According to the Federal Trade Commission, the statue of limitations on most debts is three to 10 years. For example, in Florida, the statue of limitations on credit card debt is four years. However, even if the statue of limitations has expired, a debt collector can still attempt to collect. It just won't be able to sue you in court to collect on the debt.
Florida Statue of Limitations
In Florida, the statue of limitations, SOL, is four or five years depending on the financial agreement or contract. For oral contracts, the SOL is four years as is for open-ended accounts, which is defined as credit cards or revolving credit accounts. A promissory agreement such as on a mortgage loan and written contracts signed by you and your creditor have a SOL of five years.
Time-barred Debt
Time-barred debt is debt that still exists beyond the SOL. Creditors cannot sue you in court for a time-barred debt. Yet, a creditor can still try to collect. If you make a promise to pay a time-barred debt in Florida, the agreement must be in writing and must have your signature.
Fair Collection Debt Practices Act
The Fair Debt Collection Practices Act, FDCPA, regulates debt collections practices and where legal action can be filed. According to the FDCPA, a creditor can only sue you in the jurisdiction in which you entered into a loan agreement. For example, if you defaulted on a credit card account when you lived in Connecticut and moved to Florida, a creditor cannot sue you in the Florida court system.
Re-aging Debt
Re-aging of debts occurs if you make a payment on a debt that is approaching or has exceeded the SOL. Even a small payment can reset the time limit on an old debt. In some cases, junk debt collectors attempt to force a re-aging of an old debt by reporting it to the credit rating agencies as new. This is an illegal practice. Consumer advocacy groups recommend ignoring time expired debts altogether or replying back to the creditor that you do not recognize the debt.
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