What Is the Statute of Limitations on Credit Card Debt in Washington?

Statute of limitations is a statute in common law that establishes the maximum time after an event that a legal proceeding based on that event may be initiated. In the State of Washington, the statute of limitations on credit card debt is three years. After this time has lapsed, if the creditor tries to force you to pay the debt, you have the legal right not to repay the debt.

Start of Statute of Limitations

The statute of limitations begins the first time you fail to make a payment on your credit card account or when the credit card company sends you a demand letter for the full amount due. You need to check your credit card agreement to determine which of these is applicable in your case.

End of Statute of Limitations

Once you determine the start date of the statute of limitations based on your credit card agreement, you can calculate the exact date the statute of limitations will expire in your particular case. In Washington, this date will be exactly three years after the start date. After the statute of limitations has ended, the credit card company can no longer sue you over this debt.

Partial Payments And Repayment Promises

In Washington, a partial payment on the debt or a written promise to repay the debt during the three-year statute of limitations period will result in a reset of the statute of limitations. In other words, by making a partial payment or a written promise to repay the debt, you will be restarting a new three-year statute of limitations.

State Selection

If the credit card company is incorporated in a state other than Washington, you may be subject to that states statute of limitations on credit card debt that could be longer than in Washington. Also, if you moved to Washington after signing the credit card agreement, you might also be bound by the statute of limitations in the state where you signed the agreement. Generally, it is up to the credit card company to decide which of these states they want to sue you in, and the statute of limitations would then be applicable from the state you are being sued in.

Debt Collection After Statute of Limitations

A credit card company or a collection company can still attempt to collect the debt after the statute of limitations has passed. However, the credit card company or the collection company will not be able to sue you after the statute has expired, and you have the legal right not to pay. The same statute of limitations also does not apply to credit reporting. The credit bureaus have their own statute of limitations for reporting adverse information. For the purposes of credit bureaus, negative credit card information can typically be reported for seven years on your credit report.

References

• Credit Info Center: Statute of Limitations on Debts