If you’re like the overwhelming majority of Americans, you likely carry some form of debt. If this reflects your circumstances and you are contacted by a creditor or debt collector in regard to an amount owed, you may not know how to proceed. It’s important to understand your rights in these instances, especially if the debt is past the statute of limitations in California. As such, if you have been contacted about an old debt, you’ll want to keep reading to learn your rights as a consumer and why connecting with a California debt collection defense lawyer is critical to protecting your rights in these matters.
What Is a Statute of Limitations?
When someone is accused of wrongdoing, whether it’s a criminal or civil matter, it’s important to understand that there is only a certain amount of time in place to hold them liable for their actions. This is known as the statute of limitations. Essentially, if someone does not bring a lawsuit against another party for their actions within this time period, they lose the right to file a suit. In California, the statute of limitations for debt collection is four years. That means if a debt collector or creditor wishes to file a lawsuit against you for funds you owe, they must do so before four years pass. If they do not, they no longer have a right to file a lawsuit against you.
It’s important to note that certain actions can cause the statute of limitations to reset, meaning the four-year time period in which you can be sued can restart. As such, you must navigate these matters carefully, especially when dealing with a debt collector looking to pursue an old debt.
What Should I Do if a Collector Contacts Me?
If you are contacted regarding a debt, the most important thing you should know is not to acknowledge that you owe it or agree to pay. Doing so can restate the clock on the statute of limitations for the debt, meaning you can be held liable for the money and potentially sued. Instead, you should tell the collector that you will not discuss the debt until you have received a validation notice. This essentially provides information regarding the debt, such as when it was taken out, who the original creditor is, and the amount owed.
When you receive the debt validation notice, it’s important to look at the dates to determine if it is past the statutes of limitations. If it is, you are no longer legally obligated to pay the debt, and the collector cannot sue you over it.
In the event a collector attempts to file a lawsuit for the debt, it is a violation of the Fair Debt Collection Practices Act (FDCPA), and you can file a claim to recover statutory damages up to $1,000 for the violation.
If a debt collector contacts you over a debt you believe is old, there is a lawsuit against you for an expired debt, or you are facing harassment from a collector over a debt you no longer owe, it’s in your best interest to connect with an experienced attorney from Loker Law, APC. We understand how complicated and overwhelming these matters can be, which is why we are dedicated to helping you through these challenging times. Contact us today if you need assistance.
