STATUTE OF LIMITATIONS (SOL) FOR DEBT COLLECTORS
You may be under the impression that it is a violation to be sued by a debt collector for debts if the statute of limitations has expired under the Fair Debt Collection Practices Act (FDCPA)... and you would be absolutely correct in your understanding! If a debt collector sues you for a debt that has an expired statute of limitations, then that is a violation of the Fair Debt Collection Practices Act (FDCPA) and you may be entitled to sue the debt collector for $1000 in statutory damages.
What's the deal with the Statute of Limitations?
The idea behind statutes of limitations is mainly one of general practicability and fairness, especially against debt collectors or collection agencies. It is never fair to let a legal matter, like an outstanding debt hang over someone's head for eternity. There needs to be a distinct end to each legal conflict in order to let the parties involved move on with their lives.
In the case of collection of debts, a plaintiff (creditor or debt collector/collection agency) must decide whether to initiate a lawsuit in order to recover for the debt if they are not being paid. The law will not tolerate a creditor or debt collector who waits, delays for effect, or who is negligent or forgetful for maintaining their rights. After a period of time has passed, the chance for the debt collector to sue the debtor disappears. Afterall, witnesses may move, memories fade, and evidence and documents get lost or destroyed.
How Long is the Statute of Limitations for Debt Collectors?
The lengths of time for statutes of limitation depend on the state that you live in and the type of contract underlying the debt. Some states have fairly short statute of limitations, others can be quite long. The longest statutes of limitation are generally those regarding the recovery of judgments after a lawsuit. Check below in the chart for your state's statute of limitations for creditors and debt collectors to sue you for a debt.
When Does the Statute of Limitations Start and Stop?
There are many interesting controversies about when statutes of limitation begin and end. In cases of a debt, the statute of limitations usually beings from the date of delinquency or last payment. However, be aware of circumstances where the statute of limitations may be extended. For example, the statute of limitations may be tolled (stopped) if you leave the state or become incapacitated.
Definitions and Terminology
Certain terms apply to different types of debt. Those terms have been defined below:
Definition of Oral Contract: An oral contract is an agreement that was made verbally. No contract was written or signed when the agreement was made. Oral contracts are legally binding, but they are harder to prove in court.
Definition of Written Contract: A written contract is an agreement made on a printed document that has been signed by both the lender and the borrower. Written contracts are legally binding and easier to enforce than oral contracts.
Definition of Promissory Note: A promissory note is a written contract that includes a specific promise to pay. The promissory notes includes the interest rate, repayment schedule, and consequences of default.
Definition of Open-Ended Account: An open-ended account is an account that has a varying, revolving balance. A credit card is an example of an open-ended account. (A credit card is always considered an open account -- established by the Truth-in-Lending Act.)
California Statute of Limitations Chart
|
California |
Years |
Statute |
|
Personal Injury |
2 |
Civ. Proc. §335.1 |
|
False Imprisonment |
1 |
Civ. Proc. §340(c) |
|
Libel/Slander |
1 |
Civ. Proc. §340(c) |
|
Fraud |
3 |
Civ. Proc. §338(d) |
|
Injury to Personal Property |
3 |
Civ. Proc. §338(b), (c) |
|
Professional Malpractice* |
1 |
§340.6 |
|
Trespass |
3 |
Civ. Proc. §338(b) |
|
Collection of Rents |
4 |
Civ. Proc. §337.2 |
|
Written Contracts |
4 |
Civ. Proc. §337 |
|
Oral Contracts |
2 |
Civ. Proc. §339 |
|
Collection of Debt on Account (Book & Stated Accounts) |
4 |
Civ. Proc. §337 |
|
Judgments |
10 |
Civ. Proc. §337.2 |
|
* 1 yr. from discovery, max. of 4 yrs. from the wrong Civ. Proc. §340.6; Medical: 1 yr. from discovery, 3 yrs. if injury known Civ. Proc. §340.5; Vet.: 1 yr. for injury or death of animal Civ. Prop. §340(c) |
||
Minnesota Statute of Limitations Chart
|
Minnesota |
Years |
Statute |
|
Personal Injury |
2 |
§541.07(1) |
|
Libel/Slander |
2 |
§541.07(1) |
|
Fraud |
6 |
§541.05(6) |
|
Injury to Personal Property |
6 |
§541.05(4) |
|
Professional Malpractice |
2 |
§541.07(1) |
|
Trespass |
6 |
§541.05(3) |
|
Collection of Rents |
6 |
§541.05(1) |
|
Written Contracts |
6 |
§541.05(1) |
|
Oral Contracts |
6 |
§541.05(1) |
|
Collection of Debt on Account (Book & Stated Accounts) |
6 |
§541.05(1) |
|
Judgments |
10 |
§541.04 |
State of Limitations for Debt Collectors in all 50 states
The following chart shows the State of Limitations for Debt Collectors in all 50 states. Please note that the chart is for informational purposes only. We do not guarantee that the information is accurate. You should consult with a licensed attorney in your jurisdiction. To check your individual state laws for statute of limitation or other regulations, simply click on the state name below to go directly to the state's website that contains the codes and regulations.
|
State |
Oral Agreements |
Written Contracts |
Promissory Notes |
Open Accounts (Credit Cards) |
Statute |
|
6 |
6 |
6 |
3 |
§6-2-33 - §6-2-39 |
|
|
3 |
3 |
3 |
3 |
§09.10.055 |
|
|
3 |
6 |
6 |
3 |
§12-548; §12-543(2) |
|
|
3 |
5 |
5 |
3 |
§16-56-111 |
|
|
2 |
4 |
4 |
4 |
Civ. Proc §337; §339 |
|
|
3 |
3 |
3 |
3 |
§13-80-101 |
|
|
3 |
6 |
6 |
6 |
§§52-576; 52-581 |
|
|
3 |
3 |
3 |
3 |
Tit. 10 §8106 |
|
|
3 |
3 |
3 |
3 |
§§28:2-725; §12-301(7)§ 12-301(8) |
|
|
4 |
5 |
5 |
4 |
§§95.11(2)(b); 95.11(3)(k) |
|
|
4 |
6 |
6 |
4 |
§9-3-24 - §9-3-26 |
|
|
6 |
6 |
6 |
6 |
§657-1 |
|
|
4 |
5 |
5 |
4 |
§5-216; §5-217 |
|
|
5 |
10 |
10 |
5 |
735 ILCS 5/13-206; 735 ILCS 5/13-205 |
|
|
6 |
10 |
10 |
6 |
§34-11-2-11 |
|
|
5 |
10 |
5 |
5 |
§614.1(5); §614.1(4) |
|
|
3 |
5 |
5 |
3 |
§60-511(1); §60-512(1) |
|
|
5 |
15 |
15 |
5 |
§413.090(2); §413.090(1) |
|
|
10 |
10 |
10 |
3 |
§3499; §3494(4) |
|
|
6 |
6 |
6 |
6 |
Title 14§752; Tit. 14 §751 |
|
|
3 |
3 |
3 |
3 |
Cts. & Jud. Proc. §5-101; 5-102(a)(5) |
|
|
6 |
6 |
6 |
6 |
Ch. 260 §§1, 2; Ch. 260 §2 |
|
|
6 |
6 |
6 |
6 |
§600.5807(8); §600.5813 |
|
|
6 |
6 |
6 |
6 |
§541.05(1) |
|
|
3 |
3 |
3 |
3 |
§15-1-29 |
|
|
5 |
10 |
10 |
5 |
§516.120(1); §516.110; §516.10(1) |
|
|
5 |
8 |
8 |
3 |
§27-2-202(1); §27-2-202(2); §27-2-202(3) |
|
|
4 |
5 |
5 |
4 |
§25-205; §25-206; §25-212 |
|
|
4 |
6 |
6 |
4 |
§11.190(1)(b); §11.190-(2)(c); §11.190-(2)(a) |
|
|
3 |
3 |
6 |
3 |
§508:5 |
|
|
6 |
6 |
6 |
6 |
§2A:14-1 |
|
|
4 |
6 |
6 |
4 |
§37-1-3; §37-1-4 |
|
|
6 |
6 |
6 |
6 |
N.Y. Civ. Prac. L. & R. §213 |
|
|
3 |
3 |
3 |
3 |
§1-52(1) |
|
|
6 |
6 |
6 |
6 |
§28-01-16(2); §28-01-16(1) |
|
|
6 |
15 |
15 |
6 |
§2305.06; §2305.07 |
|
|
3 |
5 |
5 |
3 |
Tit. 12§95(1); Tit. 12§95(2); Tit. 12§95(11) |
|
|
6 |
6 |
6 |
6 |
§12.080; §12.080(2) |
|
|
4 |
4 |
4 |
2 |
Tit. 42 §5529(b); 5525(8); Tit. 42§5525(3); Tit. 42§5524 |
|
|
4 |
10 |
10 |
4 |
§6A-2-725; §9-1-17 |
|
|
3 |
10 |
3 |
3 |
§15-3-520, 530; §15-3-530(1) |
|
|
6 |
6 |
6 |
6 |
§15-2-13 |
|
|
6 |
6 |
6 |
6 |
§28-3-109 |
|
|
4 |
4 |
4 |
4 |
Civ. Prac. §16.004(a)(3) |
|
|
4 |
6 |
6 |
4 |
§78-12-23; §78-12-25(1) |
|
|
6 |
6 |
6 |
6 |
Tit. 12 §507; 9A §2-725; 12 §511 |
|
|
3 |
5 |
5 |
3 |
§8.01-246(2); §8.01-246(4) |
|
|
3 |
6 |
6 |
3 |
§4.16.040(1); §4.16.080(3); §4.16.040(3) |
|
|
5 |
10 |
10 |
5 |
§55-2-6 |
|
|
6 |
6 |
10 |
6 |
§893.43 |
|
|
8 |
10 |
10 |
5 |
§1-3-105(a)(i); §1-3-105(a)(ii)(A) |
