Florida's Statute of Limitations for Credit Cards

When a debtor defaults on a credit card debt, most states allow the creditor to take legal action against him. Creditors do not have an indefinite period of time to use the court system, however; they must take this route before the statute of limitations expires. Florida creditors have approximately four years to use the courts to collect credit card debt after a debtor defaults.

Controversy

Florida's statute of limitation laws state that open accounts have a statute of limitations of four years, while debts entered into by written contract have a statute of limitations of five years. Many credit card companies require debtors to sign a contract when they apply for credit. Thus, it is unclear whether the law limits credit card debt collectors to a window of four years or five. As of 2011, the state of Florida considers credit card debt to have a statute of limitations of four years, according to BCSAlliance, because debtors may receive credit via telephone applications rather than written contracts.

Importance

The statute of limitations is the maximum amount of time that a creditor has to collect a debt after it goes into default. Debtors should note that the date of default is what triggers the statute of limitations, not the date the debt was incurred. For example, if a debtor charged items to his credit card on Jan. 3 and did not pay his credit card bill at the end of the month, the statute of limitations would begin on that date, not on Jan. 3.

Domestic Judgment

A credit card company may sue a debtor in an attempt to collect a debt as long as it does so before the statute of limitations expires. If the creditor is successful, the court enters a judgment against the debtor, requiring the debtor to pay back the debt plus, in some cases, attorney's fees. In Florida, domestic judgments -- judgments entered in a U.S. court -- have a statute of limitations of seven years. Thus, the creditor can attempt to collect the judgment for several years after the statute of limitations for the original debt has expired.

Debt Collectors

Once the statute of limitations expires, the creditor cannot use the court system to attempt to collect the debt. Thus, it cannot sue the debtor or request wage garnishment. However, debt collectors are still allowed to contact the debtor regarding the debt as long as they follow debt collection laws such as not harassing or threatening the debtor and ceasing contact at work if the debtor requests that they only contact her at home.