Statue of Limitations??

[DurangoDAWG]

What is the name of your state?What is the name of your state? CA
I am trying to help my friend who recently was served papers from Asset Acceptance on a debt collection from Citibank. From all his records, the last activity (payment) to Citibank was 6/2000, I assume it was written off Cititbank's records and sent to collection around 12/2000. Asset Acceptance(AA) was the CA that took over his debt. Around 6/2002 he had some money and was going to try to start paying it off to AA, I believe he made 1 or 2 payments, but was soon unable to make more payments. After multiple attempts for AA to try to get more money, we sent off a Cease and Desist letter around 7/2004. We then received a letter from AA attorneys requesting the money, we sent them a Cease and Desist letter in 10/2004. Well, just last Sunday, my friend was served papers. We have sent an answer (lack of proof) and also requested all information they have concerning the debt, but the question is this: It is passed the statue of limitations from last activity to the Original Creditor (more than 4 years) but does him making a payment to the CA in 6/2002 reset the SOL? Thanks for your help in this matter.

 

[Ladynred]

It is possible he reset the SOL and you can be damn sure that ASSet is going to claim exactly that.

I haven't found anything that's an exact fit in the CA statutes on this, but there is this:

"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."

I'd have to look up the definition of an 'open book account' and whether or not it applies to a credit card, which is an open-ended agreement.

** I did find a definition of an open-book account:
Open Book Account
Definition: Method of debiting the customer's account and billing at a later date.

That's pretty much what happens with a credit card !!

 

[DurangoDAWG]

I did find these 2 codes under CA Code of Civil Procedure:

360. No acknowledgment or promise is sufficient evidence of a new
or continuing contract, by which to take the case out of the
operation of this title, unless the same is contained in some
writing, signed by the party to be charged thereby, provided that any
payment on account of principal or interest due on a promissory note
made by the party to be charged shall be deemed a sufficient
acknowledgment or promise of a continuing contract to stop, from time
to time as any such payment is made, the running of the time within
which an action may be commenced upon the principal sum or upon any
installment of principal or interest due on such note, and to start
the running of a new period of time, but no such payment of itself
shall revive a cause of action once barred.

360.5. No waiver shall bar a defense to any action that the action
was not commenced within the time limited by this title unless the
waiver is in writing and signed by the person obligated. No waiver
executed prior to the expiration of the time limited for the
commencement of the action by this title shall be effective for a
period exceeding four years from the date of expiration of the time
limited for commencement of the action by this title and no waiver
executed after the expiration of such time shall be effective for a
period exceeding four years from the date thereof, but any such
waiver may be renewed for a further period of not exceeding four
years from the expiration of the immediately preceding waiver. Such
waivers may be made successively. The provisions of this section
shall not be applicable to any acknowledgment, promise or any form of
waiver which is in writing and signed by the person obligated and
given to any county to secure repayment of indigent aid or the
repayment of moneys fraudulently or illegally obtained from the
county.

http://www.leginfo.ca.gov/cgi-bin/displaycode?section=ccp&group=00001-01000&file=350-363

I did a search and saw that one poster stated that using 360.5 as long as he didn't sign anything to the CA (just a check according to my friend) would not reset the SOL and would mean that he is passed the SOL with the OC. But reading code 360 makes me confused - or does that only apply to a promissory note?

Any help would be appreciated. Thanks

 

[DurangoDAWG]

Any help out there understanding these 2 civil codes?? Thanks

 

[possumfat]

Oklahoma SOL......3 Years of 5 Years ?

State: Oklahoma

The SOL for debts in Oklahoma are 3 years for "open accounts" and 5 years for "written contracts".

Does anyone know what category "credit card debt" falls into ? Listed below is the SOL information for Oklahoma:

OKLAHOMA

INTEREST RATE

Legal: 6%

Judgment: 4% over U.S. Treasury Bill Rate of previous year. (1996 = 9.55% 1997 = 9.15%)

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 3

Written Contract: 5

Domestic Judgment: 5 renewable

Foreign Judgment: 3

BAD CHECK LAWS (CIVIL PENALTY) N/A

GENERAL GARNISHMENT EXEMPTIONS

State law: 75% of earnings exempted, more if hardship established. All federal exemptions apply.

COLLECTION AGENCY BOND & LICENSE

Bond: No License: No Fee: No

 

[absconder]

Do a forum search on this company.

 

[Ladynred]

Dawg - post the statutes over on www.creditinfocenter.com in the "Lawyer in the House" forum. Address your query to "CALAWYER", he can tell you what that code means for certain.