Getting a call or letter about an old credit card balance can raise an uncomfortable question: how long can credit card debt be collected? The answer depends on the state, the type of debt and what has happened with the account over time.
A debt does not automatically disappear because it is old. However, states generally set a statute of limitations – a time limit for using a lawsuit to collect certain debts. The Consumer Financial Protection Bureau (CFPB) says most states or jurisdictions have statutes of limitations of three to six years for debts, although some periods are longer. The rules can also depend on the type of debt and the law that applies to the agreement.
It’s also important to separate three different timelines: how long a creditor may have to sue, how long a judgment can be enforced, and how long negative information can remain on your credit report.
Quick Answer: How Long Can Credit Card Debt Be Collected?
In many states, the statute of limitations for bringing a lawsuit is measured in years, often somewhere in the three-to-six-year range, but the exact period varies. Some states have longer limits. Find yours here.
Once the applicable statute of limitations expires, a debt may become time-barred, meaning a debt collector can no longer legally sue or threaten to sue you to collect it under federal rules that apply to covered debt collectors. However, time-barred debt does not necessarily disappear, and state law may still allow some collection contact.
The familiar seven-year rule, as explained by the CFPB, is different. It generally concerns credit reporting, not whether the debt exists or whether a collector can sue.
The Three Timelines People Often Confuse
Time to Sue: The Statute of Limitations
The statute of limitations is the period during which a creditor or debt collector may have the legal right to file a lawsuit to collect a debt.
The exact deadline depends on applicable state law, the type of debt and, in some situations, the terms of the credit agreement. The CFPB notes that the period can also be affected by where you live and by the law specified in your credit agreement.
Time to Enforce a Judgment
If a creditor sues and wins, the resulting judgment is different from the original debt.
A judgment can have its own enforcement period, which may be longer than the original statute of limitations. Depending on state law, a creditor with a judgment may have collection tools such as wage garnishment, bank levies or property liens available.
Time a Debt Can Stay on Your Credit Report
Credit reporting follows a separate set of rules.
Under the Fair Credit Reporting Act, accounts placed for collection or charged off generally cannot be included in consumer reports for more than seven years, subject to the law’s specific rules.
So, seven years does not mean the debt is automatically forgiven. A debt can stop being legally enforceable through a lawsuit before seven years have passed, or it may remain an obligation after it can no longer be reported.
When Does the Clock Start on Credit Card Debt?
The starting point for a statute of limitations varies by state. In some states, the period begins when a required payment is missed. In others, it may be tied to the date of the last payment or another event defined by state law.
That makes the date of the last payment important, but it does not necessarily answer the question by itself.
Can a Payment Restart the Clock?
In some states, making a partial payment or acknowledging an old debt in writing can restart the statute of limitations. The Federal Trade Commission (FTC) specifically warns that consumers should understand their state’s rules before making a payment or promising to pay an old debt.
Because the consequences vary by state, someone dealing with an old account may want to understand the applicable law before making a payment or written acknowledgment.
Can Collectors Still Contact You After the Deadline?
A time-barred debt is not necessarily erased. In states that allow collection contact on time-barred debts, a collector may still call, email or send letters asking for payment, provided the collection activity complies with applicable law.
Federal Regulation F prohibits covered debt collectors from bringing or threatening to bring a legal action to collect a time-barred debt.
This is where language such as “this is an attempt to collect a debt” may appear in a letter. That statement signals that the communication concerns debt collection; it does not, by itself, tell you whether the debt is still within the statute of limitations.
If a lawsuit arrives, do not assume the debt is too old to matter. The FTC warns that ignoring a lawsuit can result in a default judgment.
How Long Can a Creditor Come After You by Debt Type?
Credit Card Debt
Credit card debt is subject to the statute of limitations that applies under the relevant state law and debt agreement. The deadline can vary, so an old balance should not be judged solely by its age.
A debt buyer may also contact you after purchasing an account. Selling the debt does not automatically create a brand-new debt or reset the clock, although other events may affect the applicable limitation period.
Medical Debt
Like other consumer debts, medical debt may be subject to a state statute of limitations. The applicable period depends on state law and the nature of the obligation.
Medical debt also has separate credit-reporting considerations. For example, nationwide credit reporting companies announced changes that generally kept unpaid medical collections off credit reports for a year and removed paid medical collections and medical collections under certain dollar thresholds from reporting.
Those credit-reporting practices should not be confused with the legal deadline for collecting or suing over the debt.
Personal Loans and Installment Debt
Personal loans and other installment debts can have different limitation periods because the legal classification and contract may differ from those of credit card accounts.
Judgments
A judgment is treated separately from the original account. If a creditor already obtained a judgment, the relevant question is generally how long the judgment remains enforceable under state law.
Government and Tax Debt
Some government-related debts follow special rules. Federal student loans, for example, can be subject to different rules than ordinary consumer debts.
What If a Collector Contacts You About an Old Debt?
If a company contacts you about an old account, consider taking these steps:
- Don’t rush to pay or acknowledge the debt. A payment or written acknowledgment can affect the statute of limitations in some states.
- Review the collection notice. Look for the creditor’s name, amount claimed and information about your rights.
- Request or review debt validation information. Federal law provides consumers with rights concerning validation of debts.
- Determine how old the debt is. Gather account statements and information about the last payment or other relevant activity.
- Check the law that applies. Your state’s rules may determine how long the creditor has to collect a debt through a lawsuit.
- Respond to any lawsuit. Even if you believe the debt is time-barred, ignoring court papers can result in a judgment.
If the situation is complicated, legal aid or an attorney familiar with your state’s debt-collection laws may help explain your options.
Common Mistakes to Avoid
A few misconceptions can make old debt harder to understand:
- Assuming debt disappears after seven years. Seven years generally relates to credit reporting, not whether the underlying debt exists.
- Assuming every state has the same deadline. State laws differ.
- Making a small payment without understanding the consequences. In some states, payment can restart the statute of limitations.
- Ignoring a court summons. A collector may obtain a default judgment if you fail to respond.
- Assuming a new debt buyer resets the clock. A debt’s ownership can change without automatically creating a new limitation period.
People Also Ask
How Long Can You Be Chased for Credit Card Debt?
It depends on state law and the circumstances of the account. A collector may sometimes continue contacting you after the statute of limitations expires, but a covered debt collector generally cannot sue or threaten to sue over a time-barred debt.
Can a 10-Year-Old Credit Card Debt Still Be Collected?
It can still exist, and collection attempts may still occur in some circumstances. Whether a creditor can sue depends on the applicable statute of limitations and whether anything affected the limitation period. A 10-year-old debt should not automatically be assumed to be either collectible in court or completely gone.
What Happens After Seven Years of Not Paying Debt?
Seven years generally relates to how long certain negative information can appear on a credit report. It does not automatically erase the debt or determine whether a lawsuit is allowed.
Is It True That After Seven Years Your Credit Is Clear?
Not necessarily. Certain negative information generally has a seven-year reporting period, but credit reports can contain other information, and the seven-year reporting rule does not mean every debt or negative item disappears in every circumstance.
How Long Can a Medical Bill Be Collected?
There is no single federal collection deadline for every medical bill. The applicable statute of limitations generally depends on state law and the nature of the debt. Medical debt also has separate rules and industry practices concerning credit reporting.
Conclusion
So, how long can credit card debt be collected? There is no single answer for every account. The time limit can depend on state law, the type of debt and what has happened with the account.
It also helps to separate collection, lawsuits and credit reporting. A debt may be too old for a lawsuit but still exist and generate collection attempts. A negative account may also have a seven-year credit-reporting period that is separate from the statute of limitations.
If a collector contacts you about an old credit card, medical bill or other debt, slow down before making a payment or acknowledging the account. Gather information about the debt, understand the applicable time limits and pay close attention to any legal notices and legitimacy.
