Beyond Statue of Limitations Now What?

by Bob
(Foster City,CA,USA)

I had a debt for 88.99 from a Wells Fargo Checking account while I was in college. The account was charged off and closed in 2006.
I opened a new checking account with Wells Fargo about 3 years ago. I never had any problems or any notifications about that charged off account or the 88.99 balance.

Just YESTERDAY, I was reviewing my accounts and noticed that there is a charge labeled "ROCOVERY SETOFF" for that amount (88.99)

I am well aware that California has a Statue of Limitations for 4 years. It is already 2011, so it has been well over that 4 year period.

Can they legally withdraw money out of my account like that without any notifications and beyond the statue of limitations?

What options do I have to dispute and have these charges reversed out of my current account?

Gerri, I don’t think Wells Fargo can do that if it’s past the statute of limitations, unless your client has somehow revived the debt with some kind of activity within the four-year period. However, given the small amount of money involved, this is probably better treated as a class action than an individual action, unless your client wants to go to small claims court.

Reply from DebtCollectionAnswers.com:

Bob,

We consulted Robert Brennan, a consumer law attorney in California. He agreed that it's unlikely that the bank can do that if it’s past the statute of limitations, unless you somehow revived the debt with some kind of activity within the four-year period.

However, given the small amount of money involved, he also suggested this is probably better treated as a class action rather than an individual action, unless you want to take them to small claims court - which you could try.

You can learn more at his website SoCalCreditDamage.com



www.socalcreditdamage.com