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Credit Card Debt Statute of Limitation
For the novices, a credit card debt statute of limitation is the period of time after which creditors cannot take you to court to recover debt. This time period depends on the last payment date or last credit card activity date. According to the Federal Trade Commission, different states have different credit card debt statue of limitations for different type of debt contracts like oral, written, promissory notes, and open-ended accounts.
The credit card debt statue of limitation came as a result of overzealous debt collectors digging up old debt accounts and calling up debtors to pay their debt. Illegal operations occurred where these scam artists paid for old accounts to capitalize on them hoping to turn a profit. Without the credit card debt statute of limitation laws, fake creditors would not stop at threatening to sue and make harassing phone calls.
As aforementioned, each state has its own credit card debt statue of limitation rules. If indeed you are experiencing creditor calls from long past accounts, be smart. Never provide payment and check your credit report from time to time. Remember, the credit card statute of limitation will come into play, and old debt accounts will not show up. Also, take steps to record all harassing phone calls and mails.
Another tip is to do a search for Fair Debt Collection Practices Act rules. Those fake creditors who are unaware of the credit card debt statue of limitation will be breaking these rules. The credit card debt statute of limitation reserves consumers the right to reject all debt collection efforts from past accounts. A true collection agency or creditor will never let a debt slide, unless bankruptcy proceeds or debt negotiation tactics occur.
Refer to your state's own credit card debt statute of limitation rules today to see where your old account stands.