If bill collectors keep contacting you about an old credit account, check your records. If the statute of limitations is expired, your creditors may not be able to collect any money from you in court.
Statute of Limitations
A statute of limitations is the time period in which a credit card company, or a third-party collection agency, can file a lawsuit against a debtor.
State Rules
The statute of limitations differs in each state. In Rhode Island, the time limit for filing a lawsuit is 10 years, while in Arizona, the statute of limitations on credit card debt is three years.
Misconceptions
Even after the statute of limitations expires, a creditor or collection agency can still try to collect an out-of-statute debt by calling you or sending you letters. Negative information can remain on your credit report for seven years after you default on a credit card account.
Warning
The statute of limitations is a defense against a lawsuit, it does not make you immune to having one filed against you. If you learn that a creditor has filed a lawsuit against you for an out-of-statute debt, take action to have the lawsuit dismissed. If you don't, the creditor can still win a default judgment against you.
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