COLLECTION LAWS – CALIFORNIA (CA)
(1) Pre-Judgment Interest Rate: In California, the pre-judgment interest rate is governed by California Civil Code Section 3289. It states that the legal rate of interest for the recovery of damages is 10% per annum. However, in cases where there is a written agreement between the parties specifying a different rate of interest, the contractual rate will apply.
(2) Post-Judgment Interest Rate: The post-judgment interest rate in California is determined by California Code of Civil Procedure Section 685.010. It states that the post-judgment interest rate is based on the weekly average yield on United States Treasury securities, adjusted to a constant maturity of one year, plus 2%. The rate is set by the California State Controller and is updated on a quarterly basis.
(3) Statute of Limitations for Written Contract: The statute of limitations for bringing a lawsuit based on a written contract in California is four years. According to California Code of Civil Procedure Section 337, an action to enforce the terms of a written contract must be commenced within four years from the date the cause of action accrued.
(4) Statute of Limitations for Oral Contract: For oral contracts, the statute of limitations in California is two years. California Code of Civil Procedure Section 339 provides that an action based on an oral contract must be initiated within two years from the date the cause of action arose.
(5) Statute of Limitations for Open Account: The statute of limitations for actions related to open accounts, which includes debts arising from credit card purchases or other ongoing credit arrangements, is four years in California. This is outlined in California Code of Civil Procedure Section 337.
(6) Statute of Limitations for Contract for Sale of Goods: For contracts for the sale of goods under the Uniform Commercial Code (UCC), the statute of limitations in California is four years. Pursuant to California Commercial Code Section 2725, any action for breach of a contract for the sale of goods must be initiated within four years after the cause of action accrued.
(7) Statute of Limitations for Promissory Note: The statute of limitations for actions related to a promissory note in California is four years. As per California Code of Civil Procedure Section 337, any action to enforce a promissory note or other written instrument for the payment of money must be commenced within four years from the date the cause of action arose.
(8) Statute of Limitations for Enforcement of Domestic Judgment: In California, the statute of limitations for the enforcement of a domestic judgment is ten years. California Code of Civil Procedure Section 683.020 establishes that a judgment may generally be enforced within ten years from the date it was entered, unless otherwise specified.
(9) Statute of Limitations for Enforcement of Foreign Judgment: When it comes to the enforcement of a foreign judgment in California, the statute of limitations is typically recognized as the shorter of two periods: the expiration of the statute of limitations in the jurisdiction where the judgment was originally granted or the expiration of the California statute of limitations. It is recommended to consult the California Code of Civil Procedure Section 1710.40-1710.65 for specific details regarding the enforcement of foreign judgments.
(10) Garnishment Exemptions: Under California law, certain assets are exempt from garnishment, meaning they are protected from collection efforts. Exemptions include, but are not limited to, a portion of wages, public benefits such as Social Security and disability payments, retirement benefits, and tools of trade. The specific exemptions can be found in California Code of Civil Procedure Section 704.010-704.210.
Disclaimer: Please note that the presented content is an outline of legal regulations, serving as a general overview rather than an exhaustive representation of comprehensive statutes. It is crucial to recognize that this outline does not constitute “legal advice.” Moreover, it is important to acknowledge that subsequent changes to the listed statutes may occur subsequent to this publication. It is recommended to consult an attorney in the jurisdiction to confirm the information is up-to-date and accurate.