A debt buyer shall not bring suit or initiate an arbitration or other legal proceeding to collect a consumer debt if the applicable statute of limitations on the debt buyer’s claim has expired.

(Added by Stats. 2013, Ch. 64, Sec. 2. (SB 233) Effective January 1, 2014.)

Terms Used In California Civil Code 1788.56

  • Debt buyer: means a person or entity that is regularly engaged in the business of purchasing charged-off consumer debt for collection purposes, whether it collects the debt itself, hires a third party for collection, or hires an attorney-at-law for collection litigation. See California Civil Code 1788.50
  • Statute of limitations: A law that sets the time within which parties must take action to enforce their rights.
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