Statutes of Limitation on Credit Card Debt Varies from State to State

CreditCards.com reporter Fred Williams has posted an informative report on the statute of limitations that apply to credit card debts. To determine how long a credit card issuer can file suit, a consumer has to figure out which state’s law applies, how long the statute is in that state, and figure out when the statute began to run on the debt. Each of our 50 states has different laws that apply. In California the statute of limitations is 4 years. Generally, the statute begins to run when the debt first becomes delinquent. The reporter found that some 17 states have...

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Statute of Limitations Defense to Debt Collection? Not So Fast

In May 2006 a debt collector sued an Oregon consumer–in Oregon–for a credit card debt. The consumer had made her last payment in November 2001 before she defaulted. The credit card agreement said that New Hampshire law would apply to the agreement. In New Hampshire, the statute of limitations for an action on a credit card is three years. So the consumer has a statute of limitations defense to the 2006 lawsuit, right? Wrong, according to today’s opinion by the Ninth Circuit Court of Appeals in Avery v. First Resolution Management Corp. New Hampshire law also provides that the statute...

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