California SB706 restricts the sale and assignment of charged-off consumer debts and limits the time for legal action on such debts.

California SB706 adds Section 1788.57 to the Civil Code, prohibiting the sale or assignment of charged-off consumer debts more than one year after the debt was charged off. It also mandates that charge-off creditors notify consumers when they sell or assign such debts to a debt buyer. The bill amends Section 337 of the Code of Civil Procedure to limit the time for legal action on charged-off consumer debts to the earlier of two years from the date of the creditor's notice of default or ninety days after the debt was charged off.

California SB706 restricts the sale and assignment of charged-off consumer debts and limits the time for legal action on such debts.

California SB706 adds Section 1788.57 to the Civil Code, prohibiting the sale or assignment of charged-off consumer debts more than one year after the debt was charged off. It also mandates that charge-off creditors notify consumers when they sell or assign such debts to a debt buyer. The bill amends Section 337 of the Code of Civil Procedure to limit the time for legal action on charged-off consumer debts to the earlier of two years from the date of the creditor's notice of default or ninety days after the debt was charged off.