Only now does the truth appear to be emerging that most everyone already knows – the economy never really emerged from the Great Recession a decade ago. Many women have resorted to starting micro-enterprises in order to keep bread on the table. Millennials are suffering under massive student loan debt, afraid to marry or buy homes. Some people work two or three jobs to earn a “living.”

Since many have had to resort to heavy credit card debt in order to stay afloat, at Keel Associates, a consumer and business debt solutions firm, we are often asked about the statute of limitations on credit card debt. There are simple answers by state, but the statute of limitations is only a piece of the picture if you owe credit card debt.

What is a Statute of Limitations –

According to NerdWallet, the statute of limitations is the time period within which a creditor may sue you for an outstanding debt. The statute of limitations begins when the debt is owed and has not been paid. The statute of limitations in your state will vary by the type of debt you owe. Here, we will focus upon credit card debt.

Statute of Limitations on Credit Card Debt –

Most all states set the statute of limitations for open-ended debt, such as credit card debt, at three to six years. As of 2019, there are only two states with a longer statute of limitations on credit card debt, Rhode Island at 10 years and Wyoming at eight years.

Does the Statute of Limitations End My Obligation? –

No, the statute of limitations solely limits the time frame for suing you. According to The Balance, you still owe the debt until either the creditor cancels the debt, you pay it or you are able to use the bankruptcy process to discharge it.

What About My Credit Score? –

According to the U.S. government’s Consumer Financial Protection Bureau (CFPB), your credit score will be adversely affected for seven years on a debt that you are no servicing. Your protection under the Fair Credit Reporting Act kicks in at the seven year mark and ends the creditor’s ability to post the blemish on your credit record.

Creditor Contact –

The creditor can continue to contact you in order to ask you to repay the debt after the statute of limitations has passed. According to The Balance, if they are still contacting you, you can send a cease and desist letter to get them to leave you alone.

Important Points –

According to the Consumer Financial Protection Bureau, the statute of limitations in your state is often extended when you admit in writing you owe the debt or make a payment.

According to The Balance, some creditors try to sue people for credit card debt after the statute of limitations has passed. That is why it is important to keep records of when you stopped being able to make payments and go to court if sued in order to fight for your rights. The CFPB states that it is a violation of the Fair Debt Collection Practice Act if a creditor sues you for a debt after the statute of limitations has passed.

Also, according to WalletHub, if the creditor wins a lawsuit against you in court, your statute of limitations protections are permanently removed.

Contact us at Keel Associates if you are struggling under heavy credit card debt. We have solutions to help consumers and businesses get their finances back on a safe and secure footing