons may be delivered
within the state with the same effect as if served personally within the
state; or
2. while a foreign corporation has one or more officers or other
persons in the state on whom a summons against such corporation may be
served; or
3. while jurisdiction over the person of the defendant can be obtained
without personal delivery of the summons to the defendant within the
state.

Based on my quick reading of your posts, now that you are in CA, it appears there are several years left on the SOL and you can be sued on this debt. (Doesn't mean you will be, only that there is no viable SOL defense for you if you are).

As far as whether you need an attorney or not - that's entirely up to you. I always recommend hiring one if you can (and even if you can't). However, of all the types of lawsuits out there, this is probably the one people are most likely to be able to handle themselves (although it does require you do your 'homework'. Don't ever expect to walk into court not knowing anything and coming out with a win, even if you have the best defense in the world).

Good luck.

 

[TigerD]

The best result for everyone on this debt is to simply negotiate a settlement.

DC

 

[Chien]

I had started to respond and saw that YAG had offered assistance. But I also agree with DC and also think this should be settled.

OP – if you’re uncertain about some of these terms, it would be cheap insurance to at least consult with an attorney and discuss the specifics of your situation. That $4K may still be on the table or a lower figure available than $10K can be put on the table. If you can be sued and you are, they will sue you for the $10K. If you owed the original debt and have no defense, the judgment they could get will be for much more than $10K.

Judgments last 10 years in CA and can be renewed. CA provides very extensive options for enforcement.

 

[wallock]

I would at least TRY claiming, via certified mail, that you believe it is out of the SOL. Many debt collectors, to my knowledge, buy up these debts for pennies just to see if they can get someone to pay... if they think they won't be able to, they'll just give up.

I don't have debt problems, so don't take my word for it.

 

[GulfBreeze]

The best result for everyone on this debt is to simply negotiate a settlement.

DC

once again, DC offers settlement as the best offer. to make a long story short, when i was defending myself in this last suit for debt, i mentioned to the judge about the "i lived in az" and the judge said, it doesnt matter, you live in florida now...i kinda chuckled because i knew of the borrowing statute and used it. apparently the judge can only base their findings on their law..not the state you resided in at the time of the debt. i asked her then what the borrowing statute meant. with my use of the applicable law stated in the terms and condition along with the fact i entered in the debt while living in az, florida court would have to allow forum shopping and apply another state's laws...well, some will, some will act stupid. the bottom line is, you, if you have no idea of moving back to NY, will not be frozen in time forever with tolling. had you moved back to NY and they filed, they could. but since they are going after you in CA, then they can not apply the law that you left and the time froze on the sol. it would be a defense to the NY sol if you had stayed there long enough, but since you left, the sol of your present state applies. also since they chose to file in CA. you have been in CA if I am correct, long enough to apply their SOL. you have plenty of leverage to pressure them into a dismissal. i would seriously get a lawyer if you don't understand it. just dont be quick to take ANY advice here from me or the likes of CHIEN or DC. You will get counter-dicting suggestions.

 

[Chien]

you have been in CA if I am correct, long enough to apply their SOL. you have plenty of leverage to pressure them into a dismissal.

OP – That is not accurate and is not good law. That is not a "counter-dicting suggestion"; that is fact. There is no “long enough” exception to the CA counterpart of the statute posted by YAG and, without it, no basis for thinking that “you have plenty of leverage to pressure them into a dismissal” for that reason. I’ll leave it to YAG to address any “expiration date” authority for the NY statute, if there is one and if he chooses. GulfBreeze will be delighted to prove otherwise, and will provide statutory authority and case law supporting his position, if he is able to. You were encouraged to consult counsel. YAG posted an observation on a now-closed site that I find humorously applicable to this situation. Take GulfBreeze’s assurance but, without statutory or case law authority, take it on faith, if you wish to.

 

[wine4me]

Thank you everyone for helping me out.

My question is simple, does the 5 1/2 years I live in CA count towards the SOL? Since I think SOL in California is only 4 years for open ended accounts. I lived in NY from 2/2001 to 4/2002, so all up it has been more than six years.

I don't have the money to pay and I am really scared that they would sue me for something that is so old and I really have no recollection of owing in the first place. The collection agency mentioned Chemical Bank. I think Chemical Bank is no longer in business.