I had an old loan 8+ yrs in CA. SOL in CA is 4yrs for written contract. Now I live in a state whose SOL is 10 yrs for written contract. The loan is not even on my credit report any more. My question is 1) Which state SOL applies in this case ? 2) Can they sue me in CA even though the SOL is expired in that state. 3) The Collection agency is also from California. 4) Can they sue me in my current state? thanks,
If the contract formation took place in CA, it does not matter where you live now. The SOL has expired. They have no claim. cariba
They may have no claim as you stated, but the SOL does not stop them from going to court and seeking judgment. They can do that even tho the SOL is expired on the debt and if the debtor does not go to court and dispute the judgment using the SOL as a defense, the judgment can be renedered and then the SOL has no bearing on the situation. If SOL is not raised as an issue in court, it does not apply.
Hold on, here. you need legal advice on this. Ask a lawyer. There is a whole other set of laws which can come into play when it comes to this, unless your original contract specifically states that they limit "remedies" to the state where the contract was exectued.
The contract was signed in CA but dont have it with me any more to see what exactly it says. Are they not supposed to send me more in writing that they really going to sue me like a letter from an attorney. I have already send them a letter to prove that this debt belongs to me and i am not even sure if this debt is really mine because the amount they are asking is outrageous and in the very first call they were trying to settle for less then half the original they requested which is still a big amount for me to pay and knowing that it may be not even mine debt. thanks,
Chances are CA laws apply, but there is a chance it could be otherwise. Like I said, there is a whole set of laws governing what they do when there are conflicting laws and jurisdictions. Original contract may state where they can sue you. Yes. You have to appear in court (or have a representative appear) and defend yourself by showing that the SOL has run. If you did not show up they could get a judgment by default, even though the SOL has run. Doesn't matter, except, if your state requires a license, they must have one in order to try to collect from you now. - I think, hehe. See answers above.
Are they not suppose to tell you that they are really going to sue you like letter from their attorney. And if they do sue me in CA and get a judgment against me how they can collect it if i live in another state. Can they garnish my wages, put a lien on my house or car.?
In most states you have to be served a warrant. Even if the SOL is up you have to go to court and defend yourself. Yes, they can sue you in one state and serve you in another. Collection agencies are famous for serving you at an old address, so you don't know about it, and therefore don't show up - voila! they get a judgment. Whether they can garnish your pay or not depends on state laws, but in most states they can. I would send the good old "cease communications" letter, certified, return receipt, and get the little ticket that's proof you mailed it, just to prove they did have your correct address so they know they can't have you served at another address and ge away with it. Chances are, when you send that letter they will either sue you or go away and leave you alone. Most likely they'll decide it's too much trouble and go away. You can check your state laws at http://www.lawdog.com
