Statute of Limitations on Credit Card Debt in Washington State

Credit card debt can be an overwhelming burden. The debt itself, and any delinquency in repaying it, can hurt your credit score. This makes it difficult to qualify for loans, mortgages, new credit cards, bank accounts, and other financial tools and services. The hassles of collection can disrupt your life with aggressive phone calls and letters. Then there is the fear of a lawsuit. In Washington state, there is a statute of limitation on the collection of credit card debts.

A Second Chance

Credit card debts do not stay on your record forever, nor can creditors permanently collect on them. If you have bad credit card debt, it will eventually go away. The length of time that takes depends on Washington law. The purpose of a statute of limitation is not only to protect the legal system from a glut of suits, but also to protect individuals from their own past mistakes, eventually allowing them to move on with their lives

Six Years

Washington state law does not specifically refer to "credit card debt" in its statutes of limitation on debt collection. According to the Revised Code of Washington 4.16.040, the statute of limitation is six years when it comes to collecting an "account receivable." According to the law, an account receivable is "any obligation for payment incurred in the ordinary course of the claimant's business or profession." This applies to most credit card debts. Thus, if you are and have been a Washington resident and have any bad credit card debts that are more than six years old, the card company can no longer collect on them.

Restarting the Clock

According to the Washington Attorney General, if you make a payment on your credit card debt at any point within the six-year window, the clock resets and the claimant has another six years to collect the remaining debt from you.

Collecting Anyway

Technically, the statute of limitations only applies to a lawsuit. Collection agencies may still try to collect from you after the six-year window is up. They just can't sue you. The Federal Trade Commission advises that most courts have found this action to be lawful within the federal Fair Debt Collection Practices Act.