Legal Question in Credit and Debt Law in California

Under California law, the statute of limitations is four years from the time the account is "settled," which is the moment that no further purchases on the account are contemplated and the only remaining entries on the account are for payments made against what is owed

The exact date of "settlement," can be difficult to ascertain precisely. It is safe to say, however, that the creditor has at least four years from the date of the last purchase to file suit.