TABLE OF CONTENTS
Each state gives creditors and collection agencies varying times to file suit on unpaid and delinquent credit card debt. These times are formally known as statutes of limitations. Note that in all states, these limitations are governed by state laws – not federal.
Understanding the Statute of Limitations
Dependent on the state, debt collectors are allotted a finite timeframe to file suit against consumers with past due credit card balances. These statutes are designed to protect individuals from claims being filed after a reasonable amount of time has passed, and the original records might not be available. Most statute of limitations regarding credit card debt is between 3-10 years or longer. Any outstanding debt outside of the statutes is considered “time-barred debt” and cannot be collected on or sued over.
How Statutes of Limitations Work
Most state laws don’t specifically refer to credit card debt. They do use general terms like “open accounts” or “written contracts.” It is also important to note that state laws can change at any time, and judges interpret the statutes differently. These state laws can change anytime. Additionally, different judges can interpret these laws differently. Being such, court rulings are regularly overturned. The below list details individual state statutes of limitations for credit card card.
State Statutes for Credit Card Debt
- Alabama – 3 Years ( Title 6 Ch.2.Sec.37)
- Alaska – 3 Years (9.10.053)
- Arizona – 6 Years (HB 2412)
- Arkansas – 5 Years (4-3-118)
- California – 4 Years (Code of Civil Procedure S.337)
- Colorado – 6 Years (Colorado Revised Statutes Title 13 S.80-103.5)
- Connecticut – 6 Years (Chapter 926 Sec. 52-576)
- Delaware – 3 Years (Title 10, Sec. 8106)
- Florida- 5 Years (95.11)
- Georgia – 6 Years (9-3-24)
- Hawaii – 6 Years (657-1)
- Idaho – 5 Years (5-216)
- Illinois – 5 Years (Code of Civil Procedure 5/13-205)
- Indiana – 6 Years (Title 34 Art. 11, 2-9)
- Iowa – 5 Years (Ch. 614.1.4)
- Kansas – 3 Years (60.512)
- Kentucky – 5/15 Years (413.120 and 413.090)
- Louisiana – 3 Years (Civil Code Sec.2 Art.3494)
- Maine – 6 Years (14-205-752)
- Maryland – 3 Years (Section 5-101)
- Massachusetts – 6 Years (General Laws Part III Title V Ch. 260-2)
- Michigan – 6 Years (Ch.600.5807.8)
- Minnesota – 6 Years (Civil Procedure Ch.541.05)
- Mississippi – 3 Years (15-1-29)
- Missouri – 5 Years (Ch. 516-120)
- Montana – 8 Years (11-0-190)
- Nebraska – 4 Years (25-206)
- Nevada – 4 Years (11-190)
- New Hampshire – 3 Years (382-A:3-118 (g))
- New Jersey – 6 Years (2A:14-1)
- New Mexico – 4 Years (37-1-4)
- New York – 6 Years (Civil Practice Law & Rules 2-213)
- North Carolina – 3 Years (Civil Procedure 1-52.1)
- North Dakota -6 Years (28-01-06)
- Ohio – 6 Years (Courts-Common Pleas, Ch. 2305.07)
- Oklahoma – 5 Years (5 12-95 A (1))
- Oregon – 6 Years (Oregon Revised Statutes, Civil Procedure Ch. 12.080)
- Pennsylvania – 4 Years (Judicial Procedure 42 Pa. C.S 552 (a))
- Rhode Island – 10 Years (9-1-13)
- South Carolina – 3 Years (Code of Laws Title 15 Ch. 3 Sec.530)
- South Dakota – 6 Years (15-2-13)
- Tennessee – 6 Years (Title 28 3-109)
- Texas – 4 Years (Civil Practice and Remedies Code S.16.004)
- Utah – 6 Years (78B-2-309)
- Vermont – 6 Years (9A-3-118)
- Virginia – 3 Years (8.01-246)
- Washington – 6 Years (Revised Code of Washington 4.16.040)
- West Virginia – 10 Years (55-2-6)
- Wisconsin – 6 Years (893.43)
- Wyoming – 8 Years (1-3-105)
Conclusion
Creditors and collection agencies should understand the statutes of limitations according to their state. This will help them know if the credit card debt is still collectible and receive a judgment for compensation. If your collection business requires an innovative and secure payment platform, don’t hesitate to give Payment Savvy a call. Since 2010, our expert team has worked specifically within the ARM industry to provide custom and all-in-done payment solutions for agencies of all sizes.
PAYMENT SOLUTIONS
FEATURED INDUSTRIES
RECENT POSTS:
High-Risk Business with Stripe, PayPal, Square, Venmo
Certain activities, or the industry you work in, may cause payment processors to characterize your merchant account as high risk. It isn’t uncommon for some businesses to process online payments and get higher-than-average returns, but your reputation and industry play an important role. Having your merchant account suspended will undoubtedly lead to revenue loss and…
Instant ACH Transfers Online
Our current era has been shaped by digitization with a fundamental impact on all sectors, including banking and finance, where it has brought unprecedented convenience, security, and efficiency. The backbone of these developments is none other than America’s Automated Clearing House (ACH) which facilitates seamless electronic transactions between banks and financial institutions within its network.…
A Comprehensive Guide to FedNow
The Federal Reserve Bank is currently developing a new instant payment service called “FedNow” that will allow financial institutions to make instant payments. The FedNow Service will begin operating in July 2023 and it is the first U.S. government-created and -backed portal that will enable financial institutions to send and receive payments in real-time 24…