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California Debt Collection Laws

How long a creditor can sue you in California, how much of your paycheck is protected, and what debt collectors and debt buyers are not allowed to do.

Last updated September 24, 2026 · Every rule linked to the California or federal law it comes from
What's new: First published: statute limits, wage garnishment rules and collector protections, each checked against the linked law.
Quick factsTime limitsWage garnishmentWhat collectors can't doWhat to doFree helpSources

California debt rules at a glance

The key numbers. Details and the exact law are below.

Credit card / written debt
4 years
Written contracts and book or open accounts. CCP § 337
Oral agreements
2 years
CCP § 339
After the time limit
No lawsuit or arbitration
CCP § 337(d)
Wage garnishment
20% max, often less
Lesser of 20% of disposable earnings or 40% of the amount above 48x the minimum wage. CCP § 706.050
Reviewer credit coming soon. This page was researched and checked against the linked primary sources by the Financialist editorial team.

How long can a creditor sue you in California?

4 years for credit cards and other written debts

California gives creditors four years to sue on a written contract, a book account, an account stated, or an open account whose items are in writing. Most credit card and personal loan debts fall here.

Cal. Code Civ. Proc. § 337(a)-(b) · read the law

2 years for oral agreements

A debt based on an agreement that was not in writing must be sued on within two years.

Cal. Code Civ. Proc. § 339 · read the law

Once time runs out, no lawsuit or arbitration

When the four-year period has run, no one may bring suit or start arbitration to collect the debt. The statute says the period can only be extended under Code of Civil Procedure section 360.

Cal. Code Civ. Proc. § 337(d) · read the law

Debt buyers are barred too

A debt buyer may not sue or start arbitration to collect a consumer debt once the statute of limitations on its claim has expired.

Cal. Civ. Code § 1788.56 · read the law

How much of your paycheck can be garnished?

California protects more than federal law

A wage garnishment (earnings withholding order) can take no more than the lesser of 20% of your disposable earnings for the week, or 40% of the amount by which your weekly disposable earnings exceed 48 times the state minimum hourly wage. If your local minimum wage is higher, the local rate is used.

Cal. Code Civ. Proc. § 706.050(a) · read the law

Other pay periods

For biweekly pay the minimum wage is multiplied by 96 hours, semimonthly by 104 hours, and monthly by 208 hours.

Cal. Code Civ. Proc. § 706.050(b) · read the law

What debt collectors can't do in California

California's own debt collection law

California's Rosenthal Fair Debt Collection Practices Act (Civil Code section 1788 and following) applies to collectors and to original creditors collecting their own debts. Debt collectors must also be licensed by the Department of Financial Protection and Innovation (DFPI).

Complaints: DFPI - submit a complaint

Collectors can't sue on expired debt

Under the federal debt collection rule (Regulation F), a debt collector must not bring or threaten to bring a lawsuit to collect a time-barred debt, meaning a debt whose statute of limitations has run out.

12 CFR § 1006.26(b) · read the rule

When a debt collector contacts you

A practical order of operations.

Don't pay or promise anything on the first call

Ask for the collector's name, company, mailing address and the amount they claim. In some states a payment or promise can affect an old debt, so check the rules above first.

Ask for validation in writing

Federal law gives you the right to a validation notice listing the debt, the creditor and your right to dispute. Dispute in writing within the validation period if the debt isn't yours or the amount is wrong.

Check the date of your last payment

Compare it with your state's time limit above. If the time limit has passed, a collector may not sue or threaten to sue you.

Never ignore a lawsuit

If you are served with court papers, respond by the deadline, even on an old debt. Being out of time is usually a defense you have to raise in court. Legal aid can help.

Report abuse

Threats, harassment and calls at odd hours break federal and state law. File complaints with your state regulator and the CFPB (links below).

Free help in California

Government complaint lines and nonprofit counseling. Be wary of anyone who charges upfront fees to settle debt.

California DFPI

Complaints about debt collectors licensed in California: dfpi.ca.gov/submit-a-complaint

CFPB complaint

File a complaint about a debt collector with the Consumer Financial Protection Bureau: consumerfinance.gov/complaint

Nonprofit credit counseling

Find an NFCC member agency: NFCC agency finder. If you are considering bankruptcy, use an agency on the U.S. Trustee approved list.

Links checked September 24, 2026.

Sources

Every rule on this page comes from these laws and official resources, checked on September 24, 2026. Read the current text before you act.

Primary sources

Debt collection laws in other states →

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