SOL question; pertains to California

[formercreditidiot]

Can anyone be so kind and tell me if a payment to a revolving account restarts SOL in california?

Also, any links to California specific statues, etc would be great. I appreciate any help I can get!

[CarolinaBlueEyes]

Yep I believe it does.. I can't give you a state statute but IF you pay a bill, or send an agreement in writing, it shows that you are admitting to oweing said creditor.. therefore a payment on the account can restart your SOL

This is also is an issue with your cause of action or deliquincy date because it now extends this on your credit report and can be reported even longer.

[formercreditidiot]

thank you so much for the reply!

[CarolinaBlueEyes]

I thought I would check this further since one size does not fit all and what I told you prior is the case in most states, I know Texas is an exception so I thought I would dig a little further

However you don't say if you made the payment within the SOL or after the SOL has passed , which is four years in your state.. that is also a factor.

Here is what I found.. hope it helps

Resetting the collecting SOL is NOT a one size fits all .

It depends on the state laws. Some states allow it and others don't.

Your state is one that does not allow the collecting SOL to be reset.

CA. state SOL statute

§337.

Within four years:

1. An action upon any contract, obligation or liability founded upon an instrument in writing, except as provided in Section 336a of this code;

2. An action to recover

(1) upon a book account whether consisting of one or more entries;

(2) upon an account stated based upon an account in writing, but the acknowledgment of the account stated need not be in writing;

(3) a balance due upon a mutual, open and current account, the items of which are in writing; provided, however, that where an account stated is based upon an account of one item, the time shall begin to run from the date of said item, and where an account stated is based upon an account of more than one item, the time shall begin to run from the date of the last item.

(It means once the account has been charged off by the original creditor, and no further charges can be made on the account by you, NO payments can reset the collecting SOL)

Case law:

"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."

Your state has it's own version of the FDCPA that mrrors the FTC FDCPA and in some cases is much stronger. (You might look it up and do some reading)

A couple of examples of the CA. FDCPA:

3; The California statute applies to the debt collection activity of both original creditors and debt collection agencies that regularly collect debts.

81. In Kimber v.Federal Financial Corp.(M.D.Ala.1987)668 F.Supp.1480, the court held that it is "unfair " within the meaning of the federal statute to file a time-barred collection suit against a consumer,and that it is a deceptive act to even threaten to file such a suit.

Edited October 28, 2009 by CarolinaBlueEyes