What Is the Statute of Limitations on Credit Card Debt in Florida?
The statute of limitations gives a time limit defined by statute (Florida Statutes §95.11) for credit card companies to collect active credit card debt. According to Fair-debt-collection.com, this time limit bars credit card companies from enforcing payment of the debt via the court system.
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Type of Debt
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The statute of limitations does not apply to all debt, but does apply to credit card debt. Debt that is not included includes taxes, student loans and child support debt.
Time
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The statute of limitations on credit card debt (open accounts) in the State of Florida is four years. Florida Statutes §95.11(3)(k) states that any legal action on contracts, obligations or liabilities that do not have a written contract has a statute of limitations of four years. This includes the sale of goods, merchandise, wares and store accounts. Depending on the type of contract you have with the credit card company, the statute of limitations starts running on the date of the last late payment or the date of the first collection letter.
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Toll
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When you hear the term "toll," this means that the statutory period stops for a period of time. The statute of limitations starts running pursuant to the contract, and you do not make payments for two years. You move out of state for three years, then decide to move back to Florida. When you come back to Florida, the statute of limitations starts running again. It picks up where it left off when it tolled (you left the state). You have an additional two-year period to wait for the statute of limitations to end.
Payments
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If you have credit card debt that is in the four-year period of the statute of limitations (for example, you have one year left), and you decide to make payments for a certain period of time, then stop making payments after a certain period of time, the statute of limitations starts over again. For example, if you stopped paying for three years and 11 months (leaving one month left for the credit card company to collect legally), then pay for three months, then stop paying again, the statute of limitations starts at the four-year period again. The credit card company can legally attempt collections for four more years.
Fair Credit Reporting and Statute of Limitations
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The time the bad debt is reported to credit agencies is different from the statute of limitations. Even though the statute has run out, bad debt can still be reported (up to seven to 10 years, depending on the type of debt). The bad debt does not go away when the statute of limitations stops. The creditors simply cannot legally collect from you.
Court
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Even after the statute has stopped, the creditor can take you to court. It is up to you to prove to the court that the statute of limitations has run out and that the creditor does not have legal standing to collect the debt. Be sure you have proof of the last payment on the account or the very first collection letter sent to you by the credit card company or its collection agency.
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References
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