Receiving a notice in the mail about a debt you forgot about can be anxiety-inducing. However, this stress can elevate if you are served papers over this debt. When you are the defendant in a lawsuit surrounding money owed, understanding the most common defenses is critical. One thing you may be able to rely on is the statute of limitations for debt collection in California. If you’ve been served over an old debt, you’ll want to keep reading to learn more about your rights and discover how a San Diego County debt collection harassment lawyer can help you protect yourself.
What Is the Statute of Limitations for Debt in California?
It’s important to understand that, if you owe a debt in San Diego, a debt collector will only have a limited amount of time to pursue you for the debt. This is to prevent debt collectors from taking legal action against old or outdated debts.
California’s Four-Year Deadline
In California, the statute of limitations for a debt is four years. It’s important to understand that the clock will start on the date of your first missed payment.
Why This Matters
Once a debt has passed the four-year statute of limitations, it becomes time-barred. This means that, while a collector can attempt to collect the debt, they are prohibited from filing a lawsuit against you, though many will attempt to pursue an unlawful lawsuit. Doing so often constitutes a violation of the Fair Debt Collection Practices Act (FDCPA).
How the Statute of Limitations Can Restart
It’s critical to understand that there are a number of actions that you may take that can actually reset the clock on an owed debt.
Actions that Restart the Clock
- Making a payment of any amount
- Agreeing to a repayment plan
- Confirming the debt in writing
- Making a promise to pay
Why This is Dangerous
It’s important to understand that taking any of the aforementioned actions can reset the clock on the statute of limitations. As such, this would give the collector four new years to file a lawsuit. In some instances, this can actually revive a debt that was uncollectible because of the expired statute of limitations.
What Debt Collectors Can and Cannot Do After the Statute Expires
If a debt in your name has expired in California, it’s critical to understand what a debt collector can and cannot do. This helps ensure that you understand your rights and can take legal action if a collector violates the law.
What They Can Do
- Contact you in regards to the debt
- Request voluntary payment
- Report the debt (so long as it’s within the credit reporting time limit)
What They Cannot Do
- They cannot sue you
- They cannot threaten to file a lawsuit if they have no legal grounds to do so
- They cannot misrepresent the status of the debt
- They cannot harass you for payment
What To Do if You’re Contacted About a Time-Barred Debt
If a debt collector contacts you or files a lawsuit against you over a debt that has passed the statute of limitations in California, understanding what steps you should take is critical. As noted, certain actions can restart the clock on the statute of limitations, meaning you could end up legally responsible for a debt that had no legal standing.
Step 1: Request a Debt Validation Letter
The first thing you should do is ask for a debt validation letter. This will inform you when the original debt was taken out, the original creditor, and what is owed. You can then respond to the lawsuit by filing within 30 days. This allows you to assert your defense.
A debt validation letter must show:
- The name of the original creditor
- The amount owed
- The date of the last payment
- Verification that they have the right to collect
Step 2: Check Dates Carefully
You should carefully review the information to determine whether or not the debt is outside of the statute of limitations. You should compare this with the last payment date and any actions that could have restarted the clock.
Step 3: Respond to Lawsuits Within 30 Days
If a lawsuit is filed against you, it is imperative that you file a response within 30 days. Failure to do so can result in a default judgment issued against you. This essentially means that, because you failed to respond, the court can proceed with the case and enter a default judgment against you. This means you could potentially have your wages garnished to repay a debt that you no longer legally owe because of the expired statute of limitations.
Step 4: Consider FDCPA Violations
In many instances, a debt collector can still try to collect on an expired debt, so long as they don’t violate the Fair Debt Collection Practices Act (FDCPA) in the process. This act dictates acceptable behaviors and methods for third-party collectors. Trying to sue a debtor for an expired debt can help you defend yourself and may lead you to recover damages under the FDCPA, as collectors are prohibited from taking legal action against debts passed the statute of limitations. Other common violations include misrepresentation of your legal rights, harassment, and threatening to sue when there is no legal ground to do so.
Contact Our San Diego Debt Collection Defense Team Today
If you are contacted in regards to a debt that you believe is expired, Barthel Legal can help. We understand how overwhelming these matters can be, which is why we are dedicated to fighting for you. Before making any payments or agreeing to a new payment plan, contact our team to discuss your circumstances with a member of our firm.
