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  1. #1
    Join Date
    Feb 2013
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    6

    Default When Does the Statute of Limitations Start Running on a Credit Card Default

    My question involves collection proceedings in the State of: California

    337. Within four years: 1. An action upon any contract, obligation
    or liability founded upon an instrument in writing, except as
    provided in Section 336a of this code; provided, that the time within
    which any action for a money judgment for the balance due upon an
    obligation for the payment of which a deed of trust or mortgage with
    power of sale upon real property or any interest therein was given as
    security, following the exercise of the power of sale in such deed
    of trust or mortgage, may be brought shall not extend beyond three
    months after the time of sale under such deed of trust or mortgage.
    2. An action to recover (1) upon a book account whether consisting
    of one or more entries; (2) upon an account stated based upon an
    account in writing, but the acknowledgment of the account stated need
    not be in writing; (3) a balance due upon a mutual, open and current
    account, the items of which are in writing; provided, however, that
    where an account stated is based upon an account of one item, the
    time shall begin to run from the date of said item, and where an
    account stated is based upon an account of more than one item, the
    time shall begin to run from the date of the last item.

    3. An action based upon the rescission of a contract in writing.
    The time begins to run from the date upon which the facts that
    entitle the aggrieved party to rescind occurred. Where the ground for
    rescission is fraud or mistake, the time does not begin to run until
    the discovery by the aggrieved party of the facts constituting the
    fraud or mistake. Where the ground for rescission is
    misrepresentation under Section 359 of the Insurance Code, the time
    does not begin to run until the representation becomes false.
    http://www.leginfo.ca.gov/cgi-bin/di...file=335-349.4

    Does this mean the statute of limitations of 4 years begin from last activity? If last payment is made on 01/10/2010, next payment due is 02/12/2010 which I did not pay (defaulted), and I continued to use the card until the charging privilege was suspended (last purchase being made on 03/05/2010). Does the 4 year SOL begin 03/05/2010 until 03/05/2014? What affect if any would a leap year have on the tolling? What if I take a vacation out of state?

  2. #2
    Join Date
    Sep 2010
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    19,901

    Default Re: When Does the Statute of Limitations Start Running on a Credit Card Default

    The operative time is the last time you charged something (or perhaps the first bill you didn't pay after that charge).
    Leap years are disregarded. If 3/1/2010 was the date of the causative action, then 3/1/2014 is the limitation period.
    Generally, temporary absences from the state don't count as the "not present" for tolling.

  3. #3
    Join Date
    Feb 2013
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    6

    Default Re: When Does the Statute of Limitations Start Running on a Credit Card Default

    Under a breach of contract cause of action, according to the credit card agreement, default occurs if I fail to make a required payment, so 02/12/2010 would be when the breach occurred which begins the SOL for a breach of contract claim?

    Under an account stated cause of action, the time begins to run from the date of the last item, which in this case would be the last purchase made on 03/05/2010, so the SOL begins 03/05/2010 for an account stated claim?

    I've seen credit card debt lawsuits with breach of contract, account stated, and open ended account for causes of action.
    Is open ended account same as account stated?

  4. #4
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    Default Re: When Does the Statute of Limitations Start Running on a Credit Card Default

    As far as California is concerned, it is.

  5. #5
    Join Date
    Feb 2013
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    6

    Default Re: When Does the Statute of Limitations Start Running on a Credit Card Default

    Quote Quoting flyingron
    View Post
    As far as California is concerned, it is.
    Sorry, was that towards this question?
    "Is open ended account same as account stated?"

  6. #6
    Join Date
    Feb 2010
    Location
    CT & IL
    Posts
    5,273

    Default Re: When Does the Statute of Limitations Start Running on a Credit Card Default

    The date starting the SOL could also be the date of a last payment, even if only one penny...

  7. #7
    Join Date
    Sep 2010
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    Default Re: When Does the Statute of Limitations Start Running on a Credit Card Default

    Yes. California doesn't much differentiate between agreement to pay on an open ended account versus on a written contract. The statute of limitations applies both in duration and on the date the action commences.

  8. #8
    Join Date
    Feb 2013
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    6

    Default Re: When Does the Statute of Limitations Start Running on a Credit Card Default

    Thank you for your help.

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