A Full-Service
Litigation And
Defense Practice

3 facts about credit card debt statute of limitations

Credit cards are one of the most common causes of debt accumulation in the U.S. Some people overspend while others lose their income, but no matter what events lead to your situation, confronting the problem is the first step to resolving it. Many people think that if debt goes into collections, it will be absolved after the statute of limitations passes.

There are several things you should know about credit card debt and its statute of limitations.

The statute of limitations varies

It is a common misconception that credit card debt “expires” in seven years. This stems from the period of time which it typically appears on your credit report. According to Nerdwallet, the statute of limitations will vary from state to state, and it is not always simple to determine which state’s statute applies to your debt. Some states defer to the state of your creditor, for example. 

Debt collectors may still try to collect

Another common misconception is the idea that once the statute of limitations has passed, no further collection or legal action can be initiated. On the contrary, debt collectors may continue attempting to collect from you well past the statute of limitations indicates. They may even proceed with legal action, though if this happens, you may use the limitation as a defense.

Debt may still appear on your credit

The statute of limitations on credit card debt is unrelated to the period of time which it may appear on your credit report. The aforementioned seven years is the typical timeline, but this is not always true, and it can certainly be longer. Debt may remain on your report and affect your score for years after the passing of the statute of limitations.

If you are dealing with credit card debt, you should know that there are legal options available. Contact an attorney to learn more.

FindLaw Network