How Long Can a Credit Card Debt Be Collected in the State of Maryland?

In the state of Maryland, the statute of limitations for credit card debt expires three years after it is written off by the original creditor. While it is likely your account could be sold many times over and attempts to collect made after the statute of limitations expires, you can assert your right of protection under Maryland state law and any lawsuit arising from a collection agency tossed out of court.

Statute of Limitations

At three years, Maryland is on the low end of the statute of limitations spectrum. Many other states have time periods that run years longer for open accounts, which is the category credit card debt is classified under. Rhode Island is the longest, with a 10-year statute of limitations for credit card debt. The idea of a statute of limitations evolved from a generally held public belief that a person should not be penalized indefinitely for bad debt, and allowed to get on with life at some point.

Debt Scavengers

It's not unusual that you start receiving phone calls and threats of a lawsuit just prior to the expiration of the statute of limitations on a particular debt. The way this part of the financial industry works is that some debt collection offices, referred to as "debt scavengers," buy old, delinquent accounts by the thousands, paying pennies on the dollar. Their theory is that it is a viable business model if they can shake loose a little bit of money from a certain percentage of debtors.

SOL Defense

If, in fact, the statute of limitations on your credit card debt has already expired, you should never admit to the debt or make partial payment arrangements in the event you are contacted about it by phone or mail. If you make either of these mistakes, it legally turns that old account into an active account and resets the statute of limitations clock back to zero. You're now liable again and creditors can try to collect for another three years.

Other Debt

While some states differentiate between different kinds of debt when it comes to setting a statute of limitations, Maryland only has one distinction. Open accounts, written contracts and oral agreements all have a time limit of three years. The only debt type with a different time frame is a promissory note, which is set at six years. If you're unsure when the original creditor reported your credit card bill as bad debt, order a free credit report from one of the major credit bureaus---Experian, Equifax or TransUnion (see Resources).