My son admitted to a debt collecter to a debt where the statute of limitations had passed. what can he do now

Question

He wanted to improve his credit so he called up the debt collector (for a $4000 debt) and they said he could pay $2100. Now that he's admitted to the debt, does that mean that the SOL term starts all over again? We live in California. Unfortunately, I learned about the SOL too late.

Answer 1

From what I understand if he payed them anything or agreed to pay them anything, then the SOL starts over again and they have the legal right to take him to court if he fails to pay. The info on this website below will tell you more about it. (:Link #1) However, you need to look up the laws for the state of California for the specifics on the SOL. (Link #2)

Don't forget, that he is still protected by the laws set against debt collectors- i.e. they aren't allowed to misrepresent themselves as an attorney's office OR call his house more than once a day. (Link #3)

Answer 2

No, the SOL does not start over again. Do not call or deal with the agency. If he wants to improve his credit, just get a small secured loan for 24 months and pay it back in 12. If he has no funds to put up to secure the loan but you have $2000 in a savings account, you can put it under his name only so he won't need a co-signor for the loan

Answer 3

I believe if the statute of limitations has passed then as long as he doesn't make a payment it's ok...

I've read literature that if a payment isn't made and the statutes of limitations are reached as long as there is no payment then there is nothing they can do...

Now since your son talked to them after the limitations...and hasn't sent them anything, he can just let them know that he was past the statute before their conversations and will not pay them.

Answer 4

Stan is correct, in California once the account has charged off "nothing" can reset the collecting SOL.

No payment, no written acknowledgment, no verbal acknowledgment can reset the SOL.

If your son is past the collecting SOL, your son no longer has a legal responsibility to pay.

The following is case law concerning that issue (Ca. refers to charge offs as the book being closed):

"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."