What Is the Statute of Limitation for Credit Card Debt in Florida?

The use of credit cards can work as a convenient payment option for Florida consumers but it can also lead to credit card debt. If you use credit cards, you have a legal requirement to make payment on that debt; therefore, it's a good idea to learn how long the statute of limitations is for credit card debt in Florida.

Significance

If you use a credit card, you are required by the lender to pay all debt accumulated on that card in a timely manner, either in one lump sum payment or over the course of months. Although you owe the debt, however, the laws of the State of Florida limit the amount of time you are responsible for it. After this time, referred to as the statue of limitations, you no longer have a legal obligation to pay. According to Bankrate, the statue of limitations for credit card debt in Florida is four years.

Consequences

While the debt is within the statue of limitations, the credit card issuer may decide to sue you in civil court to recover payment of the debt. The goal is to obtain a judgment against you, which is a decree issued by the court that indicates the amount of money you are required to pay the card issuer. Judgments have their own separate statue of limitations. In Florida, the owner of a judgment can attempt to collect on that judgment for up to 20 years from the date the court issued it. With a judgment, the creditor can garnish your wages, seize your bank account or place a lien on your property.

Considerations

A credit card company can hire a collection agency to collect the debt on its behalf. The agency will place a collection account for the debt on your credit report. This means the debt will appear on your report twice: once under "Accounts" from the original creditor and again under "Collections" from the collection agency. Under the Fair Credit Reporting Act (FCRA), negative accounts, including a collection account, can appear on your credit report for up to seven years.

Warning

Watch out for zombie debt. Zombie debt refers to debt that has passed the state's statute of limitations. Collection agencies purchase old debt from creditors for a cheap price then come after consumers for that debt. By law you are not required to pay it; however, the collection agency can sue you for it. If you appear and inform the judge that the debt has expired, the court will dismiss the case. If you fail to appear however, the court will issue a default judgment against you and you are now legally responsible for that debt.