The last date of delinquincy Occurred soon after account was opened. However the company attempted to collect for several years with account status open. I understand it is 4 years. To be clear does this mean the company has up to 4 years to collect and then they have to forward to collections agency to continue attemp to collect? And then it stays in collections for 7 years-10?
They have four years to file a lawsuit. It stays on your credit report for 7-10 years. They can still call you and ask you to pay after the statute has expired.
The statue limitations is four years. However a creditor can report on the credit report for seven years. These are two separate time periods and date.
You would typically not rely on credit reports when trying to determine when the statute of limitations begins to run. You would look at the agreement to determine which statute of limitation applies, and then factor in the date of default. So for example if you obtained a loan in January of 2015, made two payments, and then defaulted in April of 2015, the statute of limitations began to run on some day in April of 2015. If California law applies and the applicable SOL is four years, the creditor has until the same date in April of 2019 to file a lawsuit.
This answer is for general information purposes only and is not legal advice. No attorney-client relationship is intended or formed by the posting of this answer. Law Office of Lisa J. Espada * San Francisco, CA *
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