Q: I previously worked in California, and currently live in Ohio. I was notified 1 year after leaving my position that
I had been overpaid. It has now been 8 years. I had initially set up a payment plan and made some payments however was unable to continue to do so due to unforeseen circumstances. The company recently reached out about continuing to make payments. Is there a statute of limitation on this? Can they report this to the credit bureau?
A:
I think that you blew the statute of limitations defense by making recent payments.
Your question is a beautiful illustration of why it's important to get legal advice BEFORE you act, not AFTER.
Scott Richard Kaufman agrees with this answer
A: Depending on multiple factors, multiple things can happen. It is unclear from the jump that you owe them anything, but, since you agreed and you made payments, that's a tough one to defend. WHEN your last payment was can matter re: SOL. Unless you purchased something from them on credit it would be tough for them to 'legally' report you to a credit reporting agency, as it is not a consumer debt owed to a typical bill collector. IF they sue you and win, then they may be able to report that court victory to a credit reporting agency? Good luck with it.
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A:
In California, the statute of limitations for debts related to an employment overpayment is generally four years under the California Code of Civil Procedure Section 337, if the agreement to repay was in writing. However, if there was no written agreement, the statute of limitations may be two years. Since it has been eight years since you were notified of the overpayment, it's possible that the statute of limitations has expired.
However, the fact that you set up a payment plan and made some payments could potentially impact the statute of limitations. Making a payment can sometimes reset the clock on the statute of limitations, depending on the specific circumstances.
Regarding reporting to a credit bureau, yes, they can report debts to credit bureaus. If they choose to report the debt, it must be done accurately and in compliance with the Fair Credit Reporting Act.
Given the complexity of your situation, including factors like the initial agreement, any payments made, and the time elapsed, it's wise to seek legal advice. A lawyer can provide specific guidance based on the full details of your case, including the potential impact of state laws where you currently reside.
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