Definition of the Accrual of the Right of Action for Credit Card Debt

Accrual of the right of action for credit card debt is a concept used to determine when the clock starts ticking for purposes of computing the statute of limitations period for a civil action filed by a creditor.

Statute of Limitations

The statute of limitations is a legal principle that precludes a plaintiff from filing suit against a defendant after a specified period of time has elapsed from the date on which the controversy arose. Each state determines its own statute of limitations periods for various legal causes of action, whether it is for fraud, personal injury or breach of contract.

Starting Clock

Most statute of limitations provisions prohibit filing a civil action in court after a designated number of years has passed from the date the cause of action accrued. For purposes of credit card debt, a creditor's cause of action accrues on the date the account first went into default or became delinquent.

Significance

Any lawsuit filed in court by a credit card company that is outside the specified statute of limitations period is said to be time barred and must be dismissed by the court. Once dismissed, a credit card company cannot use the legal system to enforce payment of the credit card debt.