California State Laws & Statute of Limitations for Credit Card Collections

by Malinda Winkle
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Once a credit card account goes past due, applicable fees mount quickly. By the time the account has been turned over to a collection agency, the late fees and over-limit fees often account for a considerable amount of the debt owed.

In California, under state law, Statute 337 provides a four-year statute of limitations on the collection of credit card accounts that are considered written agreements. Once the statute of limitations is reached, collectors may continue to attempt collections, but they may not bring suit to collect or even threaten to sue the debtor.

In the event your credit card agreement is an oral agreement, the statute of limitations is only two years.

Consider both the state where you lived at the time you took the credit card and the state where the credit card company is located. Depending on the fine print, the statute of limitation laws of either or both states may apply to the rules for collection.

References:
Credit Cards; State Statutes of Limitation for Credit Card Debt; Connie Prater; April 2011