Regarding Tolling in California - Effect On SOL

[Uncle Reggie]

Has the SOL been extended in California on unsecured debts due to COVID?

One of the collection accounts on my credit report shows a 'date of first delinquency' of July 2017. I'm not 100% sure that is accurate - I think it is earlier - but for the purposes of this question, let's assume it is. The SOL should have passed in July 2021 using the 4-Year California law - I wrote elsewhere on the boards about wishing to pay PRA 20% for two 'time-barred' collections and allow them to drop off after 30 days as they promise.

But I would like to make sure there is no hidden extension of the SOL on the debt. I don't want to poke a beehive if the bees are still inside, so to speak. I have looked and cannot find a firm yay or nay on this.

[Bulldoger]

I posted file below  on board but don't remember where

In CA Under Rule 9(a), statutes of limitations that exceed 180 days are tolled from April 6, 2020, until October 1, 2020.   so add how many days from April 6 to October 1.

2020_USLAW_NETWORK_COVID_19_Statute_of_Limitations_Quick_Guide_COMPILATION_version.pdf

[Uncle Reggie]

Thank you for clearing that up - I could not open the attachment, but based on what you say - there are adding 6 months to all SOL for unsecured debts. Since some of my dates of first delinquency may be May 2017 - I may have to lay low until November.

Just to confirm - the SOL starts from the date of first missed payment? Say I paid my April 1st payment - then never made another payment - the first due date missed was May 1st - that is when the clock starts. Not the date of last payment - but date of first delinquency…

I always get them confused.

My plan was to go to PRA - offer them 20% on time-barred debt - that may not be time-barred.

Again, appreciated.

[Bulldoger]

You have to read agreement, some agreement will say contract is in default 30 days after the missed payment. If it says that the it starts June 1st. Basically they give a 30 day grace period allowing you to pay late. I think that's why they don't report late payments until 30 days. You can pay late by 29 days and not hurt your credit rating.  An trolling is closer to 7 months so in all it's 4 years 8 months to be safe. 

[BV80]

10 hours ago, Uncle Reggie said:

Thank you for clearing that up - I could not open the attachment, but based on what you say - there are adding 6 months to all SOL for unsecured debts. Since some of my dates of first delinquency may be May 2017 - I may have to lay low until November.

Just to confirm - the SOL starts from the date of first missed payment? Say I paid my April 1st payment - then never made another payment - the first due date missed was May 1st - that is when the clock starts. Not the date of last payment - but date of first delinquency…

I always get them confused.

My plan was to go to PRA - offer them 20% on time-barred debt - that may not be time-barred.

Again, appreciated.

When an account has been current, then a payment is missed and no other payment is ever made, the SOL for collection will usually begin 30 days after the missed payment.  That is because of the grace period mentioned by @Bulldoger.

The “date of first delinquency” (DOFD) has nothing to do with the SOL for collection.  It is a term used for calculating the 7-year reporting period of negative accounts on a credit report.

In most states, the SOL for collection can be reset by making a payment after an account has gone into default.

However, in regard to the 7-year credit reporting period:

An account goes into default because of a missed payment or a payment that is less than the required minimum payment, depending on a company’s grace period, the DOFD will begin around 30 days later.  If no payment is ever made, the account will be charged off within 180 days of default.

Let’s say you make a few payments after default, but they are lower than the amount required to bring the account back to a current status.  Because they don’t bring the account back to a current status, the DOFD that was established when the account went into default will not change.  Those payments may reset the SOL for collection in one’s state of residence because they constitute an acknowledgment of the debt and an intent to pay.  But, again, they would have no effect on the credit reporting period because they didn’t bring the account back to a current status.

Once an account is charged off, the DOFD can NEVER be changed.  That is because a charged off account can never again be current.  Even paying it in full does not change the fact that it was already charged off.