CA AB1526

Prohibits debt collectors from sending written communications attempting to collect time-barred debts without providing specific written notices to the debtor.

Requires debt collectors to notify debtors in writing that they cannot be sued for time-barred debts, but may have the debt reported to credit reporting agencies if still within the reporting period under federal law.

Requires a second notice stating debt collectors will not sue or report the debt to credit agencies if the debt has passed the federal Fair Credit Reporting Act obsolescence date.

Clarifies that after the 4-year statute of limitations period expires for actions on book accounts, account stated accounts, or mutual/open current accounts, no person may bring suit, initiate arbitration, or pursue other legal proceedings to collect the debt.

Specifies that the statute of limitations period may only be extended pursuant to Section 360 of the Code of Civil Procedure.