California Collection Agency Statue of Limitation?

Like some of the others mentioned, if it is past the reporting period it would be illegal for them to reage the account and place it back on your reports.

In California once the account is charged off (book is closed) NO payment can reset the collecting SOL:

"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."

Along with the protection the FTC offers under the FDCPA (and FCRA), California also has it's own version of an FDCPA and the California Penal Code.

An example of what you can find in the CPA:

PENAL CODE SECTION 523.

Every person who, with intent to extort any money or other property from another, sends or delivers to any person any letter or other writing, whether subscribed or not, expressing or implying, or adapted to imply, any threat such as is specified in Section 519, is punishable in the same manner as if such money or property were actually obtained by means of such threat.

An example of the California FDCPA

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.

I would suggest that you read the FTC FDCPA and FCRA and also the California FDCPA and Penal Code.

I have links to the FTC sites listed in my profile, but not the to the California sites.

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In California - once the account is charged off by the original creditor - any payment you make to anyone "cannot" reset the collecting SOL.

You might click on the last link I have listed in my profile to a free credit discussion board. Do some reading in the Newbie Forum and then in the Credit Forum.

It is a totally free site where you can learn more about the laws in your state, use the sample letter templates, post any questions you may have, etc.

Perhaps Annazz could enlighten us with a source to her statement that debts stay on your records for 8 years...when the FCRA clearly states 7.

Anyway, I'm afraid you are screwed. The Statute of Limitations can be reset if you make a payment on the debt.

However, the credit reporting date can NOT be reset. They can not place this debt on your record for more then 7 years from the date of the FIRST delinquency.

You say they sent this to another collection agency? I'm wondering if they even know you made a payment. Send them a letter demanding that they validate this debt and show exactly what you owe and all of the records.

I'm going to bet they can not supply you with this info.

Negatives age off your credit report 7-1/2 years from the date of first deficiency. If this item is beyond that reporting period and has been put back on our credit report, dispute it with the credit bureau. NOTHING can restart the reporting period clock.

However, payment does restart the Statute of Limitations (SOL), the timeframe to bring lawsuit. If the last payment you made is within 4 years, this new collection agency can take you to court.

Even if the debt is beyond the reporting period and the SOL, collection agencies can still try to collect.

An old, unpaid debt not charged off can remain upon your credit report in California for 8 years.

First, whether it is on your credit report has absolutely no bearing on whether they can collect.

Second, the statute of limitations is usually from the last time that you either paid something or agreed to pay something, whichever is later.

Suze Orman often notes that if the end of the statute of limitations is nearing, it is usually better to pay nothing than to pay something.

Four years on a written contract. That four years starts from the date of the last activity which is normally a payment or some type of acknowledgement of debt.