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		<ns0:Id>20250SB__070698AMD</ns0:Id>
		<ns0:VersionNum>98</ns0:VersionNum>
		<ns0:History>
			<ns0:Action>
				<ns0:ActionText>INTRODUCED</ns0:ActionText>
				<ns0:ActionDate>2025-02-21</ns0:ActionDate>
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			<ns0:Action>
				<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
				<ns0:ActionDate>2025-03-24</ns0:ActionDate>
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		<ns0:LegislativeInfo>
			<ns0:SessionYear>2025</ns0:SessionYear>
			<ns0:SessionNum>0</ns0:SessionNum>
			<ns0:MeasureType>SB</ns0:MeasureType>
			<ns0:MeasureNum>706</ns0:MeasureNum>
			<ns0:MeasureState>AMD</ns0:MeasureState>
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		<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Hurtado</ns0:AuthorText>
		<ns0:Authors>
			<ns0:Legislator>
				<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
				<ns0:House>SENATE</ns0:House>
				<ns0:Name>Hurtado</ns0:Name>
			</ns0:Legislator>
		</ns0:Authors>
		<ns0:Title> An act to add Section 1788.57 to the Civil Code, and to amend Section 337 of, and to add Section 337.3 to, the Code of Civil Procedure, relating to consumer debt.</ns0:Title>
		<ns0:RelatingClause>consumer debt</ns0:RelatingClause>
		<ns0:GeneralSubject>
			<ns0:Subject>Consumer debt: charged-off debts.</ns0:Subject>
		</ns0:GeneralSubject>
		<ns0:DigestText>
			<html:p>Existing law places various requirements on, and prohibits certain actions by, debt buyers with respect to charged-off consumer debts.</html:p>
			<html:p>This bill would prohibit a charged-off consumer debt from being sold or assigned more than one year after the debt was charged off. The bill would require a charge-off creditor to notify the consumer when the creditor sells or assigned a charged-off consumer debt to a debt buyer.</html:p>
			<html:p>Existing law prescribes various time periods for the commencement of actions other than for the recovery of real property, including within 4 years for an action upon any contract, obligation, or liability founded upon an instrument in writing, as specified.</html:p>
			<html:p>This bill
			 would prohibit an action from being brought to recover a charged-off consumer debt on or after the date that is the earliest of specified dates. The bill would prohibit a debt buyer from bringing an action to recover a charged-off consumer debt after one year from the date the debt was charged off.</html:p>
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			<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
			<ns0:Appropriation>NO</ns0:Appropriation>
			<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
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	<ns0:Bill id="bill">
		<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
		<ns0:BillSection id="id_1395EC07-0957-46DA-9AE0-98FEEECB13A0">
			<ns0:Num>SECTION 1.</ns0:Num>
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				Section 1788.57 is added to the 
				<ns0:DocName>Civil Code</ns0:DocName>
				, to read:
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			<ns0:Fragment>
				<ns0:LawSection id="id_24112268-BD24-4B1F-B550-74E5EE0D6ADA">
					<ns0:Num>1788.57.</ns0:Num>
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								(a)
								<html:span class="EnSpace"/>
								A charged-off consumer debt shall not be sold or assigned more than one year after the debt was charged off.
							</html:p>
							<html:p>
								(b)
								<html:span class="EnSpace"/>
								A charge-off creditor shall notify the consumer when the creditor sells or assigns a charged-off consumer debt to a debt buyer.
							</html:p>
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				</ns0:LawSection>
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			<ns0:Num>SEC. 2.</ns0:Num>
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				Section 337 of the 
				<ns0:DocName>Code of Civil Procedure</ns0:DocName>
				 is amended to read:
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			<ns0:Fragment>
				<ns0:LawSection id="id_988E8D02-530D-41F2-9260-AE19AB141EE6">
					<ns0:Num>337.</ns0:Num>
					<ns0:LawSectionVersion id="id_AD95EA9D-BDBF-4790-B2A9-7868D542DE4D">
						<ns0:Content>
							<html:p>Except as provided in Section 337.3, within four years:</html:p>
							<html:p>
								(a)
								<html:span class="EnSpace"/>
								An action upon any contract, obligation or liability founded upon an instrument in writing, except as provided in Section 336a; 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.
							</html:p>
							<html:p>
								(b)
								<html:span class="EnSpace"/>
								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 if an account stated is based upon an account of one item, the time shall begin to run from the date of the item, and if 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.
							</html:p>
							<html:p>
								(c)
								<html:span class="EnSpace"/>
								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 shall 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 shall not begin to run until the representation becomes false.
							</html:p>
							<html:p>
								(d)
								<html:span class="EnSpace"/>
								When the period in which an action must be commenced under this section has run, a person shall not bring suit or initiate an arbitration or other legal proceeding to collect the debt. The period in which an action may be commenced under this section shall only be extended pursuant to Section 360.
							</html:p>
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					</ns0:LawSectionVersion>
				</ns0:LawSection>
			</ns0:Fragment>
		</ns0:BillSection>
		<ns0:BillSection id="id_85AB32E6-28FD-4687-9E90-63BC8677A997">
			<ns0:Num>SEC. 3.</ns0:Num>
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				Section 337.3 is added to the 
				<ns0:DocName>Code of Civil Procedure</ns0:DocName>
				, to read:
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			<ns0:Fragment>
				<ns0:LawSection id="id_A220C245-CDA7-4C34-926B-11E5CF7C2D27">
					<ns0:Num>337.3.</ns0:Num>
					<ns0:LawSectionVersion id="id_F26BB6B4-C0CA-4BCA-955E-8904FD00842C">
						<ns0:Content>
							<html:p>
								(a)
								<html:span class="EnSpace"/>
								For purposes of this section:
							</html:p>
							<html:p>
								(1)
								<html:span class="EnSpace"/>
								“Charged-off consumer debt” has the same meaning as defined in Section 1788.50 of the Civil Code.
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								“Debt buyer” has the same meaning as defined in Section 1788.50 of the Civil Code.
							</html:p>
							<html:p>
								(b)
								<html:span class="EnSpace"/>
								Notwithstanding Section 337, and except as provided in subdivision (c), an action shall not be brought to recover a charged-off consumer debt on or after the date that is the earliest of the following:
							</html:p>
							<html:p>
								(1)
								<html:span class="EnSpace"/>
								Two years after the date the creditor provided a notice of default or delinquency to the consumer.
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								Ninety days after the debt was charged off.
							</html:p>
							<html:p>
								(c)
								<html:span class="EnSpace"/>
								Notwithstanding subdivision (b), a debt buyer shall not bring an action to recover a charged-off consumer debt after one year from the date the debt was charged off.
							</html:p>
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