Kentucky Statute of Limitations for Credit

While the Kentucky statute of limitations on debt varies depending on the type of debt, revolving accounts such as credit cards fall under the jurisdiction of open-end credit. If your credit debt is beyond the statute of limitations, creditors have limited legal recourse for collection. Seek the advice of qualified legal council in your state regarding your rights and responsibilities.

Laws

Under section 413.120 of the Kentucky Revised Statutes, the statute of limitations on open-ended or credit-card debt is five years after the cause of action on the account. A cause of action means the facts are sufficient for a creditor to seek legal restitution. Depending on your credit agreement, the statute of limitations clock begins ticking when you stop paying as agreed or when the account goes into default. The law prohibits creditors from suing you for debts beyond the statute of limitations.

Considerations

Your debt doesn't expire. Lenders can still try to collect on debt beyond the statute of limitations; they just can't sue you for it. Until the debt is paid or the lender releases you from your obligation, they may use any legal means available to them under the Fair Debt Collection Practices Act. They may contact you by phone, mail, fax or telegram as long they don't harass you. Additionally, a debt collector may not use deceptive practices to try to collect. A deceptive practice includes a debt collector telling you that they plan to sue you when they have no legal right to do so.

Dealing With Collections

If your debt is beyond the statute of limitations, you don't think the debt is valid or you just want creditors to stop calling, you may send them a "no contact" letter stating you no longer wish to be contacted about the debt. With the exception of notifying you of further action, they cannot call you again. If the debt is beyond the expiration date and they are prohibited from contacting you, a creditor's options are somewhat limited. However, if a debt collector believes the debt is within the statute of limitations and does sue you, do not ignore the summons. Bring proof of your statute of limitations claim to the court on the specified date. Not showing up for a court date may result in a default judgment against you.

Resetting the Clock

Making a payment on, admitting responsibility for or agreeing to a payment plan on expired debt may reset the statute of limitations. Lenders may sell debt to collection agencies when they believe the debt will not be repaid. Be wary of debt collectors trying to "re-age" the debt to the date that they took possession of it. Your agreement and any default happened with the original creditor and transferring the debt to an outside collection agency is not a cause for "re-aging."