Can a original creditor threaten to sue on time barred debt?

[Mondavi]

I live in California. My DoFD on this debt was June of 2008. This was for a boat loan. The bank is located in OH. This whole thing has become a mess. I was involved in a fraud case. The bank does not care since in the fine print it stated I could not sell the boat without contacting the bank first.

They sent the debt to many different CA's it was always sent back. Since the case was so complex. I finally called the bank. Have not spoken to them in over four years. I was able to get them to recall the debt. Well after reaching out to them. Their internal recovery department treated me like garbage. Demanding that I make a settlement offer that very minute. If I did not they would send it over to legal and my wages would be garnished. On top of that they told me an attorney could not represent me and that only I could deal with them. So after getting to the point were I was going to explode in anger, I hung up and called a manager who then assigned me to another agent. Who once again talked about legal crap. She also said since interest and penalties are still occurring that a settlement will only go up and that is how it works. Two years ago they sent me an offer to settle and now she said I would have to pay $3,000 more now.

Since the DoFD was June 2008 and I live and signed the contract in California I would hope the SOL has passed since a written contract in CA is 4 years. I know debt collectors are not supposed to threaten to sue on time barred debt. Does this also apply to creditors and their own debt? Also can they threaten to garnish my wages without any legal notice. On top of that tell me that I can not be represented by my attorney when dealing with this??

I do have an attorney but trying to save myself some money before he gets invloved more than I need.

[DaBears]

 Breach of a written contract:  Four years from the date the contract was broken. Thats SOL in California. I would get a attorney on this.

[guiness56]

They can use either SOL.  OH is 15 years.

They cannot tell you you cannot have legal represenation, that is your right.  Did you read the original contract?  Did it say anything about an attorney or mediation?

If someone sued me you bet I would have an attorney.

They cannot garnish wages without first getting a judgment.

[Mondavi]

My attorney was not to concerned about them trying to use the OH SOL. Since the contract was signed and I lived in California he said they would also have a really hard time getting a judge to accept the SOL of OH and if they did they would have to sue me in Caliornia. He also said that if this did go to court that by the time it was done he would make them spend at least 6 times of what the debt was originally. With all the processes he would make them go through.

I just was not sure if they could threaten to garnish wages over the phone without proper notification first. There has to be a violation somewhere with them telling me I can not have an attorney represent me if they do sue. I wish I could deal with these people face to face. Actually I may be behind bars if I did so maybe that would be a bad idea.

Also OH is now 8 years on a written contract. I think it was revised last year.

[guiness56]

I've never seen the OH revised SOL.  But your attorney is correct.  That is why it is normally the SOL of your current state.

Actual creditors can get by with a lot more than a CA can.  They don't seem to fall under any laws as far as contacting you and/or making threats.  Not to say that they coudn't be sued for it.

They can say what they want but bottom line is there has to be a judgment to get a writ of garnishment.  If they sue you, you would need to be served.  They can't just start taking money from you.

[Mondavi]

Thanks for the help. Here is the code for OH if you are bored and want to look it up. rev. Code 2305 03. Unless I just misread it.

[guiness56]

I just read it.  There is a stipulation that if it happened before Sept 2012 the 15 years remains the SOL.  After Sept 2012 it is 8 years.

I was also reading somewhere where it was said Ohio had the most consumer friendly SOLs and I had to laugh.  15 years is not very consumer friendly in my eyes!

[Shogun]

It gets kind of sticky sometimes like guiness said, when it comes to the OC.  They do have some different guidlines than CAs do.  The part about not being able to have legal representation is laughable.  That's a constitutional right so unless they can bypass that, then they are feeding you a bunch of crap.

As far as the SOL rule goes, it will fall before a judge, if they were to try to enforce Ohio SOL, your attorney should be able to file against that since the transaction took place in Cali.  

You have a unique situation, that will require legal help.  Wishing the best to you.

[DaBears]

Agreed with Guiness and Shogun on this. Best of luck and keep us posted. Would like to see you when this one so we all can have a good laugh when you prevail!!!!

DaBears