When you are contacted by a debt collector over a debt taken out years ago, you may be nervous, as you may have forgotten about it. Whether you are harassed or sued, you have rights as a consumer. If you are contacted by a collector, understanding the statute of limitations for debt collection is critical. The following blog explores what you should know about these matters and why you may have to connect with a California fraud debt collection defense lawyer to help protect your rights during these times.
What Is the Statute of Limitations for Debt Collection?
In California, the statute of limitations that a collector has to pursue a debt is four years. This period starts from the date of the first missed payment. Once the statute of limitation passes, a collector is no longer able to take legal action against someone who owes a debt.
It’s important to understand that the collector can still pursue an expired debt, so long as they do not violate the Fair Debt Collection Practices Act (FDCPA). If they violate this act, they can be held responsible for these breaches. Common violations of this act include, but are not limited to:
- Lying about the debt you owe
- Threatening to have you arrested
- Threatening to take legal action
- Contacting anyone other than you or your attorney about the debt
You should also note that if you make a payment toward the debt or sign a written agreement to begin a repayment plan, it can restart the clock on the statute of limitations, even if it has expired. This means if you make a single payment, you can open yourself up to the potential for a lawsuit over the debt.
What Should I Do if a Collector Tries to Sue Me for an Old Debt?
If you are sued over a debt older than four years old in California, understanding what you should do in these matters is critical. Generally, the most important step you should take is to connect with an experienced debt collection defense attorney.
Your attorney can examine the details of your case to help craft a defense and determine if the collector violated the FDCPA. Not only can they help fight to have this unfair and illegal lawsuit dismissed, but you may be able to fight for damages. If you are caused stress or anxiety because of the lawsuit, you may be able to hold them liable for these matters.
If this reflects your circumstances, the team at Loker Law is ready to assist you. We understand these matters which is why we will do everything possible to assist you. Connect with us today to learn how we can help guide you through these challenging times to protect your rights.
